Chris Rudden, Head of UK Investment Consultants, Moneyfarm

Apr 21, 2022

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Chris Rudden, Head of UK Investment Consultants, Moneyfarm

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Chris Rudden, Head of UK Investment Consultants at Moneyfarm, comments on the amount families have to spend to raise a child.

Raising a child to adulthood takes not only emotional strength, stamina and patience, but a huge financial commitment as well. A commitment to the tune of £202,660* for the average UK family – that's just over £11,000 annually according to fresh research based on today's living costs.

Whilst the costs associated with preparing for a baby's arrival such as a car seat, pram and cot to name just a few, come in at an average of £3,530 this is merely the tip of the financial iceberg when looking at the costs to come according to digital wealth manager, Moneyfarm.

The research found that costs in raising a child from birth to 18 years old fluctuate over the course of their childhood, and after a financially demanding first three years, costing an average of £44,000 – largely down to the burden of nursery and childcare costs - they hit their highest peak between the ages of 15 and 18 years old.

In those four years from 15 to 18 years old, the average child will cost £49,791. The significant outgoings are on food, with just under £10,000 spent on fueling their growing bodies, around £12,000 taking them on family holidays and outings, £4,000 on sporting activities, nearly the same amount again subbing them in pocket money and over £3,000 on clothing them in the latest fashions.

Of all the major milestones in life, starting a family is arguably the most impactful. It's a commitment that no one takes lightly – financial, social and professional priorities all have to shift.”

“Whilst the average cost of raising a child from pregnancy to 18 years old is just over £200,000, we are conscious that the reality for many families is not to spend the average on various items, and due to the rising cost of living will opt for more economical choices. This study therefore found that the range could go from £131,000 to as much as £320,000.”

“Reassuringly, let's remember that all these costs don't come at once. There's time to plan ahead, so it's important to put an investment strategy in place that will give your money the best chance of growth to beat inflation in order to meet your long-term objectives.