Many women dream of having a family but few really understand how much it actually costs to have a child. While a number of reports stipulate a certain amount of money is required, with the latest stipulating that a family of four can live comfortably on £40k, many families currently believe that it costs much more than that to have kids. With rising living costs, having children is more expensive than ever, and while unsecured loans are available to help in a financial emergency, it is important that all women and men who are considering having a family take into account the true cost of a child. Here, we’re taking a closer look at how expensive it really is to have kids.
Bills & Everyday Expenses
According to a study carried out by the Centre of Economic and Business Research for LV=, parents face bills which add up to approximately a quarter of a million pounds when raising just one child to the age of 21. This study was carried out in 2015, and over the last few years, we have seen the cost of living rise significantly, meaning there is every chance that the cost is much higher. The study showed that rising childcare fees and education expenses such as uniforms and books has led to the basic costs of raising a child raising 50% faster than inflation over the past 10 years.
The research has also suggested that some families are finding it so expensive to raise one child that they are abandoning all hope of having a second, for the simple fact that the costs are too high. Half of new mothers are being forced to go back to work early too, meaning proper family time and maternity leave is being cut down for a simple fact that raising children in a country whose costs of living are rising higher and higher is leaving families short of cash.
The research by LV= shows that it costs around £30 a day, £910 a month and £10,917 a year to raise a child. As a result of rising costs, families are also cutting back on toys and hobbies as well as spending less on food for their families, but instead of saving this money for the child’s future, the money is being put into childcare or education as the costs of these continue to rise.
What is defined as living comfortably is often relative? For some, living comfortably means having a reasonably sized property and enough food to pass around the table. For others, living comfortably also entails a nice car and an annual holiday. As a result, it is difficult to determine how much you will need to have a child and live comfortably but taking in all of the expenses that come with children and putting together a decent budget prior to the child arriving, should ensure that you are fully prepared to cope with the expenses of children while enjoying a good quality of life.
Having kids isn’t an easy feat in a country where the costs of living continue to climb. Having a clear plan and budget in advance of the arrival of the child is imperative, and while some unexpected expenses can occur, this will allow you to provide a great quality of life for your child without having to cut back on some of life’s necessities.