The financial burden of raising a child in the UK has climbed to a record £249,000, according to our new research featured in The Times. The figure – calculated in today’s prices – represents an increase of £26,000 since our previous analysis in 2023, and a £46,000 rise compared with 2022.
Average annual spending now stands at £13,830 per child, with lifetime costs ranging widely from £161,000 for budget-conscious households to £426,000 for families at the higher end of spending.
Rising costs outpace inflation
Our two-year study examined more than 150 child-related items across three price brackets. It found overall costs had risen 10.7%, sharply outstripping the 6.1% increase in the Consumer Price Index (CPI) over the same period.
This widening gap underscores the growing financial strain on households – a trend reflected in the record-low fertility rate of 1.41 children per woman in England and Wales in 2025. Economic uncertainty and escalating living costs appear to be central factors shaping parents’ decisions about family size.
Technology and cultural activities drive the steepest increases
Some of the most significant price jumps were found in technology, gaming, and socio-cultural activities.
- Socio-cultural activities – including concerts, theatre, cinema and music lessons – rose 12.36%, nearly double the pace of CPI. Average lifetime spend now sits at £4,712.
- Tech and gaming devices have become near-essential, both for education and social life. Mid-range device costs rose from £5,000 (2023) to £6,125 (2025), and can reach over £13,000 for high-end products.
Surprisingly, one category bucked the upward trend: subscriptions. Prices fell modestly thanks to the proliferation of cheaper ad-supported plans. As a sign of the times, the typical basket now includes an OpenAI subscription, reflecting the rapid normalisation of AI tools in children’s education and social environments.
The importance of financial planning
Our Head of Investment Consultants, Chris Rudden, says: “Looking ahead, if current trends continue, families could be facing costs of over £300,000 by the end of the decade, making it more important than ever to plan ahead.
“By starting to save and invest regularly, even modest amounts, parents can help offset these rising costs and give their children the best possible start, while also protecting their own long-term financial security. Despite these challenges, the investment parents make in their children, both emotional and financial, pays dividends for a lifetime.”
The teenage years: now the most expensive
Spending accelerates sharply during adolescence. Parents of 15- to 18-year-olds now spend an average of £65,016 – up almost £8,000 since 2023.
Key spending categories include:
Tech & Subscriptions
- Subscription services (ages 6–18): £3,848, slightly down from 2023.
- Tech devices (ages 6–18): £6,125, up from £5,101.
Clothing
Clothing costs for teenagers have risen to £4,137 for ages 15–18. Total clothing spend to age 18 is now £13,893, up nearly 10% in two years.
School Uniforms
A relatively stable cost, rising marginally to £1,416 over 18 years.
Sports & Cultural Engagement
- Sports activities: £16,910, up 11.7%.
- Cultural and social activities: £4,712, up 12.4%.
Health, Beauty & Personal Care
Teenagers’ grooming and skincare spending has doubled, reaching £1,182 per year for 15- to 18-year-olds.
Childcare
Childcare continues to be one of the largest burdens:
- Nursery costs (ages 0–3): £34,250, up 12.4%.
- Total lifetime childcare including after-school clubs, camps and babysitting: £76,911.
Pocket Money
Pocket money allocations reflect both inflation and growing emphasis on financial literacy. A medium-range estimate now totals £9,095 by age 18 – an 11.3% rise since 2023.
Looking ahead: costs could rise to £311,000 by 2030
Based on Bank of England and OBR forecasts, if child-related expenses rise in line with expected inflation, the total cost of raising a child will reach £280,000 by 2030.
However, if the Moneyfarm “child-cost basket” continues growing at its recent rate – roughly 2.15% above CPI per year – families may instead be facing a £311,000 bill by the end of the decade.
For families looking to prepare for these rising costs, regular saving and investing can make a significant difference. For example, if a parent puts aside £300 a month from birth until age 18, they would contribute a total of £64,800. But with the power of compounding, that “piggy bank” could grow much further – helping to cushion future expenses and easing financial pressure at a time when costs show no sign of slowing.
*As with all investing, financial instruments involve inherent risks, including loss of capital, market fluctuations and liquidity risk. Past performance is no guarantee of future results. It is important to consider your risk tolerance and investment objectives before proceeding.
