IMN Content - Lifestyle and Consumer Content

Cost of Raising a Child Forces Parents to Make Difficult Cutbacks

The annual ‘Cost of a Child Report’ has revealed that raising a child has soared to a record 218 thousand pounds – which works out at 30 pounds per child, per day or over 10,000 pounds per year.
Finance - 26 January 2012   Download IconContent available for download:  
Sorry, no content is available at this time, please check back later.
  News Hooks:

The cost of raising a child has soared to a record breaking £218,000 - up 3.3% on last year and a staggering 55% higher since 2003.

That works out at £30 per child per day or an incredible £10,382 per year.

The annual ‘Cost of a Child Report’ by LV= shows education and child care are costing parents the most, a massive £71,780 and £62,099 respectively; and the cost of education, including university tuition fees, school uniforms and after-school clubs, has seen the biggest rise, with a 5% increase since this time last year and a 120% increase since the report began in 2003.

The report confirms three quarters (76%) of parents are being forced to make cut backs, with spending on toys and hobbies down 5% and leisure activities down 1%. Worryingly austerity has forced two in five (43%) parents to reduce the amount they regularly save and a quarter (22%) has tried to cut down their insurance policies.

. Introduction:

Bringing up children can be incredibly expensive, and the rise in cost of education has brought a tear to most parents’ eyes. The annual Cost of a Child report has shown that bringing up a child until their 21st birthday now costs a startling £218,000, which works out at £30 per child, per day. In fact, the cost of raising a child has increased so much that it has forced some parents to cut down on their savings and insurance.

So, why has the cost of raising a child increased so much?

Joining us to discuss this further are Fi Star-Stone, childcare expert and editor of Childcareisfun.co.uk and Mark Jones, Head of Protection from LV=.

. Suggested Questions:

What does the research show about the cost of raising a child in our area?

How does the report differ from last year?

Why has the cost of raising a child increased so much?

The report has shown that parents are cutting down on areas such as saving or insurance – what are the consequences of this?

What advice do you have for parents who are facing these increasing costs?

Where can we find out more information?