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Irish Daily Mirror
14-05-2025
- Business
- Irish Daily Mirror
It now costs €169,000 to raise a child in Ireland
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.'
Irish Independent
13-05-2025
- Business
- Irish Independent
Cost of raising children shoots up putting huge pressure on families
It now costs families around €15,000 a year to bring up a child in this country. This is up 39pc in the last 10 years, research by Laya Life, a division of Laya Healthcare, has found. Nappies and baby formula are showing the largest increases, with a huge rise in pocket money and food costs for families with teens. Higher costs for families reflect the relentless inflation that has caused a cost-of-living crisis for all households, due to Covid restrictions and the energy shock caused by the Russian invasion of Ukraine in particular. However, there has been a big fall in the costs for families of Communions and Confirmations, possibly indicating a move away from religious observance. Researchers at Laya Life looked at the cost of supporting a child from birth to college age. They found a sharp rise in the cost of everything from nappies and food to rent support. The survey, which questioned 1,000 parents as part of the Cradle to College Cost Index, found the most financially demanding years for parents were the first year of a child's life, and their teenage years. Among the major cost increases for parents were food, which has seen a 61pc increase in the past decade. Food has been costed at €5,148 a year for a child, up from €3,197 a decade ago. ADVERTISEMENT Pocket money has risen by 37pc to €4,536 a year from €3,320. But there has been a fall in spending on discretionary items such as holidays. Spending on breaks is down 35pc compared with 10 years ago. Expenditure on gifts for life events such as Communions was also lower. And spending on third-level education had also fallen, with 16pc less spent by households. This possibly reflects the fact that recent Budgets have seen a €1,000 reduction in the student contribution fees. Future planning has improved. One in two parents make a savings plan to cover future costs associated with supporting their children. That was up from one in three in the last index, Laya said. Head of Laya Life JP Hughes said: 'This 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.' More than half of Irish parents said they planned to help out with their child's future purchase of their home. Some 30pc of parents expect to support their children until they are 25 or older. The research found that seven in 10 parents say they put too much pressure on themselves to give their children everything. Despite the high costs of raising children, only half of the parents who responded to the survey have made a savings plan to cover the future costs of supporting their children until they are old enough to support themselves. But this is an improvement compared with the last Laya Cradle to College Cost Index where only one in three parents had a future savings plan. Laya Life conducted the survey as it offers life insurance and mortgage protection.
RTÉ News
13-05-2025
- Business
- RTÉ News
Raising a child in Ireland now costs €169,000
A new survey shows a dramatic increase in the cost of raising a child - from birth to the age of 21 - in Ireland. Laya Life's 'Cradle to College Cost Index - a survey of 1,000 parents - reveals that the total cost to the average household has climbed to €169,372.85, a 60% increase since 2015. Parents who participated in the survey said the first year of a child's life and their teenage years are the most financially demanding on the household budget. The survey shows the average cost per child, per year, from cradle to college, is €15,324.20 - an increase of 39% in the last ten years. It reveals that the cost of nappies had soared by 188% to €1,456 this year from €505 in 2015, while the cost of baby formula surged 169% to €1,456 from €541. The cost of food is up 61% to €5,148 from €3,197 while pocket money has risen by 37% to €4,536 a year from €3,320. But the cost of family holidays has fallen by 35% to €1,079 from €1,653 while the cost of birthday presents are also down substantially, falling by 70% to €148 from almost €500. The cost of university and third level college fees has also decreased, falling by 16% to €3,387 from €4,045, Laya noted. Money coach Kel Galavan said the figures illustrate the evolving financial landscape for Irish families, adding that it is 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," she said.
