Kids are great…if you can afford them!

The cost of having children

Cute, but not cheap…

Having a child is a momentous occasion – it is, and should be, a life changing experience! But as such, it’s important that you plan ahead as an aspiring parent, and try your best to make sure it’s a fully informed decision.

It appears that for many, their little bundles of joy came with an unexpectedly steep price tag, as recent studies show UK adults are underestimating the cost of having children.

According to a report by Santander, UK parents spend an average of £537 per month on their kids. More than half of the respondents stated that the cost of having children has increased so much in the last few years, it’s “impossible” to be fully prepared for parenthood, financially.

Furthermore, a whole 20 per cent said that if they had known just how much raising a child would cost, they would have held off!

Adding to the above, a recent Aviva study shows that sending children to school in the UK will set parents back on average £1,600 per year, for things like uniforms, school trips, transport, and schools dinners. The figures suggested that parents can expect to fork out a total of around £22,000 on ‘free education’ for their child, between the ages of four and 18.

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Are young people in the UK growing up clueless about personal finance?

Boy with calculator

Young people are lacking in financial skills

A new joint survey by Barclays and charity pfeg (Personal Finance Education Group) has indicated that young people in Britain are entering adult life with disconcerting gaps in their financial knowledge, relating to bank statements, overdrafts and interest on loans.

The survey findings, which were released to mark the start of ‘My Money Week’ (3rd-9th June 2013), showed that around one in eight of under 25s did not know what an overdraft was. Even more worrying, 42 per cent could not interpret the difference between being overdrawn and in credit, when looking at a bank account statement.

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