With schools breaking-up for summer, new research from Sainsbury’s Finance(1) reveals that 2.56 million parents – around 22% – are planning to spend a staggering £658 million on child care over the vacation period. This equates to over £257 each, but over 400,000 parents intend to spend more than £500 on childcare over the summer holidays, of which 152,000 anticipate that they will spend more than £1,000 on this.
Sainsbury’s Finance says that parents should never underestimate the cost of looking after children, but despite this, its new research reveals that over 3.2 million of them(1) don’t have life insurance. To further illustrate the cost of looking after children, Sainsbury’s reveals that during the school summer holiday period, parents will spend around £387 each, or collectively £4.52 billion on their children through days out, shopping, taking them to restaurants, child care and giving them pocket money.
Sainsbury’s Finance is urging all parents to regularly review their protection needs, in particular life insurance which does not need to be expensive with Life Insurance through Sainsbury’s starting from as little as £5 a month(4).
Steve Johnson, Sainsbury’s Head of Life Insurance said: "It’s so easy to underestimate how expensive it is to look after a child. Kids depend on Mum and Dad for everything, not just during the holidays, but throughout their whole childhood. Parents need to consider how their families would cope financially should something happen to them, and nowhere is this more evident than in the cost of child care. Life insurance can help provide peace of mind knowing that your dependants could receive a cash lump sum if you were to die during the term of the plan."
For this year’s summer holidays the most amount of money to be spent on keeping children entertained was estimated to be taking them on special ‘days out’ such as to theme parks or zoos, at £1.49 billion, followed by taking them shopping at £1.04 billion and taking them out to eat (£843 million).
|Items(1)||Total amount GB parents intend to spend for this year’s summer holidays|
|Taking them on special event ‘days out’ such as to theme parks, cinemas or zoos||£1.49 billion|
|Taking them shopping||£1.04 billion|
|Taking them out to eat||£843 million|
|Child care||£658 million|
|Pocket money||£491 million|
Sainsbury’s was named Your Money ‘Best Online Life Insurance Provider’ 2007(3). Life insurance through Sainsbury’s(2) starts from as little as £5 per month(4).
(1) 258 GB parents were interviewed between 4th-6th July 2008. The consumer omnibus research was conducted by TNS over the telephone, and uses a large sample size that reflects the demographic profile of GB. Given this it is possible to extrapolate figures and make projections from the research results within appropriate confidence intervals.
(2) Life Cover through Sainsbury’s Bank (Level Term Assurance and Mortgage Decreasing Term Assurance) is provided by Legal & General Assurance Society Limited. Registered in England No 166055. Registered office: One Coleman Street, London EC2R 5AA. The cost of life cover will depend on the customer’s individual circumstances, age, term of the policy, level or cover, smoker status, options selected and state of health. Note that if you cancel an existing policy and your personal circumstances have changed this may impact the new premium you pay and the underwriting decision made on any new policy taken out. Financial advice should be taken before cancelling any existing policies.
(3) Your Money magazine Direct Awards 2007
(4) Your cover will depend on your circumstances and needs and the premium you choose to pay.