How Much it Costs to Get Your Children to 18

So, great news, you have just found out that you are expecting a baby. Or you have young children already and are wondering when your cash flow is going to improve so you can have another.

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Well whether it`s a surprise or expected news, it`s your first or your fifth, once the initial fuzzy feeling wears off, it is time to start thinking about the real nitty-gritty involved with raising a child. What may seem like a daunting task can bemanaged and millions of us do every year. If you haven`t already started to prepare, no need to worry you still have around 9 months to get things in order. If you are part way through that incredible journey then you probably already have an idea of the finances involved.

Those of us who have had a child, understand what a rewarding and self- affirming experience it can be and most importantly understand that no matter what you prepare for, those little bundle of joys, can throw all sorts at you. Things you may honestly never expect.A general consensus on one of the biggest hurdles to overcome is that the money side of things can often be a tricky path to navigate.

So to answer the big question, when your child becomes an adult on their 18th Birthday you can expect to have paid out well over £100,000, possibly more depending on lifestyles, the area you live in and academic choices.

This year is, according to research from the Child Action Poverty Group, the cost of raising a child in 2013 rose to a staggering £148,000 which equates to around £160/week. That means after your first week there are only 965 weeks left at an average of £160 pounds per week to go, it will peak and trough over time bit of course there can be no let up. So when you decide to start a family try and get ahead of the game with some money in the bank and bear in mind if you are both currently working then you will probably have to shell out on childcare or reduce your hours to look after the little one.

If you are intending to help your children out that little bit extra and are planning to keep the financial support till they are 21, through university for example (maybe even older for some of us who just can`t get them out of the house!). Then you would be looking at an even larger sum. The most recent study from LV `Cost of a Child- from Cradle to College` suggests that to raise your child to the age of 21 costs closer to £222,458. That is a whopping £10,593 a year.

The cost of raising a child to the age where they can fly the nest is ever increasing and many families are starting to feel the pinch.

Whilst many of us cannot comprehend having that amount of money sat ready in our bank account, fortunately the payments are spread over a long period of time. Whilst there are ongoing costs, it isn`t too often that you will need to pay out a really large chunk. However, it is important to be aware of the very real potential that bigger expenses can and will happen; school fees, holidays or even a house extension to accommodate the extra kids running around, can all cost significant sums.

Although the cost of raising a child continues to soar, already increasing 58% over the last ten years from LV`s initial study, it is currently coinciding with some of the lowest borrowing rates in recent times.

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New babies may only be tiny little things but they sure can take up a lot of space, prams, cots, new wardrobe space and the ever increasing wardrobe to go in it as they grow up. They all take up lots of space. Whilst it is great to try and save money in preparation for a new child`s arrival, it can also be a savvy idea to take advantage of low mortgage rates and purchase a new property or remortgage your current one for your growing family to call a home, one where you can all fit without the worry of it bursting at the seams and where your payments are low enough to give you a cashflow that can support a family.

The recent recession has burdened many families but historically low interest rates mean that taking out a loan at the right time and for the right reasonscan be a financially viable way to help you deal with the rising costs of raising a child.

Even the everyday costs can easily build up. If you don`t have the luxury of a family member to look after the kids, childcare costs can escalate. It is in these instances that many of us look to credit cards to try and keep afloat. The interest incurred on these cards can cost you even more and it can be well worth looking to pay them off and reduce your monthly outgoings as a whole.

Your home could be the key to this. If you have any equity available you could remortgage to release some of the money you have built up in your property. This can help to ease the more hardpressed of timesby restructuring your finances and all the while reducing your monthly outgoings. Consolidating down existing debts through refinancing via a secured loan or is another option and can help you get back on top of your cashflow.

Whether you are simply looking to move home to put a roof over your bigger brood, or you could do with a loan to get a grip on your finances and get you back on track, talking to an established finance business like could help. A reputable broker should take into account your future needs, and assess your affordability including your children. This will ensure that the next move you make financially is the right one to help your family navigate life`s financial maze.

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