A survey from insurance and investment group LV= shows that parents could spend £193,772 on raising a child from birth to the age of 21. This is equivalent to £9,227 a year, £769 a month or £25 a day.
The survey, now in it's sixth year, shows that the cost of raising a child has increased by 4% since the last survey in December 2007 and is up 38% over the five years since the survey began in 2003. Childcare and education remain the biggest expenditures, costing parents £53,818 and £50,240 respectively. More than eight out of ten parents (81%) have had to cut back on family expenditure as a result of feeling the pressure financially in the economic downturn. Family activities are the main casualty, with over half of parents admitting to curbing their spending on holidays and short breaks (52%), as well as reducing spend on leisure and recreational activities (52%).
Parents also say they have cut spending on clothing, savings, furniture and furnishings and food.
Across the UK children receive £4,144 in pocket money between the ages of 5 and 18 years, which is equivalent to £319 each year. However, this is £1,325 less than the total in December 2007 (£5,469), and £1,374 less than the 2006 amount.
Mike Rogers, LV= Group Chief Executive, said: "Every parent knows how their hard-earned savings can dip thanks to eye-watering education and childcare costs. It is also 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 4% up on the 2003 cost."
The survey showed that Outer London is the most expensive place to raise a child with parents there spending £211,977 on raising a child. This is followed by Inner London (£202,644), and East England (£200,274). The West Midlands is the cheapest place to raise a child (£186,641), followed by the North East (£186,818) and the North West (£188,847).