Cost of Being a Parent

In my previous blog I referred to purchasing supermarket branded products over well-established house hold names, not an exhaustive list but for the products below we opted for Sainsbury’s own;

  • Frozen Chips
  • Frozen French Fries
  • Frozen Garden Peas
  • Bottled Water (x2 bottles)
  • Tissues (twin pack)
  • Foil

Just on those 6 items above we saved £4.70 if you extrapolate that across the year that would represent £244.40 a year saving – however anyone who is using 30 metres of Foil a week has a serious issue. We have noticed no difference at all in quality or performance and I am sure on a different weeks shop we could have achieved an even greater saving.

However back to the more pressing issue – the arrival of the twins or as I like to politely refer to them “the wallet destroyers” a recent report in the Guardian Newspaper stated that the average cost of raising a child from birth through to the age of 21 is £229,251 a year or for my American followers that’s $357,985 (based on todays exchange rate)

Break Down Sterling £ Dollars $
Annual Cost 10,917 17,047
Monthly Cost 910 1,421
Weekly Cost 209 326
Daily Cost 30 46

 

So using the above calculation it’s costing us as a family unit £90 per day, or £32,751 annually whereas the average salary is the UK is £26,500. I wonder how my children will react when at the age of 21 they are presented with an invoice, I am sure this would be at first just laughed off, yet reality would soon kick in 3 months later when the bailiffs arrive with a county court judgement demanding either payment in full or at least a payment plan.

Life has become so expensive over the last decade our parents never endured the current prices we are experiencing – below are a couple of examples to put things into perspective.

Item 1985 2015
1 Litre of Fuel £0.42 £1.13
Average House Price UK £34,377 £188,566
1 Pint of Milk (Semi Skimmed) £0.22 £0.45
Average Price of a Car £11,627 £28,428

 

The average wage in 1985 was £8,890 so compared to todays we have seen a £17,610 increase or £880 increase per year. We must also consider that in 1985 VAT was set at 15% and not the current 20%. We must also consider the increases in both Income Tax, Council Tax and quite frankly all the other taxes that the Government decides are fair (in their opinion).

Society has changed and the available technologies have created a new expenditure that didn’t exist in 1985 families are now riddled with SKY TV, Tablets, Mobile Phone, Home Broadband all of those mentioned previously could see a monthly expenditure of between £75 – £150 depending on the subscription packages that you have committed too.

Life is expensive and you can never earn enough – how many of us spend beyond our means on a daily basis, life is a struggle. But it’s what you make of it that really counts and I plan to spend my £687,753 on a villa by the sea drinking copious amounts of champagne and enjoying what time I have left – KIDS YOU HAVE BEEN WARNED!!!!