How Expensive Is It to Have Children? A Financial Adviser’s Take on Raising Kids in the UK

By Samuel Mather-Holgate

They say children don’t come with a manual — but maybe they should come with a financial statement.
From the moment you buy that first babygrow to the day you wave them off to university, raising children in the UK can be one of life’s most rewarding (and most expensive) experiences.

So, just how costly is it to bring up a child — and what can you do to prepare?

The Real Cost of Raising a Child in the UK

According to the Child Poverty Action Group, the average cost of raising a child from birth to age 18 now ranges from £166,000 to over £230,000 — and that’s before university.

Infancy (0–5 years)

Childcare is the biggest cost in these early years.
Even with government support, full-time nursery care can easily reach £14,000 per year. Add nappies, baby formula, prams, and sleep-deprived Amazon shopping at 2 a.m., and it’s no wonder many parents say the first five years are the most financially intense.

School Years (5–18 years)

Uniforms, school trips, hobbies, after-school clubs, pocket money and holidays all add up.
The average cost of extracurricular activities alone is estimated at £28 per week per child, according to MoneyHelper.
And let’s not forget the tech — laptops, phones, and gaming consoles don’t come cheap.

University & Beyond

If your child chooses higher education, expect another £25,000–£30,000 in costs on top — tuition, accommodation, and living expenses.
The “Bank of Mum and Dad” remains one of the UK’s largest lenders, funding not only education but often that first house deposit too.

Does It Get Cheaper with More Children?

Sort of — but not really.
Hand-me-downs and shared bedrooms can reduce costs, but older children tend to become more expensive over time.
Sure, you might save on Lego and clothes, but you’ll lose it again when everyone wants their own smartphone, subscription, and driving lessons.

Still, families often become savvier with each new arrival. Many find they’re better planners by the second or third child — and that makes all the difference.

Planning Ahead: Making It Manageable

Raising children may be costly, but planning for those costs can take the stress out of the process.

1. Budget Early and Review Often

Start with a realistic monthly budget that includes everything from childcare to future savings. Even putting aside £50 a month per child can build up over time and provide a safety net for unexpected expenses.

2. Protect What Matters Most

If something happened to you, could your family cope financially?
Life insurance and family income benefit policies can make sure your loved ones are financially secure — covering everything from mortgage payments to everyday living costs.

3. Save for Their Future (and Yours)

Don’t forget yourself!
While it’s tempting to prioritise your child’s savings, continuing to contribute to your pension ensures you won’t have to rely on them later.
Use Junior ISAs for long-term, tax-free savings for your children. They’re a simple, effective way to grow money for university or that first home.

4. Review Your Financial Plan Regularly

Your needs change as your family grows — from childcare and mortgages to university fees and retirement planning.
Working with a financial adviser can help you adapt your strategy at each stage and balance your short- and long-term goals.

How Mather & Murray Financial Helps Families Plan

At Mather & Murray Financial, our advisers near our office in Swindon, Cirencester, and Bristol (and nationwide) specialise in helping families like yours make sense of money.
We help clients plan for today, protect their families, and build long-term wealth — whether that’s through pensions, protection, or investments.

Our team can also help with mortgage advice, ensuring your family’s biggest financial commitment is structured sensibly alongside your wider financial plan.

Final Thoughts: You Can’t Put a Price on Love — But You Can Plan for It

Having children is one of life’s greatest adventures — emotionally, personally, and yes, financially.
The good news is that with the right planning, protection, and advice, you can give your children everything they need without compromising your own goals.

If you’d like help reviewing your family’s finances or planning for the future, our independent financial advisers are here to help.

Contact Us today for a free, or arrange a CALL BACK.

FAQs

Q: How much does it cost to raise a child in the UK?
A: On average, between £166,000 and £230,000 from birth to age 18, excluding university costs.

Q: What’s the best way to save for my child’s future?
A: Junior ISAs are a great start. They’re tax-free, flexible, and grow alongside your child.

Q: Should parents have life insurance?
A: Yes — it’s vital. It ensures your family can maintain their lifestyle if something unexpected happens to you.

Q: Can a financial adviser help with family planning and mortgages?
A: Absolutely. An adviser can integrate your mortgage, protection, and investment plans into one clear financial strategy.