Cost of raising a child reaches a scary level

The costs of being a parent are continuing to increase right alongside inflation now reaching an estimated average of about £222,450 by the time a child reaches the age of 21. When you add up all of this money, it is easy to see why as a parent you may feel broke all of the time.

This is about four thousand more pounds then it was estimated to rear a child last year and a 58% increase (£82,000 more) than it cost to raise a child a decade ago when the first estimate of the costs of rearing a child were released.

Protection specialist LV regularly publishes their Cost of a Child Report now, but a lot of parents may want to look away from some of the daunting figures. For example, childcare and education are very large expenditures that parents have no choice but to pay.

The report estimates that when you factor in school clubs, uniforms, and university costs parents can expect to pay about £73,000 per child which is a huge leap from the £33,000 of ten years ago. Child care costs have also shot up coming in at about £64,000 today versus £40,000 back in the early 2000s.

The good news is that food and holiday spending is at least a bit more reasonable, with the average parent spending about £19,000 on food for their child over the course of 21 years and about £16,000 on the holidays.

The only area that saw a decline when compared to the figures from a decade ago was clothing. The good news for parents is that it now costs five percent less to keep your children clothed so that might help stretch the budget in other areas. This is most likely due to the drop in retail prices as stores attempt to lure budget strapped customers back into their doors.

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