The cost of raising a child in the UK is soaring and set to almost double again in the next decade. Parents can expect to fork out around $365,000 on raising a child from birth to the age of 21. This is according to a report by the UK insurance company LV=. The insurer reckons a child now costs $50 a day, with university being the most expensive years, followed by the early childhood period between two and five. LV= spokesman Nigel Snell said the statistics are quite sobering for both would-be and current parents. "The figures are quite staggering and it's unrealistic to expect people's income levels to increase in line with this rising level of expenditure. This means parents will need to be switched on about their family finances more than ever," he said.
Spending on childcare and education accounts for over half of the expenditure at $200,000. On top of that, it costs $32,000 to feed a child, $24,000 to clothe him or her, and a mind-blowing $50,000 to keep them amused with toys, holidays, hobbies and presents. Pocket money, however, decreased by $100 a year in 2007. Mr Snell said he has sympathy for parents over the rocketing expenses they face: "As a parent of three, I know from experience that sacrifices have to be made in the early years, and many parents will have had to put some plans on hold to manage the costs associated with raising a family. Of course, every parent will tell you that it is all worth it, but making even small provisions and doing a little extra planning now could help new parents see their way more easily through the next 21 years."
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