Raising a child costs over £200,000

Raising a child from birth to age 21 costs more than £201,000, according to research by LV=.

This is equivalent to £9,610 a year, or £26 per day.

It’s the first time the lifetime cost of child-rearing has exceeded the £200,000 limit, and represents a 43% increase since the survey began in 2004.

The biggest costs of raising a child are childcare and education, costing £55,000 and £53,000 respectively.

“I suspect many new and prospective mums and dads will be a little shocked to see the potential financial burden ahead of them,” said Mike Rogers, LV= Group chief executive.

The rise in the cost of raising a child came despite 77% of parents claiming they have cut back on family spending because of the recent recession.

Holidays and fun days out have been the hardest hit by budget cutbacks, with 49% of parents spending less on these.

A similar number (49%) have reduced spending on clothes.

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