Cost of raising a child tops £200,000

Figures released today show the cost of having a child has risen by 4 per cent in a year and by 43 per cent since the annual survey began in 2003.

More than three out of four parents say they are cutting spending due to the economic downturn and more than one in ten said their children had asked for less pocket money because of money worries.

Of the 201,000 total, childcare – including nursery fees, after school clubs and holiday clubs – remains the biggest expenditure at 54,696.

Education is the second most expensive item, costing 52,881. The survey priced food at 17,490, clothing at 14,035 and holidays at 13,207.

Costs peak during the university years of 18 to 21 (13,677 a year) but parents of toddlers are likely to find themselves paying out about 13,014 each year.

Pocket money has crept up by 5 per cent this year to 4,338 – having fallen from 3,469 in 2007. However, the study by insurance group LV> found that 13 per cent of parents had been asked for less pocket money by their children this year because of worries about money.

Parents continue to be worried about money – with 77 per cent saying they have cut back on family expenditure because of the current economic situation.

Tom Roberts, head of policy and public affairs for Children 1st, said: "By analysing calls to our ParentLine service we know that money is a concern for parents in Scotland.

"The last study we carried out revealed that around one in three parents felt that external pressures such as money worries were the most difficult aspect of being a parent. While money is obviously essential for covering the basic needs of a child, it is by no means the only factor in ensuring a happy childhood.

"If you were to ask people what their favourite childhood memory was it's unlikely that they would think of something they were bought, it would probably be of a particular moment that they spent with family or friends."

LV> Group chief executive Mike Rogers said: "Every parent will know how expensive it can be to raise a little one and, as parents, we know we don't begrudge a single penny of it.

"But I suspect many new and prospective mums and dads will be a little shocked to see the potential financial burden ahead of them."

David White, chief executive of Child Trust Fund provider The Children's Mutual, said it was important for parents to plan ahead.

"I think the cost of raising children is definitely increasing and of course this is a hugely emotional matter for families because it is their kids.

"What we are finding is that parents are becoming more aware of this and planning ahead. It is much better to save from when the child is very young and to start saving for their long-term future."

YEARLY COST

THE breakdown of parental spending by the different years of a child's life is as follows:

1st year9,152

Years 1 to 452,055

(13,014 a year for these years)

Years 5 to 1054,171

(9,029 a year)

Years 11 to 1745,399

(6,486 a year)

Years 18 to 2141,031

(13,677 a year)