55k cost to raise a child to school age?

[User135792468]

Is this a realistic amount? Current debate with Dh as we’re debating if we can afford another dc. The cost of living is biting and with previous Dc, we didn’t really plan financially as (very luckily), we didn’t need to as we absorbed the cost.

Breakdown as follows:

• 15k loss of earnings during mat leave (different for everyone but based on difference between part time earnings and mat pay)
• 25k - childcare 3 days a week from age 1 to starting school (will vary based on birth month)
• 15k - everything else (nappies, wipes, formula, clothes, equipment)

I would say this is a very conservative amount as for some families it could be much more with working parents but for some it would be less as a sahp (loss of potential earnings still applies though).

Please let know your thoughts on the amount and if you would say more or less, how you calculated it and the breakdown.

The childcare amount is based on prices in the SE.

I think £15k on nappies wipes and clothes for a preschooler is massively over egging things. I’d be thinking about £3k and that would be generous!

It probably didn’t cost us that much in money spent, but definitely in money lost by not earning. Possibly more when you consider the long term impact on my career. 2 years missed work on a 20k salary is 40k.

We spent £0 on childcare after I had DS2. But probably lost about £25k in earnings whilst I was part time.

You've also got to factor in childcare costs when they're in primary school as well. Wrap around and holiday cover is usually needed. It's only been since WFH and my kids getting older that we've been able to ditch this. Wraparound care was around £600 pm for us and summer holidays were £1k per month.

Childcare cost seems conservative; Mat leave cost I presume is accurate for you; the 15k is £3300/year assuming child goes to school age 4.5 (average!). Which is about £64/week - might be a bit on the high side for a second child? You’ll already have lots of stuff you’d need, and they don’t eat much when little.

Bigger costs would be if you want to move house for more rooms etc.

Why do you need or want to calculate the total cost? You don’t pay for it all upfront.

Childcare looks low for SE. DDs nursery charges £75 per hour (Herts)

£15k for ancillary costs seems high.

25k - childcare 3 days a week from age 1 to starting school (will vary based on birth month)
15k - everything else (nappies, wipes, formula, clothes, equipment)

Both these costs seem far too high to me.

Regarding childcare, there is the 15 or 30 free hours, plus tax free childcare. And many settings don't charge anything like that cost (what daily rate are you basing this on?)

Regarding equipment, I used cloth nappies and wipes, breastfed, and bought clothes Preloved, or they were passed onto to me. Same for the majority of toys.

£15k for nappies, clothes etc seems very high. I'm not that out of touch!

Personally I used cloth and breastfed so expenditure was low

If it is £64 pound a week for all costs as a PP says - I think that sounds about right. There will be less costs involved if the older child is closer in age as a lot of items can be reused and also a lot of activities can be shared. When you add up the costs involved in travel and participation in day trips and holidays, birthdays and Christmas, educational toys and even the added fuel to travel to childcare etc it will add up (I live rurally!). Food will be a relatively low cost as you already have DC. Babysitting (if you use this in the evenings) will go up.

Also, I'm assuming you have suitable space to house the child? You wouldn't need to move to a bigger home - Because that could be a significant cost? I'm also assuming you wouldn't need to purchase a bigger car?

It is hard to predict all the costs as some people will naturally spend more on their kids than others - but the amount seems reasonable.

I think if you want to calculate it out you need to factor in how long you want to work for , retirment, contingency for illness, divorce etc.

Some people saying they lost thousands being at home, are they able to work for two years more at the other end of caarer.

Plus unexpected expenses like Sen needs .

Are you including the extra child benefit you'll receive?

Agree.

You can expect £15-20k childcare costs per year per child if sending them five days a week.

£15k for other stuff is very high I think. And there’s a good resale market for a lot of stuff too especially some very expensive items like prams.

We once calculated how much DD had cost us as she asked us (never asked again, ha!)
Nursery fees alone the first 3 years were more than your £55k. But that was full time and in London (8 to 5 years ago). If we hadn't had nursery fees and one of us had quit our job in lost earnings it would have been a lot more than £55k too.

I think that’s not an unreasonable estimate, not least because I used loads more heating on mat leave and when feeding babies overnight

Ah yes but age 3, you get the 30 free hours as long as neither of you are earning over £100k pa. This will really cut the cost down - potentially by half or two thirds depending on how your childcare provider calculates the hours.

Plus £87 per month child benefit as long as neither of you are earning over £60k pa.

We added up lost career potential too so getting the next promotion a couple of years later. If you're really going for it don't forget reductions to pensions and savings interest.
There is an offset on childcare too - while I'm on mat leave my older kids don't need so much paid childcare which is saving us about £500 a month.

Child care costs are not too high. OP will get 30 free hours (unless exceptionally high earner) and tax free childcare

If it always did cost that much, many, many people would never have children. It doesn’t sound like you are massively struggling and you only have one DC at present. Some decisions just have to be made by the heart ❤️

Thanks for the replies. To answer a few questions and comments.

We wouldn’t have any additional housing or car cost.

The mat leave figure is the difference between my mat leave pay and salary. We wouldn’t be entitled to child benefit.

It would be dc 3 - there are things that could be reused but things are looking worn now they have been used by 2 dc. Clothing would depend on gender and season. Plus toys, books etc.

I calculated the childcare based on our current nursery fees, taking into account the different price per age and then deducting tax free childcare and then the reduced cost when 30 hours kicks in. We also only need childcare in term time for 3 days a week. For those saying it’s high, that is the minimum cost without taking into consideration fee increases which are inevitable.

The 15k includes everything from prams, bedroom furniture, day to costs, nappies, wipes, formula, car seats and every other thing going. I think 3k a year is very conservative and is easily surpassed.

To those wondering why we’re having the conversation, dh is saying that for a third baby, he wants to plan financially and have the childcare costs and mat leave salary difference in additional savings before baby is born so these aren’t taken out of salary. He is basically saying that he doesn’t want our lifestyle to change as he doesn’t think it’s fair to our current dc and he enjoys nice holidays, days out etc. Our day to day costs will naturally go up with an additional family member. It’s hard as I do understand where he’s coming from but I don’t look at it so clinically. He’s a planner, I’m more of a, it’ll be fine kind of person.

everything from prams, bedroom furniture, day to costs, nappies, wipes, formula, car seats and every other thing going. but surely you have most of this?

The 15k includes everything from prams, bedroom furniture, day to costs, nappies, wipes, formula, car seats and every other thing going.

If this is dc3, then you will already have all this.

If money is tight, you don't need to take such a long maternity leave.

I think you are wildly over estimating the cost of consumables.
I know the child benefit balanced out formula and nappies when mine were babies, then once on to 'normal food', you just stretch things a bit further - it doesn't increase your food bill by 1/4 to squeeze a 3rd dc in.

Oh right. I have three and the third child is the cheapest so far as we were quite well set up. We've only really needed to spend a few hundred getting set up with new maternity gear where old bits had worn out and a couple of repairs to previous gear for the baby. Unless you have a massive gap you'll be able to reuse loads anyway. I've also been amazed how much we've been handed down by people who are done having kids so gender and season makes less of a difference.

God I wish I hadn’t done this calculation.