According to Liverpool Victoria, it now costs £180,137 to raise a child from birth until the age of 21, with care and education being the biggest debt burdens.
Nigel Snell, Liverpool Victoria’s communications director, urged proper debt management to ensure that parents can raise a child to the best of their abilities.
“With the costs of raising a child in the UK having increased nine per cent over the past 12 months alone, parents need to be more switched on about their family finances than ever before,” he warned.
“The earlier would-be-parents start thinking about the costs associated with bringing up a child, the sooner they can start saving to meet the expense.”
According to the study, the cost of raising a child is adding to debt more than house prices.
With everything from telephone calls to tuition fees rising, in many families both parents are in employment and make sacrifices like such as cancelling holidays as part of a debt management plan.