Having kids adds nearly £4k to annual costs

Parents are more worried about money than child-free people because of the huge cost of raising kids.

According to Hargreaves Lansdown, families with children on average earnings typically spend nearly £4,000 more a year on bare necessities than couples without children.

By bare necessities, we mean essentials such as food, rent, childcare and running a car.

So this alarming figure doesn’t even take into account many of the extra costs that come with parenting, such as paying for toys and trips out.

Cost of parenting putting families under pressure

Unsurprisingly, these extra financial burdens mean parents are more likely to run short of cash as the end of the month approaches.

In fact, figures show that parents on incomes of £34,819 have little more than £100 left over at the end of the month.

That compares with £163 among couples without kids.

Similarly, mums and dads often have less saved up.

Just 38% of parents on average incomes have the equivalent of three months’ essential spending in their emergency savings fund, compared with 74% of people without children.

The situation is even tougher for single parents.

Just 16% of people raising a child alone have enough cash left over at the end of each month, compared with 48% of couples with children.

Parenting ‘incredibly expensive’

Sarah Coles, head of personal finance at Hargreaves Lansdown, stated that parents on average incomes are spending about a fifth more than those without kids on “keeping a roof over their head and food in their stomachs.”

This, she said, means that they can often end up spending more than £90,000 over 18 years.

“Having kids may be priceless, but it’s also incredibly expensive,” she commented.

“The overall bill is far higher when you factor in the things that people want for their kids.”

Take control of your budget

If you’re struggling with the cost of raising a child and making ends meet, then help is available.

Our handy budgeting tool can help you work out what’s coming in, what’s going out and prioritise essential expenses.

We can also help you find out what benefits you may be entitled to.

And if you’re worrying about debt, we offer free debt advice online or over the phone and can let you know about different debt solutions (some are free, others have a fee).