Essentials and indulgences

UK parents spend £28 billion on nation’s under-fives each year

UK parents spend around £35,000 on their children by the time they reach their fifth birthday, according to research released by Aviva. This adds up to a total of more than £28 billion[1] spent on the nation’s 4 million under-fives each year.

Varying expenses
The study of more than 2,000 parents with children aged 0-5, discovered that parents typically spend £7,026 a year – or £586 a month – on essentials and indulgences for their youngsters. This includes the cost of everything from basics such as nappies and milk formula, to extras such as toys and baby ballet classes.

The cost of raising children to age five also differs widely across the country, with parents in London paying more than double the amount paid by parents in Wales and the North West.

Those in the capital say that they pay an average of £894 per month – or £10,731 per year. This is in comparison to a more modest £408 a month (or £4,901 annually) in Wales.

Under considerable pressure
The research also revealed that parents feel under considerable pressure to spend on their youngsters. One in five (18%) say they feel compelled to spend in order to keep up with other parents. This is perhaps fuelled by the fact that more than a third (36%) of parents questioned say they know other parents who boast about how much they spend on their children. However only a modest one in seven (14%) admit to giving in to their children’s demands and buying things they don’t really need.

Making financial plans
There is good news in that many of these parents with youngsters under six have made financial plans for their children’s futures, with more than half (52%) having opened a savings account in their children’s names, while 37% have opened a Junior Individual Savings Account (ISA) or a Child Trust Fund. A forward-thinking 8% have started saving for a house deposit for their children and the same have started a university fund for them.

Source data:
[1] Research carried out by ICM, surveying 2,002 parents with children aged 0-5 in November 2014. Figure compiled by multiplying the number of children aged under five in the UK, according to ONS mid 2013 data (4,013,861) by the average annual cost spent by parents on under fives annually (£7,026).
[2] Costs are based on mean averages across all respondents, although some parents will pay considerably more for certain expenses (such as childcare) while others will pay less.


LMJ Financial Management Ltd is authorised and regulated by the Financial Conduct Authority to provide investment advice and is bound by its rules.

The material on the site is the copyright material of LMJ Financial Management Ltd. You may not copy, reproduce, republish, disassemble, decompile, reverse engineer, download, post, broadcast,transmit,make available to the public, or otherwise use LMJ Financial Management Ltd's content in any way except for your own personal, non-commercial use. This includes, but is not limited to all individual fund manager data such as rankings or fund managers and ratings of fund managers. LMJ Financial Management Ltd does not accept any liability for your reliance upon, or any errors or omissions. Any other use of LMJ Financial Management's content requires the prior written permission of LMJ Financial Management Ltd.

LMJ Financial Management Ltd, Upper South Hall, Bullen Farm Business Centre, Bullen Lane, East Peckham, Tonbridge, Kent, TN12 5LX
Tel: 01732 874111 Fax: 01732 874222 Email:

©2013 LMJ Financial Management 2013.
Cookie Policy
l Privacy Policy l Disclaimer


HTML5 Powered with CSS3 / Styling, and Semantics