OREANDA-NEWS. UK parents spend around £35,000 on their children by the time they reach their fifth birthday, according to research released today by Aviva. This adds up to a total of more than £28 billion* spent on the nation’s 4 million under-fives each year. The research has been carried out to support Aviva’s re-launch of its ‘free parent life cover’ which offers £15,000 of life insurance to mums and dads, and is now available to parents who register up to their children’s fourth birthday.

A study of more than 2,000 parents with children aged 0-5, has discovered that parents typically spend £7,026 a year - or £586 a month - on essentials and indulgences for their youngsters. This includes the cost of everything from basics such as nappies and milk formula, to extras such as toys and baby ballet classes. While expenses vary from family to family, average costs** are as follows: 

 Average monthly costs  Average annual costs
 Toys and games £53.30 £639.60
 Clothes £58 £696
 Essential baby / child equipment £62.30 £747.60
 Leisure / family trips out £56.20 £674.40
 Entertainment e.g. DVDs, books, tablets etc £37.30 £447.60
 Classes for children e.g. soccer tots, baby ballet £38.80 £465.60
 Special foods for children / formula £41.90 £502.80
 Childcare / baby-sitting £95 £1,140
 Nappies £47.70 £572.40
 Extra holiday costs (additional costs for children) £55.90 £670.80
 Equipment for school / pre-school e.g. uniforms £39.10 £469.20
TOTAL  £585.50 £7,026

The cost of raising children to age five also differs widely across the country, with parents in London paying more than double the amount paid by parents in Wales and the North West.

Those in the capital say that they pay an average of £894 per month – or £10,731 per year. This is in comparison to a more modest £408 a month (or £4,901 annually) in Wales.

Regional variations**** are revealed as:

Region:Monthly costs:Annual costs:
London£894.30£10,731.60
West Midlands£683.50£8,202
North East£645.30£7,743.60
East Midlands£609.80£7,317.60
Yorkshire£584.70£7,016.40
Scotland£543.30£6,519.60
South East£509.50£6,114
East£494.70£5,936.40
Northern Ireland£491.10£5,893.20
South West£461.70£5,540.40
North West£431.90£5,182.80
Wales£408.40£4,900.80

The research also revealed that parents feel under considerable pressure to spend on their youngsters. One in five (18%) say they feel compelled to spend in order to keep up with other parents. This is perhaps fuelled by the fact that more than a third (36%) of parents questioned say they know other parents who boast about how much they spend on their children. However only a modest one in seven (14%) admit to giving in to their children’s demands and buying things they don’t really need.

There is good news in that many of these parents with youngsters under six have made financial plans for their children’s futures, with more than half (52%) having opened a savings account in their children’s names, while 37% have opened a junior ISA or a Child Trust Fund. A forward-thinking 8% have started saving for a house deposit for their children and the same have started a university fund for them.

Four out of 10 (42%) parents of 0-5s have planned for the unexpected by taking out life insurance, while one in five (20%) have made a will. 

Louise Colley, protection director for Aviva says: “As every parent knows having children can be an expensive business, but it’s incredible to see how this stacks up over the years! This is why it’s so important for parents to consider how they might cover the cost of raising a child if they were to unexpectedly lose an income through illness or even worse, bereavement."

“It’s reassuring to see that four out of 10 parents with under fives have taken out life insurance, but we’d encourage the remaining six in 10 to consider the ‘what ifs’ and take steps to protect their loved ones’ futures. Aviva is offering a year of free life cover worth £15,000 per child, per parent*** for parents who register before their child’s fourth birthday, so this is a fantastic simple way to get some peace of mind, knowing that some cover is in place.”