The cost of raising a child has risen by 60 per cent in the past decade, new research has claimed, with the total cost now standing at an average of €169,000.
The research from Laya Life looked at the cost of supporting a child from birth to college age, with costs for everything from nappies and food to rent support climbing.
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 61 per cent increase in the past decade, while spending on baby formula has also risen sharply.
Families are also paying out more in pocket money to children, which has increased by 86 per cent, while rent support for older children has risen by 37 per cent.
The average cost for raising a child per year, has climbed almost 40 per cent to €15,324.20 in the past decade.
However, spending on discretionary items was lower, with holiday spending down 35 per cent compared with a year ago.
Spending on gifts for life events such as communions was also lower, and spending on third-level education had also fallen, with 16 per cent less spent by households.
Future planning has improved, with one in two parents making 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.
“This increase in the cost of raising a child over the past decade reinforces the value of financial planning for Irish parents,” said head of Laya Life, JP Hughes. “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, with 30 per cent expecting to support their children until they are 25 or older.
