Planning for the cost of kids

Experienced Independent Financial Advisors like those at Enable in Bishop Stortford know that savings are often made to help provide for the family.   In a recent study, carried out by the Centre of Economic and Business Research (CEBR) for the insurer Liverpool Victoria (also known as LV=) it would seem the overall basic cost of raising a child in the UK, from birth to the age of 21 has increased to by 63 per cent since 2003, when the survey was first carried out. 

Currently the projected cost stands at £229,251.  It has risen by just under £2,000 in the last year alone, almost twice the current rate of inflation.  The costs that have been pushed up are childcare costs and those associated with education, ranging from uniforms and books to school trips, which together account for almost two thirds of the total expense.

It also points to evidence that the expense of raising children could be shaping the population, with some parents actively postponing of ruling out having a second child because of the cost.

Almost half of mothers consulted by the researchers also said they had either been forced to go back to work earlier than they would have wished or taken on extra work to help meet the cost of raising a family. Myles Rix, managing director of Protection at LV= said: “Having children has never been more expensive and, with costs such as childcare and education continuing to rise, for many families across the UK this is set to remain a pressure point. “No parent wants their child to go without and given a significant chunk of a family’s income is spent on children, it is important that parents take steps to secure their household’s financial future.” Enable’s IFA’s in Bishop’s Stortford can help you lay your financial foundations for having a family.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE