Expensive little treasures cost their parents £163k
CHILDREN may be a blessing but they do not come cheap, as couples with kids spend an average of £6,969 more every year than couples without.
Over 18 years this adds up to an eye-watering £163,175, assuming average inflation of 3 per cent a year.
Perhaps unsurprisingly, parents are more likely to run out of cash at the end of the month and are more worried about debt, according to the latest HL Savings & Resilience Barometer.
Hargreaves Lansdown’s head of personal finance Sarah Coles said essentials such as the family home, gas and electricity, food and petrol all cost more with little ones to cater for. “Life is even harder for single parents,” she added.
While many can get free childcare, huge numbers still could not manage without help given by grandparents.
Most are more than happy to do so for free, but they may be able to get something in return, too, Coles said: “Any grandparents who are under state pension age and looking after a child under 12, may be able to boost their state pension.”
When a parent is receiving child benefit for a child under 12, they automatically get NI credits towards their state pension. If they’ve gone back to work and are paying NI, they will not need it, so they can sign a form to give it to a grandparent offering care.
Coles said: “To get the full new state pension you need 35 years of National Insurance payments or credits. So for a grandparent who hasn’t yet hit this threshold, it’ll boost their state pension.”
Known as Specified Adult Childcare credits, eligible family members can claim by completing form CA9176 if youve provided care to a child under 12 since April 6, 2011.