Follow this topicFollow this topic Knowledge » Childrens savings

Can you afford to have a child?

Rebecca Rutt
by Lovemoney Staff Rebecca Rutt on 07 September 2012  |  Comments 11 comments

It's now more expensive than ever to have a child, which is putting a real strain on families. What more can be done?

Children are expensive. It now costs £150 a week to raise a child to age 18, according to the Child Poverty Action Group. Throw in soaring child care costs and it’s easy to see why many parents are struggling.

Parents are now spending an average of 18% of their income on their kids, including childcare, holidays and education as well as necessities such as food and clothes, according to a report by Halifax.

Martin Ellis, economist at Halifax, told us: “The cost of raising a child until the age of 11 has increased by 15% over the past five years. This has added to the already considerable strain on household finances during the economic downturn.

“Childcare costs and education account for half of the total annual cost of raising a child. This is a substantial sum for most households."

Not only are parents facing high costs in raising children, they’re also being hit with rising inflation and cuts to Government benefits.

Child benefit and tax credits are available as soon as your baby is born but how much you can get depends on your individual circumstances. To find out if you’re eligible visit the Direct Gov website.

Tim Nichols of the Child Poverty Action Group highlighted that the costs of having children had risen at a time when salaries were stagnant, making things tougher, and warned that worse was still to come.

He said: "After a number of years of child poverty rates reducing, we're turning a corner. Child poverty is going to be rising by 100,000 more each year."

He also argued there was a wider benefit to keeping family support in place: "It's the lowest income families that are most likely to go out and spend any extra money in their local shops and services, which is just the stimulus that the economy needs, at the same time as helping families."

So, is the rising cost of kids putting people off starting a family?

One man told us: "Rising prices would put me off having a child. I wouldn’t want to bring a child into the world if I couldn’t offer all the best things for that child."

While another woman said: "I'd have to make sacrifices.My parents didn’t have much money when they raised me and if they can make it work surely I can."

What do you think? Would rising prices put you off starting a family, and if you have children already are you struggling? Let me know in the comment box below.

More on children:

Cheap and free ways to help your children learn

Make your baby a millionaire

Protect your kids from your money worries

How to claim your tax credits

Enjoyed this? Show it some love

Twitter
General

Comments (11)

  • wiliamson
    Love rating 4
    wiliamson said

    There is a statistic that between 20% -25% of British women will never have children. Has anyone done a study to reveal why? I would suggest one reason is that they cannot afford to have them. That is my situation - at no stage of my life, and I am now nearly 60 could I have afforded to have children. To have children at the very least you need to be able to afford a decent roof over your head. Also, my experience of growing up in poverty, despite having two hard working parents decided me that I would not have children unless I could afford to give them a decent life.

    Report on 19 September 2012  |  Love thisLove  0 loves
  • alexms
    Love rating 8
    alexms said

    There was an interesting report by UNICEF a year or two ago that compared children's lives in the UK, Spain and Sweden. In brief, it found that UK children are exposed to far more commercial influences and that UK parents tend to 'buy them off' even when they cannot afford it. It also said that family cohesion in S&S was better, with mre failies sitting down to cooked meals together.

    Personally, I'd be tempted to add that both these countries have much lower population densities thatn the UK and subsequently larger homes, with space to play, house grandparents, have dining tables etc.

    As long as we use ever-increasing house prices as a way stealthily to trasnfer wealth from the young to the old, and planning permission to prevent building of hundreds of thousands of decent-sized family homes, people in the UK will not be able to get out of their current overlap of depressing and empoverishing ruts.

    Report on 03 October 2012  |  Love thisLove  0 loves

Post a comment

Sign in or register to post a reply.

Related content

Our top deals

Provider & account name AER/Gross Interest paid Apply
now

GE Capital Direct
GE Saver Issue 6

1.10% /
1.10%
Anniversary Apply

Scottish Widows Bank
Direct Transfer Account 2

1.00% /
1.00%
Anniversary Apply

NatWest
Instant Saver

0.50% /
0.50%
Quarterly Apply
W3C  Thank you for using One Flew Over the Cuckoo's Nest