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Follow on Google News | LV= reveal the true cost of a childThe sixth annual survey from LV= insurance and investment group, on the Cost of a Child, shows that parents could spend £193,772 raising a child up to the age of 21
By: LV= Insurance The survey by the UK's largest friendly society shows that the cost of raising a child has increased by 4% since the last survey in December 2007 and is up 38% over the five years since the survey began in 2003. Childcare and education remain the biggest expenditures, costing parents £53,818 and £50,240 respectively. Mike Rogers, LV= (http://www.lv.com/ 81% of parents have had to cut back on family expenditure as a result of feeling the pressure financially in the economic downturn. Family activities are the main casualty, with over half of parents admitting to curbing their spending on holidays and short breaks, as well as reducing spend on leisure and recreational activities (52%). In order to economise, 79% of parents are consciously buying lower cost items and supermarket 'value' items. 35% are buying second hand items to help make ends meet, with the same number selling unwanted items to raise money. The pressure on family finances has also caused 37% of parents to reduce the amount they save regularly. Worryingly, 23% said they have also had to cancel or review their life insurance and income protection cover to help with family budgeting, which could have significant long term implications. Mike Rogers continued: "Although parents are feeling the pressure financially, it is important they try to look beyond the short to medium term money worries. Life insurance and income protection are more important than ever in the current climate - the financial security of a family could be hugely affected if a parent was unable to work long term because of an accident, illness, or job loss." The average household could spend £50,240 on education over their child's lifetime, including £34,300 on a three year university degree course. This includes tuition fees, travel, books, and living costs, including rent, bills and household items. The cost of raising a child peaks during the university years, when parents could pay out £13,064 a year. But new parents may also find themselves significantly out of pocket, as the first twelve months of a child's life could cost £8,853. Mike Rogers continues: "Our research shows that parents are being very resourceful when it comes to budgeting and cutting back on non-essential spend. Planning ahead is more important than ever though, and saving as much as you can, just a little and often, could help to ease the financial pain." Tax efficient savings can make people's money go even further. Individual Savings Accounts - ISAs (http://www.lv.com/ - ends - About LV= LV= is a trademark of Liverpool Victoria Friendly Society Limited (LVFS) and LV= is a trading style of the Liverpool Victoria group of companies. The new LV= brand identity was launched in March 2007. Liverpool Victoria Friendly Society Limited is authorised and regulated by the Financial Services Authority and entered on the Financial Services Authority Register No. 110035. LVFS is a member of the ABI, AMI, AFS and ILAG. Registered address: County Gates, Bournemouth BH1 2NF. Further media information available from: Lucy Pope Press Office LV= County Gates Bournemouth BH1 2NF 01202 502204 www.lv.com End
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