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Cost of raising child to 21 soars to £210,000

The cost of raising a child from birth until the age of 21 has soared to £210,000, according to research by the insurer Liverpool Victoria.

The cost of raising a child from birth until the age of 21 has soared to £210,000, according to research by the insurer Liverpool Victoria.

Childcare and education account for the biggest proportion of this, costing parents £67,430 and £55,660 respectively over their offspring's childhood. The cost of education, which excludes private school fees, but does include school uniforms, after-school clubs and university tuition fees, has grown by 5.3% in the past 12 months.

Other areas of expenditure that have seen big increases in 2010 include clothing (up 11.7%), holidays (up 6.4%), food (up 5.9%) and personal care, which includes toiletries and bath equipment (up 5.1%).

No wonder then that 78% of parents are feeling the pinch and making cutbacks due to financial pressures, while a third feel they will have to tighten the purse strings as a direct result of losing future child benefit payments.

Parental spending throughout a child's first 21 years is:

1st year:        £9,491

Years 1 to 4:  £53,586 (£13,397 a year for these years)

Years 5 to 10:  £56,856 (£9,476 a year)

Years 11 to 17: £47,820 (£6,831 a year)

Years 18 to 21: £43,094 (£14,365 a year)

Despite the steep rise in fees, the research found that 35% of parents hope their child will still go to university, and they expect to make cutbacks to be able to help their child with the cost, while 19% hope their child will still go to university although they cannot afford to help with the cost.

A further 7% of parents hope their child could go to university on a scholarship, and sadly, nearly one in 10 (8%) now doubt their child will go to university at all because they won't be able to afford it.

Financial pressures have caused 39% of parents to cut back on their savings (44% in London and 46% in Yorkshire and Humberside). In addition, 30% have cancelled or reviewed their insurance products, increasing from 19% in last year's Cost of a Child report.

Read more at the Guardian website.