
The Hidden Financial Costs of Raising Kids
It’s no secret that raising children comes at a financial cost. But while some outgoings are obvious – from nurseries to nappies – new parents can suddenly find themselves counting the cost of lesser-known expenses.

Some things in life are priceless, and that includes becoming a parent. Raising children is one of life’s greatest joys, especially when celebrating key milestones like birthdays or holidays. However, with living expenses at an all-time high, some parents have been caught off guard by unexpected costs. And younger parents – who are more likely to have pre-school age children – often pay the biggest financial price. In fact, Coram’s 2024 Childcare Survey reported that the average cost of a part-time nursery place for under 2s in Great Britain is £157.68 a week (£630.72 a month). Meanwhile, Coram estimates that an average full-time place for parents of under 2s costs £302.10 a week (£1,208.40 a month).
Given the financial reality of becoming a parent, it’s perhaps unsurprising that many people are putting off parenthood. According to the latest ONS data from 2024, the fertility rate in England and Wales has also fallen to the lowest level since records began in 1938.
A recent Legal & General study has been conducted to examine how parents are feeling the strain of hidden expenses in raising children. The study, involving over 2,000 UK parents with children aged 16 and under, reveals both the hidden costs and the ways families are making the most of every moment.
Overlooked Costs of Raising Children
In the UK, the cost of raising a child to age 18 is £260,000 for a couple and £290,000 for a lone parent, according to Child Poverty Action Group. While these figures are important, understanding and planning for unexpected costs can help families manage these challenges with confidence. Parents spend an average of £307.80 a month on childcare (the average age of children was just under 9). This figure was highest in London (£502.33) with nearly half the parents we surveyed said they’ve been shocked by ‘school-related expenses’. It was found that Plymouth spend the least (£126.47).
The survey revealed parents are finding resourceful ways to manage childcare costs, often balancing multiple strategies. While 44% of parents dip into their savings and 39% turn to credit cards to cover expenses, many are also leaning on their support networks. During school holidays, nearly half of parents rely on family and friends for childcare—a number that climbs to 57% in the North East, highlighting the importance of flexible, community-based solutions.
Costly Hobbies
Extracurricular activities are an important part of a child’s development and wellbeing, offering opportunities to learn new skills, build confidence, and make lifelong memories. However, 41% of parents admit they were surprised by the costs involved.
Swimming emerged as the most popular activity, with nearly half of families in Liverpool (47%) and Greater London (44%) prioritising lessons each week. On average, parents are investing £186 per child per month in these activities—demonstrating a strong commitment to their children’s growth and happiness.
Of course, some hobbies are more expensive than others. For the 6% of parents whose children participate in horse riding, the costs can add up. While prices vary across the UK, horse riding lessons often cost between £30 and £50 per session.
Tips for Tackling Family Costs: Practical Ideas from UK Parents
To adapt to the rising costs of parenthood, parents are sharing resourceful tips and strategies, which can inspire other families to make the most of their budgets:
- Embrace Free Activities: Over half (51%) of parents find creative, free activities for family fun, showing that some of the best memories don’t come with a price tag. From local libraries to youth clubs, you can browse your local council website to source free activities.
- Seek Second-Hand Finds: From clothes, to toys, 37% of parents opt for second-hand purchases, proving that quality doesn’t have to mean brand new. Charities such as Oxfam and the British Red Cross have a great selection of second-hand gifts to purchase.
- Tap into Support Networks: For childcare needs, especially during summer holidays, one-third (33%) of parents turn to trusted friends and family for help, showing the power of community support.
With rising living costs, many parents encourage expectant families to plan ahead. In fact, 44% recommend starting to save as soon as possible to prepare for hidden expenses.
From starting a savings plan to budgeting and taking out life insurance, Legal & General’s survey highlights practical steps families can take today to prepare.
Paula Llewellyn, Chief Customer and Strategy Officer for Legal & General Retail comments: “Raising children brings unparalleled joy, but it can also come with unexpected costs. Our survey sheds light on the hidden expenses that parents often face and highlights the strength of family and community support.
“At Legal & General, we aim to raise awareness of these hidden financial burdens and emphasise the importance of proactive planning. Life insurance and thoughtful financial strategies are essential tools in securing long-term financial stability and peace of mind for families.”