The cost of raising a child to the age of 18 is heading towards the £200,000 mark.
That’s according to the latest research from the Child Poverty Action Group.
Since 2012 their annual cost of a child report looks at how much it costs families to provide a minimum socially acceptable standard of living for their children.
The total cost of raising a child to the age of 18 has topped £160,000 for a couple and over £190,000 for a lone parent. That is the highest since calculations started in 2012.
Since that time 10 years ago the cost has risen nearly 15% for couples and 25% for lone parents.
The main reason in the rising cost of a child is higher prices (inflation).
From 2014 to 2020 inflation was fairly low – the Consumer Price Index (CPI) averaged 1.4%. However, in the last 18 months or so inflation has risen sharply.
Starting a family can be one of the most exciting and rewarding things in your whole life. Yet The Money Charity says it costs an average of £27.90 per day to raise a child to the age of 18.
Have you thought in depth about what you are going to do when the baby comes along?
You need to PLAN!
If you have a flexible financial plan in place to incorporate the impact a child will have on your life then you are much less likely to have to worry about the money side of things, leaving you free to enjoy every moment of the exciting new experience of starting a family.
Talk to Lifetime to see if we can help you.