Debt management may ease the burden on parents

23/02/2010

Debt help may be needed by parents who have been unable to properly prepare for the financial cost of having a child.

According to research by insurance firm LV=, the cost of raising a child has risen to £201,000 in the course of a lifetime.

This is an increase of 43 per cent when compared to figures from 2003, when the insurer first began the survey.

However, as the cost of children has gone up, many parents have also had less money to put away during the recession.

A drop of six per cent in savings was recorded by the survey, which could mean that many families are risking debt by not being financially prepared.

Mike Rogers, LV= Group Chief Executive, said: "For the first time since this report began, the cost of raising just one child has topped £200,000. Every parent will know how expensive it can be to raise a little one, and as parents, we know we don't begrudge a single penny of it.

"But I suspect many new and prospective mums and dads will be a little shocked to see the potential financial burden ahead of them."

Childcare and education are the main costs, totally £54,696 and £52,881 respectively.

Posted by Jim Mead

Tags; Young Family Finances,

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