It now costs €169,000 to raise a child in Ireland

Irish Daily Mirror

14-05-2025

The cost of raising a child from cradle to college has jumped by 60% in the last decade, soaring by an extra €65,000. A health insurer survey found that the cost was €105,000 in 2015 – but now costs €169,000, the firm revealed this week.
It has calculated that the costs amount to €15,00 a year, with food, college fees, and rent support accounting for the biggest outlays. Mum-of-two Kel Galavan, who is a financial expert and money coach said the new figures from Laya Life's Cradle to College Cost Index, warned that the costs involved highlight the 'financial landscape for Irish families'.
Several vital elements were factored into the calculations for the two-decade long financial support. These include nappies, baby formula, pocket money, birthday presents, family holidays, communion and confirmation gifts, university fees, and rent support.
A survey spokesperson said: 'The new research shows a dramatic rise in the cost of raising a child in Ireland. A survey of 1,000 parents revealed that the total cost to the average household, to age 21 has climbed to €169,372.85, which is a 60% increase since 2015."
The survey spokesperson added: 'Parents say that the first year of a child's life (23%) and their teenage years (24%) are the most financially demanding on the household budget. Delving deeper and breaking down the data further, it shows the average cost per child, per year, from cradle to college, is €15,324.20. This is an increase of 39% in the last 10 years.'
In 2015, parents said the annual spend on nappies was €3,197.52 but this has now increased by 61% to €5,148. Baby formula has gone from €541.68 a year in 2015 to €1,456 a year in 2025, a jump of 169%. Pocket money accounted for €642.72 of a family's budget a decade ago but this year it has gone up by 86% to €1,196. Rent support is also up, going from €3,320.76 in 2015 to €4,536 this year, a rise of 37%.
But the family spend on birthday presents for a child in 2015 was €499.08 and this is now €148 – a drop of 70%. Similarly, family holidays have fallen by 35% from €1,653.72 in 2015 to €1,079, while communion and confirmation gifts are down from €573.72 in 2015 to €120 this year, according to Laya. University contributions are down by 16% from €4,056.24 to €3,387 in the same period.
The survey spokesperson said: 'Changes in spending over the decade reflect the influence of economic and societal factors on family expenses.'
Money expert Galavan warned: 'These figures illustrate the evolving financial landscape for Irish families. It's becoming increasingly important to consider financial planning strategies. The research demonstrates that families are adapting to increasing costs, particularly for essential goods such as food and baby items, by re-evaluating expenditures on holidays, celebrations, and third level education.
'Worryingly, less than half (48%) of Irish parents have life insurance, leaving them vulnerable should the unexpected happen. This underscores the critical need for families to prioritise financial security and protect their loved ones in the face of these evolving economic challenges.'
Interesting key stats to emerge from the survey's findings include that over half (55%) of parents plan to help their children financially when they want to buy their own home. Around 33% anticipate general support being needed until their children are aged 25 or older.
In 2015, the average age parents expected their children to be fully independent at was 24, highlighting the continued need for parental support well into adulthood, and this remains consistent in 2025. Some 73% of parents said they put too much pressure on themselves to give their children everything.
Despite the high costs of raising children, only 51% have made a savings plan to cover the future costs of supporting their children until they are old enough to support themselves. This is an increase compared to the 2015 Index, when 31% of parents had a future savings plan.
The research also revealed that families are making difficult choices when it comes to larger discretionary expenses. For example, spending is down on family holidays, gifts for life events, and even third-level education. The decrease in university fees paid by parents, which is down by 16%, could suggest that students are increasingly funding their own education through loans or part-time work, according to analysts.
JP Hughes, who is head of Laya Life, which is now part of AXA insurance, said: 'The increase in the cost of raising a child over the past decade reinforces the value of financial planning for Irish parents. Understanding long-term financial security is key, and families need to consider how they can best protect themselves against future uncertainties.'