Couples with children spend an average of £6,969 more each year than couples without

New research by Hargreaves Lansdown has found that couples with children spend an average of £6,969 more every year than couples without.

Over 18 years, assuming 3% inflation, this adds up to an eye-watering £163,175. The research also found that parents are less likely to have enough cash at the end of the month, enough emergency savings, or enough life insurance than non-parents. They’re also more worried about debt.

Sarah Coles, Head of Personal Finance at Hargreaves Lansdown “Having children is one of the most expensive decisions a person can make. Couples with kids spend an average of £6,969 more every year than couples without – which over 18 years, after inflation, comes to £163,175. And as a result, their financial resilience suffers across the board. For single parents, life is even tougher, and they face far lower resilience on almost every measure. It means we need all the help we can get.

“Some estimates of the cost of children simply add up everything extra you have to spend on them. This approach also takes account of the massive spending sacrifices parents make along the way, and still finds that parents face huge additional costs. Even when you break it down to the absolute essentials of keeping a roof over your head, the lights on and everyone fed, couples with kids spend more than a fifth more than those without (£2,605 a month vs £2,143), and single parents spend over a fifth more than those with no children (£1,470 vs £1,227).”