The amount of money being spent on raising a child has soared by 63% in the last decade, with parents now spending a third of their pre-tax salary on their children.
Researchers have claimed that over the last ten years, the cost of raising a child has risen to an average figure of £230,000.
According to these findings, parents are now likely to spend on average, nearly 1/3 of their salary on just one of their children.
This incredible rise doesn’t look like it will slow down anytime soon either, if anything, it will only continue to rise.
What are the reasons for this increase?
The main driving factors behind these spiralling costs are childcare, education and the rising costs keeping them fed and entertained.
One of the main reasons behind this increase is the cost of Childcare, which has steadily increased over the last ten years.
The vast majority of these costs tend to occur before a child starts primary school, as prior to this period, the average parents would have spent is £42,000.
In north-east, parents spent a third of their household income on nurseries for children under the age of three, just behind them is Wales and Yorkshire.
While across the region, a child’s education can cost some where in the region of £74,300 – that’s if they attend state school and university. This sum that has more than doubled since 2003.
This report was conducted by insurer LV=, who have claimed the cost of raising a child in Britain; from birth, until the age of 21 has increased at twice the rate of inflation since 2003. They estimate the cost to be £229,251.
Myles Rix, at LV=, said: ‘Having children has never been more expensive and, with costs such as childcare and education continuing to rise, for many families across the UK this is set to remain a pressure point.’
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The post You Won’t Believe How Much it Costs to Raise a Child appeared first on Mind The Money – Finance Made Easy | Personal Finance Blog.