It’s official: Raising a child is now more expensive than buying the average house.
• Average price of a semi-detached house in the UK = £219,255.
• Cost of raising a child to age 21 in the UK = £231,843.
You’ve insured your home, but how do you go about insuring your kids?Obviously costs change as children grow up, but from birth to 21 £231,843 equates to a monthly cost of £878.
Here’s how the total cost breaks down on average:
• Childcare & Babysitting £70,466
• Education £74,430
• Food £19,004
• Clothing £10,942
• Holidays £16,882
• Hobbies & Toys £9,307
• Leisure & Recreation £7,464
• Pocket Money £4,614
• Furniture £3,408
• Personal £1,130
• Other £14,195
59% of parents said they are struggling to manage outgoings including childcare, which amounts to nearly a third of the total cost of raising a child. Surprisingly though, 49% of parents do not have a plan in place for a sudden loss of income resulting from things like a critical illness or even the death of a parent.
Investing for their future
Even after 21 the costs keep adding up and parents are still spending £1,113 a month on things like education
and food. Today, the overall cost of a three-year degree (including tuition fees, accommodation and living expenses), is typically between £35,000 to £40,000.
Marriage can be a costly option for those who choose it, with the average wedding estimated to be £20,000. Getting a foot on the property ladder is another growing cost for the next generation. The typical first-time buyer borrows over 3.39 times their income with a deposit of 17% and we’ve all heard of the Bank of Mum and Dad.
The importance of protection
What would you do if you suddenly lost the income that pays for your child-related expenses?
• protect your earnings: income protection gives the assurance that you and your children will be provided for if you can’t work because of an accident or sickness
• protect your health: critical illness cover pays out a tax-free lump sum on the diagnosis of certain life-threatening or debilitating conditions, like cancer, heart attack or stroke
• insure yourself: life insurance can provide a lump sum payment on death that can help those left behind continue raising the children
Talk to us about protecting yourself, your income and your family both now and in the future.