Dec 7 2007
Making a financial plan and saving for the future are important in ensuring that parents can afford the costs associated with raising a child, insurance and investment group LV= has said.
In the society's Cost of a Child survey, it was revealed that the current spend for parents from a child's birth to the age of 21 is estimated at £186,032, a figure that is expected to rise to £265,000 by 2012.
With £47,310 allocated to education and more than £5,000 spent on pocket money, a child trust fund could be a good way of saving for the future cost of raising a child.
"Every parent will tell you that it is all worth it, but making even small provisions and doing a little extra planning now could help new parents see their way more easily through the next 21 years," said Nigel Snell, communications director at LV=.
Research released earlier this year by Sainsbury's bank revealed that the average interest return on a child trust fund - which are kick-started at birth with a £250 voucher from the government - is 5.63 per cent.
