Cost of Rasing A Child

There are some very interesting figures published in a report by Liverpool Victoria concerned with the cost of raising a child, as reported by the BBC.

On average, raising a child from birth to the age of 21 costs £166,000 – that’s £22 a day. And this has gone up by 8% in the last year.

Of course, this isn’t really the end of the story, as more and more kids are continuing to live in their parents homes way after the age of 21, so the true cost is likely to be significantly higher.

This makes interesting reading for me, as I have recently become a father. It’s also interesting for me to note that the most expensive places to raise kids is London, unsurprisingly, but the cheapest place to raise them is in the West Midlands or Scotland.



2 thoughts on “Cost of Rasing A Child

  1. Hi Sharon,

    A lot depends on how long you have to save, but as with all savings, the earlier you can start the better.

    I would suggest looking at http://www.savingforchildren.co.uk and this BBC article, http://news.bbc.co.uk/1/hi/business/3112942.stm, for general advice on saving for kids.

    Of course, if you specifically want to save money in order to send them to private school, then you do not specifically need child savings accounts etc.

    It might be worth considering investing in a monthly ISA (Individual Savings Account) – you can get either an equity or cash ISA (equity ISAs carry more risk, but are more likely to provide a bigger return on your initial investment). These should be seen as long term investments however, so should only really be considered if you have 7 – 10 years to wait.

    By the way, I’m not a financial adviser, these are just the sorts of things I’d consider myself.

    Rob

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