The Cost of raising a child

Becoming a parent for the first time is a wonderful and exciting time but it can be rather costly too!

According to a report released by LV= today the cost of raising a child from 0-21 years is now a staggering £227,266 up from £222,458 last year, with the first year of a child’s life seeing the largest increase.

According to the annual ‘Cost of a Child’ report from protection specialist LV=, the cost of a child’s first year has risen by 50% (£11,025 up from £7,372) since the first report in 2003. In the past 12 months it has increased by 5% and this is largely due to the cost of childcare for children aged less than a year rising by 7% (£,6,623 up from £6,191 in 2013). In total, parents now spend £66,113 on childcare – an increase of 4% overall.

Education and childcare remain the biggest costs and 71% of parents report that they have been forced to make cuts to meet the financial demands of raising their family. The overall cost of raising a child has increased by 62% since 2003.

Mark Jones, head of protection at LV= said, “Having children has never been more expensive. The costs associated with raising a family are set to remain a pressure point for families across the UK but seeing the cost of raising a child in its entirety can help people think about how to secure their family’s financial future should anything unexpected happen. We would also urge parents to think again before cutting back on insurance such as life cover or income protection. If either parent becomes unable to work or is no longer around then this type of insurance can protect you financially at a time when you most need it.”

Cutting the costs of raising a child
Top tips to Cutting the costs…

Don’t go overboard on new baby clothes!

Parent-to-be? Don’t be tempted into buying lots of expensive outfits for your newborn – packs of babygros and vests are available cheaply at supermarkets. Indulge in a couple of nice outfits for ‘showing off baby’ but don’t waste money on early outfits that they’ll grow out of. The same with your fast growing toddler – save money and buy from supermarkets or nearly new sales!

It’s OK to wear/use second hand! There’s nothing wrong with seconds! Charity shops, friends and family sharing. Buy second-hand equipment such as pushchairs, highchairs and cots but remember to buy a new mattress if buying a second hand cot, and to avoid buying second hand car-seats unless you are sure they haven’t been involved in a car accident.

Work out a budget and stick to it.

Sticking to this budget can be made easier by planning your weekly meals and shopping around for the best deals on baby things. Tesco have regular baby bargain events where prices are slashed to half price -buy in bulk when these deals are on and save a small fortune in the long run.

Shop wisely!

Buy supermarket brands – They are usually just as good as the leading baby brands and much cheaper! Shop around for the best deals to save money on regular purchases such as food and petrol!

Nappy savings!

Cloth nappies cost much less than disposable. Not everyone’s cup of tea but a great way of saving money and not like they used to be in the 70?s! Now they are funky and easy to wash!

Free Samples!

Take advantage of all the free samples and vouchers you get during pregnancy and on having a baby.

Save on holidays!

Family holidays needn’t cost the earth! Holiday in the UK or if wanting to go abroad look for regular sales and free child places. There are some fantastic deals around if you look online.

Look out for deals!

Look on money saving websites such as money saving expert, that provide links to vouchers and discount codes.

Save on childcare costs

If you need to earn some extra money but want to stay home with your little ones, think about working from home. There are lots of ‘Stay at home working mums’ that save on childcare costs and earn a reasonable income from their own home. Look at websites like working mums and Mumpreneur UK that feature family friendly job opportunities.

Join the club!

Join the supermarket and boots baby and toddler clubs to earn points and save on purchases.

Toy share

Rather than splashing out on lots of toys share toys with friends! Alternate the toys between each-other every month to excite children with ‘new’ things but without the cost.

Join a toy/book library – lots of fabulous toys and books can be hired and for free!

Read the local ads!

For school books and equipment look on ebay and local free papers for great deals. Sports equipments needn’t be expensive – look at stores such as sportsdirect that have great deals on football boots and other sport equipment. Freecycle often has fab items – and they are FREE! Register with your local site to get daily updates on FREE items wanting a good home.

Sell your old stuff!

Unwanted items in the loft? Why not sell your old stuff and make some money! Your old is someone elses new! I’ve sold lots of things on Ebay- it’s suprising what people will buy!

Having children may be costly, but what they take out of the savings jar, they replace with love and cuddles and no amount of money can replace that!

I’d love to hear your money saving tips! Feel free to link up to your money saving ideas using the link-up below.

Here’s me sharing my Top Tips on Sky News!

For further details and the full L=V report go to www.lv.com.