How much do you think it costs to raise a child to the age of 11? For the last couple of years, Halifax have worked with us to answer this very question: and the 2015 results show it is a hefty total of almost £87,000!
Although no-one can put a price on the joy that children bring (according to a source who will remain anonymous, this joy peaks once said child has left home!), it did get me thinking – what could you buy for £87,000? A quick search shows you could buy…
- A 2 bed house in South Yorkshire
- 145 new iPhone 6s handsets
- Aston Martin V8 Vantage Coupé
- 29 First Class return flights to New York
- A Manchester United season ticket – for 116 years
- 23 pairs of Daffodile Strass Louboutin heels
Nevertheless, the people we surveyed didn’t mention giving up designer shoes and high-end cars since becoming parents.
Parents have needed to cut back
Although half (51%) did say that they had cut back on socialising, 46% agreed that they had cut back on meals out too. As you’d expect given the squeeze on time and money once children arrive, 2 in 5 had also needed to reduce their spend on holidays, with a further third (34%) saying that they’d cut back on takeaways, clothing, and luxury items.
Parents have not just been careful with spending on themselves, many have also needed to re-assess the amount they spend on non-essential items for their children. Of these parents who said they budgeted to afford children, over a third (38%) said their number one cut back cost this year was on toys, followed by clothing (32%) and holidays (30%).
But what is the greatest monthly cost of having a child?
To no-one’s surprise, the cost of childcare (at an average of £320 per month) constitutes half of the overall monthly expense. However some parents can look forward to a potential reduction in these costs, with the government’s recent Childcare Bill which promises to ‘double free childcare for working parents’. Good news for many: watch this spot to see whether or not this change will affect the cost of children results in 2016!
Becky McGee is a Senior Research Executive in the Financial Team at Marketing Sciences.
With thanks to Halifax, for more details about this research please read their Press Release.
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