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.

Re the £15k budget, I can see how things could add up if you bought everything new but you can get some very good quality furniture / clothing etc second hand via eg eBay, Facebook market place. My local FB freebay page is very handy! That's the one part of your budget I think you could flex.

15k loss of earnings during mat leave (different for everyone but based on difference between part time earnings and mat pay)

Would you not get a pay rise?

25k - childcare 3 days a week from age 1 to starting school (will vary based on birth month)

Under estimate in London and SE? Also even outside these areas childcare providers are putting up their fees to cover the increase in energy and food costs. So that cost is unpredictable.

15k - everything else (nappies, wipes, formula, clothes, equipment)
That's 3K per year. As it is your 3rd child you would spend less as you would reuse clothes and equipment. Also depending on whether your friends have finished their families they may give you items they can't sell on plus as PPs said you can get second hand stuff.

Jealous of your childcare costs!! It’s almost exactly half mine

I think this is a strange way to think about the affordability of a child though. surely you don’t pay for them as a lump sum? Wouldn’t it be better to calculate a. Can you afford mat leave and b. Can you afford the monthly cost once back at work. Plus considering aside from that whether you need a new car (can’t get 3 car seats in a standard car) and whether you need to move. Overall cost until school age isn’t that useful surely?

I suppose it is expensive but we don't pay it out all at once. Does it matter?

Having children is a choice, most of us like it and don't count the cost.

That wouldn’t cover it in SE London. I calculated with our first born full time nursery for him alone was 55k

Given this is only 3 days a week of nursery, what daily rate are you using? In my nursery, this would be free once a child turns 3 other than food costs, due to the 30 free hours.

While the equipment cost is very high, I would add a separate 'entertainment' cost. Admission to places on days out, activities etc. This can be reasonably significant depending on the family.

I agree.
Surely any "affordability test" is about if you can afford the extra costs incurred each month, not some plucked from the air total of how much more you will be paying out over a number of years.
If you want to know how much a child costs you until they stop costing you anything, I've got news for you, you will need to be thinking about 25 years rather than 5. But it is just such an odd way to look at a decision that is surely also about love and family and the whole emotional side, not a purely financial thing.