Cost Of Raising A Child Revealed

It costs approximately £83, 600 to raise a child to the age of 11, that's according to research carried out by the Halifax.

Within this, childcare is the single most expensive element of raising a child in their early years and at £41,139 accounts for almost half of the overall cost.

Parents were asked what their monthly expenditure was on a number of items, including food, clothing, schooling and toys; which were combined with the average childcare cost to create an overall figure. The results indicate that parents are spending on average over £600 a month (£633.54) and £7,500 a year (£7,602.50) per child up until the age of 11.
 

Across all regions childcare costs account for almost half of the monthly cost of a child at over £300 a month (£311). The second largest expense is food, but at an average of £77 a month, this is only a quarter of the monthly spend dedicated to childcare. 

Parents in London incur the highest average monthly cost for childcare at £386; the capital is followed by South England (£330). North England has the lowest average monthly cost of £289, almost £100 lower than in London. 

Childcare is most expensive in the early years, averaging over £400 a month for the first four years, and dropping to under £200 in the latter years. 

Children will cost their parents the most in the first year of their life, with parents shelling out over £8,500 in the first year alone on average. This drops to a low of £6,489 for a child aged between 5-8 years, where childcare costs dramatically reduce.
 
Food costs rise gradually with age, being most expensive for parents with children aged between 9 and 11, where monthly spend tops £87. Holidays are the second biggest cost for parents, reaching its peak for parents of children aged 5-8 years old (£71 per month).
 
Richard Fearon, Head of Halifax Savings, says: 

"It is no exaggeration that having children is a huge commitment, the stark reality of how much it could cost you over the long term should not be underestimated. The initial outlay can be a burden in the first year, but childcare remains a big expense through those early years, meaning careful financial planning is essential."

Richard Fearon adds: 

"Regardless of where you live, raising a child is going to make a huge difference to your family's finances. Many parents may find it hard to prioritise saving with so many other commitments to worry about, however it is vital that families also plan for that rainy day."