Cost of raising a child tops 180,000 pounds
London, December 7, 2007
The cost of raising a child has rocketed to more than 180,000 pounds in Britain, according to a report.
University years are the most expensive for parents, followed by the period between the ages of two and five, insurer LV= (formerly Liverpool Victoria) said.
Parents can now expect to spend 186,000 pounds on raising a child from birth to the age of 21 -- equivalent to almost 9,000 pounds per year, it said.
On that basis, the cost of raising all the children born in the UK last year would amount to 140 billion pounds at today's prices.
The cost-per-child has soared 33 percent since the survey started five years ago, on the back of mounting childcare and education costs.
LV= predicts that by 2012 the cost of raising a child could hit 266,000 pounds, or almost 13,000 pounds per year, if the current trend continues.
That would represent a 42 percent increase on current costs and a 90 percent rise over a decade. "The projection figures are quite staggering and it's unrealistic to expect people's income levels will increase in line with this rising level of expenditure," said Nigel Snell, communications director at LV=.
"This means parents will need to be switched on about their family finances more than ever, even though they have always known that raising a child is costly."
Childcare and education remain the biggest expenditures, costing parents around 50,500 pounds and 47,000 pounds respectively. Other expenses include holidays, clothing, toys, babysitting, food, pocket-money, driving lessons and presents.
University years remain the most expensive, with an average annual cost of more than 12,000 pounds.
The next most expensive period is between the ages of two and five, New parents can expect to pay as much as 8,000 pounds in the first year of a child's life alone. Regionally, parents in central London spend the most on raising a child, at almost 200,000 pounds. - Reuters