Raising a child costs £218k

The cost of raising a child is increasing, putting an added strain on parents' finances.

A survey by LV has revealed that the rising cost of childcare, education and food bills has made the total cost of bringing up children rise by 3.3 per cent this year.

It found that the total cost of raising a child from birth to their 21st birthday is now £218,024, more than the average house price, which comes in at £160,000.

This breaks down to £10,382 a year, or £28.44 every day.

Education, not including private school fees, accounts for the highest proportion of the cost at a total of £71,780, while childcare and babysitting comes in at £62,099.

Bringing up a child has become 55 per cent more expensive since the first survey by LV in 2003, when the cost was £140,398.

However, as parents look to cut back the amount they spend on hobbies and toys has decreased by around five per cent.

Scotland and Northern Ireland are some of the most expensive places to raise a child, with total costs of £220,857 and £228,363 respectively.

"Seeing the cost of raising a child in one big figure is a good way to help people think about how to secure their family's financial future should anything unexpected happen, be that through savings or insurance," explained Mark Jones, LV head of protection.

The rising cost of living, as well as student loans, has also increased the length of time children will stay living at home.

Rasheed Ogunlaru, life coach and motivational speaker at rasaru.com, said that it is more likely young adults will move back in with their parents after university in order to find a career and build up a financial base.

Staying at home will mean young adults can start their life from a basis of savings rather than debt.

If you're trying to save for the future contact Moneyextra. We offer a range of services that will help you find the best savings rates for you.

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2012-01-26 17:08:13 © Moneyextra.com