As the recession takes a hold, families are being hit the hardest. Parents are having to take measures to cut back as much as possible. The amount of money that is spent on children's pocket money has dropped to a four year low. As well as this many parents said they were putting less money into savings accounts and were now even getting to the point of having to cancel their life insurance policies. In a bid to save even further almost three quarters of families also said they were regularly shopping at lower cost, budget supermarkets to save money.
The study was carried out by the Liverpool Victoria Friendly Society states, it found parents were being hit hard in other area too. This is due to the rising nursery charges and the increasing cost of sending children to school and then on to university.
Per child, families now face a bill of 104,058 pounds for childcare and education. This compares to, 65,446 pounds just five years ago.
The chief executive, for Liverpool and Victoria said: "Every parent knows how their hard-earned savings can dip thanks to eye-watering education and childcare costs. It is likely to be of little comfort to mums and dads to hear that pocket money costs are at their lowest level since 2004, or that expenditure on family holidays in 2008 was only four per cent up on the 2003 cost." As part of the annual survey, researchers surveyed more than 4,000 adults.
From birth to the age of 21 the survey found that the average parent will now pay 193,772 pounds to bring up one child. This compares to 186,032 pounds a year earlier and 140,398 pounds when the research was first carried out in 2003.
To feed their children parents expect to pay around 17,205 pounds and 13,281 pounds on their clothes. Costs are rising by around 1,000 pounds per year.
Parents who educate their children in the state sector spend 50,240 pounds, including an estimated 34,300 pounds on a three-year university degree course. This amount covers annual tuition fees and travelling costs. It also includes all living costs which would be rent, bills and general household items.
Parents who educate their child at a private/ independent school could pay an additional 71,660 pounds or 129,260 pounds if their child stays and boards. This means the total cost of raising a son or daughter outside the state education system may cost as much as 323,000 pounds.
According to experts, the pressure on family finances as the economic climate worsens, was now forcing many to make drastic savings elsewhere. A study found that a third of parents said that they were having to reduce the amount they saved regularly. To help with family budgeting a quarter said they had to cancel or review their life insurance or income protection cover. The amount of money spent on pocket money dropped to 4,144 pounds in 2009 from 5,469 pounds in last year's survey.
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