The Cost of Raising a Child

How much does it cost to raise a child? Child expenses from birth to age 21* £3,373 I I £1,143 Furniture Personal care £4,337 | Pocket Money I£13,761 Other £7,303I Leisure & Recreation £71,780 The most expensive part of raising a child is their education. £9,248 I Hobbies & Toys Education £15,532 I| Holidays £10,781 I Clothing I £62,099 Childcare and babysitting £18,667 I Food Which are the most expensive years? Age Cost* 1st Year £10,261 Raising a child is most costly when they are between 18 and 21 years old. Years 1 to 4 £56,562 (£14,140 a year) Years 5 to 10 £46,073 (£7,679 a year) Years 11 to 17 £52,753 (£7,536 a year) Years 18 to 21 £52,376 (£17,459 a year) Total £218,024 Assumptions How much will you be able to financially No prior savings You invest in a Junior ISA Growth rate is 5% per year support your child when they turn 18? Initial charge is 1% Annual Management Charge is 1.5% Investments are held until your child is 18 Save per month £50 £100 £200 £300 Annual saving £600 £1,200 £2,400 £3,600 Total projected growth when your child turns 18 For your newborn £14,735 £29,471 £58,943 £88,415 For your 6 year old £8,801 £ 17,603 £35,207 £59,767 For your 12 year old £3,956 £7,912 £15,825 £23,738 Source: Fidelity Junior ISA Calculator Save smart to give your child a head start When it comes to supporting your child financially - planning ahead is smart parenting. You can't predict all the cost of all the university courses, sports and trips your child will want to take. However, even saving £50 a month can help them take advantage of the great opportunities that will be available to them, Even if you can't begin saving until your child is older, you can still give them a head start by putting away more each month. To see how much your savings could grow try our Junior ISA Calculator at www.fidelity.co.uk/calculator > Important information: The value of investments can fall as well as rise, so your children may get back less than you invest. Tax savings and eligibility to invest in a Junior ISA will depend on personal circumstances. All tax rules may change in future. Do not forget that inflation would reduce what you could buy in the future with the amounts shown. F Fidelity WORLDWIDE INVESTMENT *Source: LV- Cost of a Child: From cradle to college 2012 Report.