Cost of raising a child may increase debt worries

Thu, 26 Jan 2012

The increasing costs associated with raising a child could result in more families facing the prospect of debt troubles.

New research carried out by LV= has shown parents now have to typically fork out a record £218,024 on their offspring until they reach the age of 21.

This figure calculates to the equivalent of £10,382 a year, a monthly sum of £865 or £28.44 every 24 hours.

As such, the cost of raising a kid has upped by 3.3 per cent when compared with 2010, suggesting more mothers and fathers could be struggling with debt this year than last.

The study revealed the biggest expenditures for mums and dads remain education and childcare, amounting to £71,780 and £62,099 respectively.

Mark Jones, head of protection at the provider - which started out as Liverpool Victoria in 1843 - said: "With tuition fees increasing this year we expect to see more parents making significant cut backs across the family budget to accommodate this."

He added many people are on the lookout for savvy ways in which to reduce their expenditure and therefore still be able to afford their son or daughter's education .
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