Financial planning stalls for 68% of parents

Some 68 per cent of parents said they have had to put a hold on financial planning and savings due to the costs of raising a child, it has emerged.

New research from Liverpool Victoria found that raising a child could cost parents £180,137 from when the baby is born to its 21st birthday.

Consequently, 83 per cent of those with children said they have had to postpone plans or make sacrifices due to the financial issues incurred by raising a child.

However, a loan could be utilised in many circumstances to ease the money-related pressures of bringing up children. Liverpool Victoria discovered that between the years of 19 and 21, parents spent an average of £12,153 on their offspring.

A personal loan may help to lighten this financial burden, while a graduate loan when the child finishes university could also contribute towards costs.

“Parents need to be more switched on about their family finances than ever before,” said Nigel Snell, communications director at Liverpool Victoria.

“Raising a family requires careful financial planning,” he added.

Liverpool Victoria, which is a financial services firm managing over £7.4 billion in funds, conducted the research as part of its annual Cost of a Child survey.

© Adfero Ltd

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