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Some things in life are priceless, and that includes becoming a parent. But for all the joy, laughter and memories, bringing up kids can also put a financial strain on families.

In recent years, the annual CPAG Cost of a Child report has revealed the rising cost of raising a child to age 18 in the UK:

Full cost over 18 years of bringing up a child in Britain

Given this financial reality, 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.

But is there ever a right time to have kids? We spoke with Charlotte Jessop, founder of The Money Nook, who shared her thoughts. 

After the arrival of a new baby, every parent has their own unique experience when it comes to what happens next. But whether you take maternity or paternity leave, or commit to becoming a full-time mum or dad, those early years often coincide with reduced earnings.

And younger parents – who are more likely to have pre-school age children – often pay the biggest financial price.

But these figures only tell part of the story. According to our survey, parents in London spend the most on childcare per month – £502.33 on average – while parents in Plymouth spend the least (£126.47). Overall, UK parents typically spend £307.80 on childcare each month.

However, the average age of the children whose parents we polled was just under 9 years old. Childcare costs can be considerably higher for parents of young children; 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).

So it isn't surprising to learn that parents are leaning on family members for an average of 1.14 days a week for additional childcare support. Read our full report  on the hidden cost of raising children.

Charlotte Jessop, founder of The Money Nook, tells us how sher and her husband both decided to work part-time hours to save money on childcare. By doing so they actually managed to increase their household income.

While millions of parents get a helping hand from nurseries, nannies, childminders and au pairs, these arrangements don’t always provide total wraparound support. We wanted to get a picture of the childcare settings that parents spend (and depend) on.

While state education is of course taxpayer funded, parents of school-age children still have extra expenses to consider.

• Almost half (47%) of parents told us they’ve been shocked by ‘school-related expenses’ since having children. This was higher than any other child-related spending category, and includes items like school uniforms, supplies and school trip costs.
• Millennial parents (35-44-years-old) are the most reliant on after school clubs – almost a fifth (17%) pay for these childcare services at present.
• When school’s out for summer, the costs start to add up. Parents spend an average of £148.40 on childcare during the school summer holidays. But costs vary considerably, and some parents told us they spend as much as £2,400 on childcare during the summer break.

While school expenditure can take parents by surprise, the cost of out-of-school hobbies and activities can also catch parents off guard. In fact, 41% of parents said they were shocked by the cost of extracurricular activities since becoming a parent.

Most parents we surveyed said their children were taking part in some form of weekly activity. In fact, ‘free activities’ came top in our parents’ top 5 hidden cost hacks -  read the full report here.

Swimming was the most popular weekly activity overall, and this was highest in Liverpool (47%), while in the regions more broadly, Greater London came out top (44%) for swimming. According to LeisureDB's State of the UK Swimming Industry Report 2024, the average cost of a swim at a public leisure centre is £5.59, rising to £6.31 in London, though concessions are often available for children.

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.

But whether our kids are splashing about, whacking a tennis ball or becoming a rockstar in the making, one thing’s for sure – many parents see the value in extracurricular spending. In total, the parents we polled told us they spend an average of £186.08 per child a month on their extracurricular activities.

We spoke with parents (and their children) about the financial strain of paying for extracurricular activities.

While many nurseries offer year-round childcare, when a youngster reaches school age, parents are faced with a new (and often costly) routine. State school children have around 13 weeks of holiday per year, so for millions of working parents and carers, there is a childcare-shaped hole in the diary.

In order to save money, many parents rely on the support of their loved ones. Almost half of parents (47%) placed their child in the care of family or friends during the last school summer holidays. Meanwhile 20% utilised private summer clubs and 11% used state run summer clubs.

Regionally, parents in the North East were the most likely (57%) to rely on family and friends, while those in the South East (39%) were the least likely.

We also found that younger parents were generally more likely to depend on their nearest and dearest. For example, 55% of 25-34-year-old parents used family or friends for assistance during the school holidays, compared to 34% of parents aged over 55.

What’s more, almost a fifth (18%) said they ask family or friends to buy their children Christmas or birthday gifts as a way to manage unexpected childcare costs. And 15% said they borrow money from friends or family in order to pay their childcare bills.

As we’ve explored, managing the childcare juggle is no mean feat. For some parents, the financial repercussions of raising children are significant.

• 44% of parents told us they dip into savings as a way of managing unexpected childcare costs. This was highest in Northern Ireland (54%) and among older parents aged 55-plus (55%).
• 39% of parents said they use a credit card to pay for unforeseen childcare, rising to 47% in the North West and 41% of 45-54-year-olds.
• A fifth (20%) use ‘buy now, pay later’ schemes to meet their childcare needs. Again, this was highest in the North West (26%), while 25-34-year-olds were the most likely (23%) to choose this option.

During a cost of living crisis, it’s understandable that many parents are feeling the pinch. We asked respondents how they improvise when it comes to cost savings.

What would parents tell their younger selves? With the benefit of hindsight, 44% of parents said they would advise expectant parents to ‘start saving as soon as possible’. Other ideas included creating a household budget (30%); reselling toys, clothing and equipment on second-hand marketplaces like eBay (28%); and setting up a life insurance policy (15%).

Charlotte Jessop, founder of Money Nook shares her tips for building financial security as a parent.

For all the costliness of raising kids, the parents we surveyed still go above and beyond to celebrate the family occasions that matter most.

• Among the families who celebrate Christmas, these parents spend an average of £220.80 on festive gifts for their children.
• Parents in the North East are the biggest Christmas spenders – averaging £318.58 across the region, and £320.27 in Newcastle.
• But there’s no getting away from the cost of Christmas. A big majority (85%) of respondents told us that they feel the cost of Christmas has increased for their children in recent years.
• Meanwhile, 74% of parents said they set a Christmas gift budget for their kids, but 43% ‘often go over budget’.