• Nearly half (47%) report being shocked by school-related expenses
• 44% use savings and 39% rely on credit cards for unexpected childcare costs
• 47% turn to family/friends for summer holiday childcare, especially in the North East (57%)
• A fifth (20%) of parents use ‘buy now, pay later’ schemes to meet their childcare needs
Raising children is one of life’s greatest joys, especially when celebrating key milestones like birthdays or holidays. However, with living expenses at an all-time high, some parents have been caught off guard by unexpected costs.
A recent Legal & General study was conducted to examine how parents are feeling the strain of hidden expenses in raising children. The study, involving over 2,000 UK parents with children aged 16 and under, reveals both the hidden costs and the ways families are making the most of every moment.
Overlooked Costs of Raising Children
In the UK, the cost of raising a child to age 18 is £260,000 for a couple and £290,000 for a lone parent, according to Child Poverty Action Group. While these figures are important, understanding and planning for unexpected costs can help families manage these challenges with confidence.
The survey revealed parents are finding resourceful ways to manage childcare costs, often balancing multiple strategies. While 44% of parents dip into their savings and 39% turn to credit cards to cover expenses, many are also leaning on their support networks. During school holidays, nearly half of parents rely on family and friends for childcare—a number that climbs to 57% in the North East, highlighting the importance of flexible, community-based solutions.
Costly Hobbies
Extracurricular activities are an important part of a child’s development and wellbeing, offering opportunities to learn new skills, build confidence, and make lifelong memories. However, 41% of parents admit they were surprised by the costs involved.
Swimming emerged as the most popular activity, with nearly half of families in Liverpool (47%) and Greater London (44%) prioritising lessons each week. On average, parents are investing £186 per child per month in these activities—demonstrating a strong commitment to their children’s growth and happiness.
Tips for Tackling Family Costs: Practical Ideas from UK Parents
To adapt to the rising costs of parenthood, parents are sharing resourceful tips and strategies, which can inspire other families to make the most of their budgets:
• Embrace Free Activities: Over half (51%) of parents find creative, free activities for family fun, showing that some of the best memories don’t come with a price tag. From local libraries to youth clubs, you can browse your local council website to source free activities.
• Seek Second-Hand Finds: From clothes, to toys, 37% of parents opt for second-hand purchases, proving that quality doesn’t have to mean brand new. Charities such as Oxfam and the British Red Cross have a great selection of second-hand gifts to purchase.
• Tap into Support Networks: For childcare needs, especially during summer holidays, one-third (33%) of parents turn to trusted friends and family for help, showing the power of community support.
With rising living costs, many parents encourage expectant families to plan ahead. In fact, 44% recommend starting to save as soon as possible to prepare for hidden expenses.
From starting a savings plan to budgeting and taking out life insurance, Legal & General’s survey highlights practical steps families can take today to prepare.
Paula Llewellyn, Chief Customer and Strategy Officer for Legal & General Retail comments: “Raising children brings unparalleled joy, but it can also come with unexpected costs. Our survey sheds light on the hidden expenses that parents often face and highlights the strength of family and community support.
“At Legal & General, we aim to raise awareness of these hidden financial burdens and emphasise the importance of proactive planning. Life insurance and thoughtful financial strategies are essential tools in securing long-term financial stability and peace of mind for families.”
For more information, please visit here: https://www.legalandgeneral.com/insurance/life-insurance/hidden-cost-of-raising-kids/
