Raising a family in 2018: can you afford it?
With the birth of Will and Kate’s third baby hitting the headlines, what better time to take a look at what raising children means to an average UK family in 2018. How many children do we have on average, at what age and importantly, how much is it going to cost us?
One, two or three?
It might not surprise you to know that The Duke and Duchess of Cambridge are going against the trends of the day by having their third child. Whilst it’s by no means uncommon, stats from the ONS last year highlighted that the average number of children for a British family is now 1.9, down from the 2.2 their mother’s generation had.
Estimates suggest that costs for raising a family will have risen by 12% between 2012 and 2019.
Career or baby first?
The reasons for this dramatic drop in birth rate are perhaps not so surprising either. Women are choosing to have children later on, often because they are focusing on their career first. Ideas about having large families to ensure the survival of at least some children, or to look after the elderly (which were still prevalent even in the years following the Second World War) are now out-dated, and there continues to be a general downward trend in teenage motherhood.
Affording a family
But, perhaps the most telling reason of all is the cost. The Cost of a Child in 2017 report by CPAG highlights the rising costs of childcare, the impact of inflation and reduced child support from the Government, all contributing to a shortfall in affordability.
Expensive for two parents . . .
The report states that the cost of bringing up a child to the age of 18 for a two-parent family, is £75,436 but this figure doesn’t include housing, childcare and council tax which would see that price increase further if factored in. It’s also interesting to note that calculations on Moneysupermarket suggest raising a girl is more expensive than raising a boy.
. . . but lone parents are even worse off!
The costs are even higher for single parent families who are often at the mercy of paying for the additional childcare another parent could provide, with basic costs amounting to £102,627.
There is help for working families in the form of childcare vouchers (changing to the new ‘Tax-free childcare’ system in the next six months or so). You can read more about it in our recent blog.
Although a third child for the royals is not likely to present any additional financial pressure, estimates suggest that costs for raising a family will have risen by 12% between 2012 and 2019 so the future for the average UK family looks increasingly expensive! There is lots of online financial planning support available, but www.moneysupermarket.com has some of the best tips around to help your money go further.
