Cost of a child over £43,000

Consider a long-term investment plan to help pay to bring up your child says Invesco Perpetual.

Bringing up a child in the UK costs every parent, on average, at least £46 a week. Assuming a child is absolutely dependent for support on his or her parents until the age of 18, the total bill will be £43,056. If however, education-related costs are included in the equation, then mum and dad could end up spending as much as £150,000.

Rick White, Marketing Director at Invesco Perpetual said: “One of the ways to ease the pressure is to invest on a long-term basis with a view to building up a substantial capital sum which can help pay for some or all of the costs of schooling. Parents and other members of the family could consider an investment programme to pay for education as soon as the child is born.

“If your intention is to pay for your child’s secondary education i.e., for up to seven years from age 11 to 18, then equity based investments could be worth considering. The reason being, that historically, the stock market has produced greater returns over the long term, than other popular securities such as bonds, gilts and deposit accounts.

“Remember that money deposited in a bank or building society account is relatively secure, whereas an investment in an ICVC involves stockmarket risk. Nevertheless, all stockmarket-based investments need time to grow - at least five years – and ideally 10 years. So starting sooner rather than later is what it’s all about and, with professional help from a financial adviser, it should be much easier to plan for the costs of bringing up and educating a child.”

The older they get, the more they cost…

Child’s age - Cost per week

0-1 £40.50
1 £45.50
2 £43.00
3 £45.00
4 £41.50
5 £44.00
6 £53.00
7 £50.00
8 £45.50
9 £51.00
10 £51.00
11 £51.00
12 £51.00
13 £51.00
14 £56.00
15 £62.00
16 £64.00
17-18 £56.00