The real price of parenthood revealed: £212,961 to raise a child in the UK

That figure includes everything from nappies and school uniforms to pocket money and food, however, if you add full-time childcare into the mix, that total rises to £233,707.

For parents, these numbers highlight the importance of planning ahead for both the expected and unexpected costs of parenting.

The study divides the financial commitment into three main categories: essentials, childcare, and additional costs like recreation and university support. Here’s a closer look at where the money goes:

Essentials

Covering basics such as housing, food, and clothing, these are the unavoidable costs of everyday life. According to the study:

• Housing, fuel, and power: £43,015 over 18 years.
• Food: £25,842, with weekly grocery bills increasing as your child grows.
• Clothing and footwear: £6,836 for growing wardrobes.
• School uniforms: £4,878 for primary and secondary years combined.

For the early years, parents also spend an average of £917 on nappies during the two years their little one is in them.

Childcare costs

Full-time childcare is often a necessity for working parents, with costs averaging £89,243 for children aged 0–12. For part-time childcare, the cost drops to £47,751, just over half the full-time amount.

The largest childcare expenses include:

• Full-time nursery care for ages 0–4: £54,451.
• After-school clubs and holiday care for ages 4–12: £34,792.

Without childcare, the overall cost of raising a child is £212,961, but for working parents, combining these expenses can push the total up to £233,707.

The costs of raising a child often extend well beyond their 18th birthday. By 2040, parents may need to contribute £4,409 annually to support university living costs, with 50% of students relying on parental funding.

Helping children onto the property ladder is another financial milestone for many parents. By 2040, the average house price in the UK is expected to rise to £376,529, meaning a 20% deposit could cost around £75,306.

Derence Lee, Chief Finance Officer at Shepherds Friendly, stresses the importance of preparing for these expenses:

While there will always be significant costs associated with raising a child, planning ahead is one of the most effective ways to avoid being hit with large unexpected costs. Teaching your child about the benefits of saving money and setting up a Junior ISA can also make a big difference, helping them learn about financial management while giving them a head start in life

How to manage the financial challenges of parenting

• Start saving early: Open a Junior ISA or savings account to build a fund for your child’s future.
• Budget wisely: Break down big-ticket costs into smaller, manageable amounts.
• Teach financial literacy: Encourage your child to save their pocket money and plan for purchases.
• Explore childcare options: Consider government schemes or employer benefits to reduce childcare costs.
• Plan for the future: Factor in potential university and housing contributions when setting financial goals.

Parenting might come with a high price tag, but it’s also an investment in memories, growth, and joy. By planning ahead, you can navigate the journey with confidence.

Read more:

• New study reveals which UK companies offer the best parental leave
• How to manage your finances for maternity leave: 4 tips from a money expert
• Simple ways to help your child learn to be clever with money