Cost of children rising faster than house prices
The cost of bringing up children is rising even faster than house prices, with education going up over a quarter in the past year, according to a survey on Friday.
The cost of kids has soared 28% in the past four years and 9% in the last year alone—outstripping an 8% rise in United Kingdom property prices.
Parents will fork out more than Â£180Â 000 per child from birth to age 21—equal to Â£8Â 500 per year or Â£23,50 per day—the Liverpool Victoria’s annual “cost of a child” survey says.
Soaring education costs are a big factor. They have risen 26% in the past year to almost Â£47Â 000 per child, following the increase in university tuition fees in England and Wales.
Putting a child through university education now costs almost Â£32Â 500, including fees, books and living costs.
Parents who choose to privately educate their children can expect to spend an extra Â£71Â 000, if their child is a day pupil, or Â£130Â 500 more, if their offspring boards.
Childcare costs are the second largest expense. They have risen 7% in the past year and now cost parents over Â£49Â 000 per child.
A further Â£16Â 000 will be spent on food, Â£12Â 000 on clothing, Â£11Â 000 on holidays, Â£9Â 500 on hobbies and toys and Â 5Â 500 on pocket money in the first 21 years of a child’s life.
Almost two-thirds of UK families said both parents had to work to help cover the costs of raising their children, but 12% of them said they still had to rely on regular financial support from other family members.
Parents said they made other sacrifices too, with two-thirds putting savings on hold, 60% compromising on holidays and the same proportion cutting back on socialising.