The continued price of parenthood as parents continue supporting their off-spring well into their 20s and 30s.

Because of limited housing options, the cost-of-living crisis, and minimal employment opportunities.  As a result, adult children are being prevented from leading independent lives.

According to the 2021 Census, approximately 4.9 million adult children reside with their parents.  Hence, this marked a 14.7% increase since the 2011 Census.

Furthermore, government data indicates the average cost of raising a child to 18 is £223,256.  Basically, around £12,400 a year. 

Notably, raising a child until the age of 30, parents may cover significant additional expenses such as:

–        Mortgage contributions:  Estimated additional cost of £50,000 per child. The average house price in the UK in July 2024 was £26,400. Parents often contribute towards a deposit or mortgage premiums to help their children onto the property ladder.

–        Education fees: Estimated additional cost of £30,000 per child. Recent studies show that 71% of parents contribute to their children’s university costs.

    Wedding costs: Estimated additional cost of £10,000 per child (based on parents contributing 50% towards wedding fees). The average cost of a UK wedding has surpassed £20,000 for the first time.

–        Grandchild support: Estimated additional cost of £20,000 per grandchild. Additionally, many parents in their 30s rely on their parents for financial support, especially for childcare costs. 

The financial support provided by parents to their adult children may be impacting their retirement planning too. 

Subsequently, 71% of people aged 35 to 54 are uncertain about avoiding running out of money in retirement.  Similarly, 60% of adults over 50 believe they will struggle once they give up work.

In total, the cost of raising a child to 30 is approximately £333,256. 

This includes £223,256 from birth to 18, plus an estimated additional £110,000 from the age of 18 to 30. 

Meeting these expenses has become a significant challenge for parents during the cost-of-living crisis. 

In particular, 21% of people with investable assets of £100,000 to £500,000 said they can only just afford day-to-day costs.  Also, 31% have reduced or stopped their pension contributions.

The continued price of parenthood.  For help with your family’s financial planning, speak with us today.  Call us on 01603-957599 for your free initial consultation.

Research based on Wealth and Wellbeing Report from LV=,