We always knew having a baby was never going to be easy – or cheap. One of the first things we're forced to think about is the cost of stocking up on endless supplies of nappies, buying bibs by the dozen to get through messy dinners, and brushing up on our math skills to figure how we’re going to cover childcare costs.
But how often do we consider the cost of raising a child across a lifetime?
Thanks to a new report commissioned by LV= insurance, we’ve been forced to face facts, as they revealed that the average cost of raising a child is at an all time high.
Think a staggering £230,000 from birth, right up until they officially become an adult at the age of 21.
That means the first year alone will cost you £11,000 - yikes!
This figure is an increase by 4.3 per cent on the previous year – despite an inflation rate of only 0.2 per cent. And since the stats were first pulled together by the Centre for Economic and Business Research in 2003, parenting cost have risen by 65 per cent.
The latest research broke down some of the key outgoings when it comes to child rearing, like costs of childcare, education and basic essentials – and it’s not a pretty sight.
All of those zeroes are in the wrong places, if you ask us.
If your baby is set to enter the world in 2016, expect to spend:
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Food? You’ll fork out over £19,000.
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Hobbies and toys? Say goodbye to £9,000.
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All that cute clothing? Yep, £10,000.
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Childcare and babysitting? You’ll probably spend up to £70,000 across your little ones lifetime.
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Uniforms, text books and packed lunches? It’ll set you back £74,000.
And that’s all before you factor in pocket money, all the different furniture they will need (yes, your baby WILL eventually grow out of his cot!), and, you know, whether you want to splurge and take the little tots on holiday every once in a while.
Just thinking about this is making our bank balances quiver with worry.
Insurer LV, who commissioned the research, explained: “The cost of raising a child is at an all-time high and, with the price-tag of childcare continuing to rise, family incomes are being stretched even further.”
Remember that this is all before you factor in multiple children, and the fact that our kids are leaving home at a later age than ever.
Think they'll be flying the nest at 21? You should be so lucky.
Not surprisingly, six out of 10 parents admitted they struggled to manage their outgoings, and half of parents said they had no back up or plan in place if they were to lose their main source of income suddenly.
But LV said:
“Highlighting these costs can help parents to better manage their finances as well as consider putting measures in place to ensure they have a secure financial future should they unexpectedly find themselves without a regular income.”
Well, despite the cost of rasiing a child – we guess you can't put a price on the joys of becoming a parent, right?
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