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 £180 000 per child from birth to age 21—equal to £8 500 per year or £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 £47 000 per child, following the increase in university tuition fees in England and Wales.

Putting a child through university education now costs almost £32 500, including fees, books and living costs.

Parents who choose to privately educate their children can expect to spend an extra £71 000, if their child is a day pupil, or £130 500 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 £49 000 per child.

A further £16 000 will be spent on food, £12 000 on clothing, £11 000 on holidays, £9 500 on hobbies and toys and  5 500 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.
- Reuters

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