Although having a child is challenging, it may bring great happiness and pleasure.

In 2021, raising a kid to 18 would have cost a couple £160,692 and a single parent £193,801 in total.

The Child Poverty Action Group has published the “Cost of a Child” report since 2012, demonstrating that the overall cost is currently at its highest since the study’s inception.

In order to help families afford the escalating costs of having a kid, such as £11,250 a year or £938 a month, policymakers should consider several options.

Planning ahead before your child’s birth is the first step in many strategies to reduce the expense of raising a child.

This article will help you understand how much money you’ll need to raise a child in the UK and where you can cut the costs.

Important Costs You Must Consider

Given below are some of the important fields that need to be considered when making a budget for your child’s care and future—

1. Childcare

The TUC adopted Tax-Free Childcare in 2008 to help families save money on childcare costs.

The programme offers annual savings of up to £2,000 per child, so it is important to determine if you qualify and how much you can save on daycare fees.

Additionally, prepare yourself for emergencies and unexpected costs when planning childcare expenses.

As the summer holiday winds down and the back-to-school season starts, child care becomes an integral part of the conversation, particularly in the context of the cost of raising a child in the UK.

This is where the role of a baby sitter can be a true lifesaver. Hiring a trusted baby sitter through reliable platforms, such as Yoopies, provides flexible support and a personal approach to child care, giving parents a bit of breathing space and also contributing to a decrease in the overall child-raising expenses when compared to full-time, professional child care services.

2. Education

Students should prioritize financial responsibility while in school by getting their uniforms from shops and preparing meals. 

Early savings help prepare for future costs like tuition and books for college. This will help build a solid foundation for the future.

3. Activities

It is important to prioritize your child’s favourite activities and invest funds accordingly. 

Reusing equipment for athletic activities can help, and schools may provide sessions for free or reduced rates. Look into local initiatives or grants to fund extracurricular activities.

4. Household

A typical household spends over £550 weekly, with travel being the most expensive. To stay within your means, shopping around for discounts and maintaining a record of expenditures is important. 

Planning meals in advance and shopping in bulk is essential to save money on groceries.

5. Clothing

An estimated £16,000 is spent annually on raising a child from 0 to 18. 

Consider accepting and purchasing used clothing to save money, especially while the children are small, then giving or selling their outgrown clothing. This will aid in recovering part of the expenses.

6. Leisure

Children require entertainment throughout half-term and holidays. 

Create a calendar of enjoyable events and use 2-4-1 coupons and reduced tickets to arrange their budget. Further money-saving options include 2-4-1 coupons and cheap tickets.

Tips To Cut The Cost Of Raising A Child

Planning and budgeting should consider that raising a kid has costs beyond the newborn period. 

Here are some great tips to help you figure out ways to cut costs and save money for your child’s future:

• Before your child turns one, consider opening a savings account for upcoming costs.
• Spending should be prioritised, and superfluous costs should be reduced.
• Invest in a life insurance policy to guarantee your child’s financial security in an unanticipated disaster. 
• Make babysitting trades. 
• Buy used clothing and toys, and sell whatever you no longer require. 
• Go to your local library to locate free activities, books, and toys to check out. 
• Look for affordable classes and clubs. 
• Check out social media groups or online parenting forums to connect with other parents and learn about regional options.

Additionally, when you are looking for a new job or planning to switch your existing one, it is important to calculate your average salary in the UK to decide whether you should take it.

If you’re a couple and planning to have kids, make sure that both parents have their work. With the rising living costs, double income is gaining more importance than ever.

Should You Start Planning To Have A Child?

Having a kid can be expensive, but with careful financial preparation, it is possible to make it more manageable. 

Having a kid can be more easily managed by setting up a budget and finding methods to save costs, such as buying used products or switching to cloth diapers.

Also, many organisations provide advantages like flexible spending accounts or paid parental leave that can assist in defraying the costs. 

It’s critical to start saving immediately and have money set aside for emergencies if you want to be financially ready for motherhood. 

Investing in money early on is a great strategy to assist your child in building a nest egg for the future. 

Last but not the least, educating your child on the value of money and how to handle it responsibly is critical.