R90 000 a year for a child
STARTING a family comes with a lot of added stress on the would-be parents. In South Africa it costs a staggering R90 000 a year to raise a child.
Financial planner Sydney Sekese of the Financial Planning Institute says research indicates that in 2017 it will cost parents R90 000 a year to raise a child and parents need to be mentally prepared for the journey ahead.
“Raising a child is not cheap or easy. One must have a solid financial plan in place to ensure that you can give your children the best life possible and prepare them well for adulthood,” he said.
He said some children lived with their parents until the age of 23, and that equated to R2.7 million.
“The monthly costs to be factored in depend on the lifestyle, household income, money management and attitude of the parent. The main costs are education, clothing and pastime activities, such as ballet classes, playgroups and soccer clubs.”
He said for those parents who could afford it, the entertainment expenses of various gadgets and toys needed to be factored in as well.
“Most parents are ignorant of the various expenses of raising children. Having a plan in the form of a budget is a great way of managing expenses to ensure that parents are living within their means,” he said.