Perhaps one of the biggest expenses many of us bear aside from getting a mortgage is having children. Lots of people in the UK are keen to start a family and often have dreams of being parents to two or more kids.
It’s no secret that the cost of living goes up each year. For many people, their salaries don’t increase to keep up with the additional cost. As a result, many of us find that we have less disposable income to enjoy each month.
The reality is some people find they can seldom afford to have more than one child. But just how bad is the problem these days? Here’s a brief insight into the average price of having a baby:
First 12 months: £11,224
Looking at the total cost of raising a child until they are a teenager, the first 12 months are the cheapest. On average, one can expect to spend up to £11,224 on their newborn right through to their first birthday.
That works out around £935 a month on average. You might think that’s a rather high amount, but there’s one cost many parents can’t avoid. Childcare is a necessity for many mothers and fathers. Parents, especially mums, often find they have to return to work earlier than they would like.
When that happens, and there’s no-one else at home to look after the baby, they must pay for childcare.
Total cost of raising a child from birth to 21
Using current figures, the average total cost of raising a baby until they reach 21 is a whopping £229k! Many people spend similar amounts of money buying a house as you can imagine!
From such a figure, one might assume that parents buy all kinds of luxuries for their kids. The truth is today’s families are spending less on things like hobbies and toys. But, those savings get eclipsed by the cost of childcare and education.
When both parents have to work, they have no choice but to pay for childcare. According to the Money Advice Service, the average cost of childcare per week is £115. This is for part-time care. Full-time care is almost double that price at £212 on average per week. Childcare costs from newborn to 21 years of age is £67k on average. That’s almost two-thirds the overall cost of raising a child to their 21st birthday!
Rising education costs put a burden on each family’s budget
The shocking truth doesn’t just stop at the cost of childcare. Parents must also pay for their children’s education costs too. Things like school uniforms, books and excursions don’t get paid by the government. That means parents must find the money to cover such expenses.
Many parents also pay for home tutoring. It’s a well-known fact that some schools just aren’t good at teaching tomorrow’s generation. As a result, private tuition fees bump up the cost of education per child.
And should parents decide to send their kids to private school, those costs will rise further.
For further information please visit Money Advice Service for help and advice.
DISCLAIMER: These articles are for information only and should not be construed as advice. You should always seek advice prior to taking any action.