Raising children has never been cheap, but new research suggests that the endeavour is becoming even more expensive. Because of the pressure placed on their finances, parents may find they need to take advantage of no credit loans such as guarantor loans to help them achieve their goals.
For example, if they are planning a break away for them and their youngsters, mums and dads may require extra cash. Meanwhile, getting a reliable car to help ferry their loved ones around is also often important, and without the extra money made available through loans, this could be impossible.
A report by LV= suggests that the cost of raising a child from birth until their 21st birthday has gone up to more than £218,000. This was a rise of 3.3 per cent on the last survey. Also, the firm suggested that simply getting a child through the first year of its life now costs an average of £10,261.
The insurance specialist pointed out that these figures may make gloomy reading for cash-strapped consumers around the UK.
At present, many people are experiencing financial problems and this may lead to a spike in interest for no credit loans, including guarantor loans.
LV= noted that with university fees set to rise to up to £9,000 a year, the cost of putting youngsters through higher education is adding to the pressure. Along with studies, childcare was identified as a major cost for parents.
Commenting on the issue of education, head of protection at LV= Mark Jones said: “Our report shows education costs have increased dramatically, and despite financial pressures many parents are seeking out savvy ways to ensure they can still afford their children’s higher education prospects. With tuition fees increasing this year we expect to see more parents making significant cutbacks across the family budget to accommodate this.”