The average cost of raising a child in the UK, including housing and childcare from birth to 18 years old, is £202,660. That’s £11,258 a year.
We can sympathise with lower-income households because the UK poverty line for a two-parent household with two children under the age of 14 is £20,099 per year. I’ve come across many parents choosing to have one child as a result of this and opting to give that child a better standard of life financially.
Personally, I’ve always thought having a sibling is a nice balance when growing up, but I understand that’s not everyone’s view or option.
On the extreme end, some parents disregard the finances and have lots of children but this then reduces the standard of living for the whole family if they don’t have the money to cover the basic expenses.
“My wife and I decided to have two children, which meant that £202,660 is now £405,320”
This is basically the cost of a one-bed flat in London these days.
For many families, childcare is one of the largest expenses. Full-time nursery can cost as much as rent or a mortgage payment. Nannies or au pairs are another option, but they come with their own set of costs. It’s important to research and budget for the childcare solution that best fits your family’s needs and finances.
Not to mention, we all aspire for our kids to do well in life and get the best education so that down the road they can be successful.
Education costs can start early with reception and continue through to university.
While public schools offer free education, there are still expenses like school supplies, school trips, and extracurricular activities. For those who choose private schooling, the costs are much higher. And then there’s university which can be one of the biggest financial challenges for a family. It is not always the case but these days this could include a degree costs an average of £28,000.
It’s debatable that if your children decide to take on a student loan, they’re now solely liable for paying off that debt plus interest. As parents, I believe we have a duty to help our children and guide them into looking at options outside this traditional route or at least fund the cost.
“The numbers are estimates and scenarios do vary, but this gives you a rough idea.”
If you’re living on an average income then having a smart plan, and family budget could take away the headache of penny-pinching, and you can truly enjoy living a family life.
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