14-05-2025
The cost of raising children soars to astronomical figure
Get ready to tighten the belt if you're planning to have children – they now cost a massive €169,000 each to raise from cradle to college.
The costs have risen by over €63,000 in just ten years, a 60% increase, which was described by one family finance expert as 'dramatic'.
The first year of a child's life is the most expensive and eats up almost a quarter of the child-rearing bills. Finance expert and mother of two, Kel Galavan, said: 'There was massive inflation around the Covid time (2020 to 2022), so that bumped up the price of things. Stock Image of a father enjoying quality time with his children. Pic: Getty Images
'The thing with raising a child is things like nappies and baby formula, they're a really acute moment-in-time cost you can't do without. That first year of life is 24% of the cost of raising a child.'
Some of the costs have almost trebled over the past ten years. A year's worth of nappies jumped from €505 in 2015 to €1,456 now, baby formula spiralled from €542 a year to €1,456, while a year of pocket money almost doubled from an average of €643 to €1,196.
However, some costs have fallen. University and college fees have dropped from €4,056 a year to €3,387, which is a 16% decline. Stock Image of a mother enjoying quality time with her son. Pic: Getty ImagesPic: Getty Images
Families are also cutting back on much of their discretionary spending to cope with the price rise for essentials.
The amount spent on family holidays dropped from €1,654 to €1,079 a year, a 35% decline, while spending on Communion and Confirmation gifts saw the most dramatic fall, going from €574 a year to just €120, a 79% drop.
Spending on birthday presents also saw a major drop, falling from €499 a year to just €148, a 70% decline. Children making their Holy Communion. (Stock Image) Pic: Shutterstock
However, the overall average cost of raising a child to 21 has risen to €169,372.85, a 60% increase since 2015. The first year of a child's life, at 23% of the total costs, and their teen years, at 24%, are the most expensive.
The cost per child, per year, from 'cradle to college', is €15,324.20, an increase of 39% in the past decade, the Laya Life research found.
However, families with more than one child save through 'hand-me-downs' on clothes and uniforms, but some things are not recyclable. Pic: Shutterstock
Families are also cutting back on holiday costs by switching trips abroad for stays in Ireland.
Ms Galavan, who has a 14-year-old daughter and 12-year-old son, said: 'Staycations became really popular there, partly because of Covid, but also the general cutting back on things.
'Also, some families used to have two holidays a year, and now they're just having one.'
She said the fall in spending on birthday presents and Communions was 'really significant because… You want to give them everything and have those special types of days, but 79% and 70% drops, that's done out of necessity'.
A smartphone is also now a necessity for teens, often to access Google Classroom for homework, adding further expense for parents.
The results were based on an online survey of 1,000 parents by Empathy Research. Laya Healthcare is now part of AXA Insurance.
