Parents spend £27.50 a day on average for every child from the day they are born until they are 21 years old – and the costs are set to continue going up.
The average spending adds up to £836 a month or £10,040 per year per child and totals a mind-blowing £210,000 by the time they leave university to get a job and finance themselves.
The figures come from an annual cost of childcare survey by insurer LV= that reveals the cash parents spend on bringing up children have doubled since the first report was published in 2003.
Many parents are struggling to pay for their children’s’ lifestyles and are dipping in to savings or cutting back on other spending, says the report.
Around 78% of parents confirmed they are tightening their belts in other areas to pay for their children’s keep. One in three (33%) have concerns about how they will pay for their family when they lose child tax credits.
The money families spend goes mainly on childcare and education amount to the largest share of the cost, adding up to £67,430 and £55,660 respectively over the 21 years.
Education costs have soared by 5.3% in the past year, and do not include private school fees, but do cover spending on school uniforms, after-school clubs and university tuition fees.
Other costs they have increased in 2010 include clothing (+11.7%), holidays (+6.4%), food (+5.9%) and personal care, like hair cuts and toiletries (+5.1%).
Cost of raining children peak in their later years. Spending on a new born’s first year of life is around £9,150, while costs for a 20-year-old at university are nearer £14,650 a year.
Some parents fear the spiralling costs of university tuition, that are set to go up from £6,000 a year to £9,000 a year in 2012 will stop their children from going to university. A few (7%) are relying on financial help from scholarships, while others (8%) believe they will never afford the fees.
Nevertheless, more than half of parents (56%) want their children to go to university. More than a third (35%) are ready to go without themselves to put the money aside, but a fifth (19%) cannot see how they can make any financial contribution to help their children study.
LV= head of protection Mark Jones said: “We have all considered short-term measures to stretch the family budget and try to save money. But with 14% of parents saying they have made cuts specifically to their life, health, or unemployment cover, people could be leaving themselves and their families at risk.”
