Cost of raising child at least €120,000

IT costs at least €120,000 to bring up a child from birth to the age of 18. And that's just for the very basics.

The calculation was made by John Geraghty, CEO of LA Brokers, himself the father of two young children.

The estimated costing works out at 65% more than one he made in 1995 and does not include the cost of going to college.

Mr Geraghty said he concentrated on the basics to show how financial security should be a priority once children arrive.

“The working climate has changed. Both parents are now living fast and working hard to make ends meet and they have to pay for that privilege,” he said.

Childcare charges alone, for some parents, will amount to at least 62,000 by age 12. That’s based on a flat payment of 100 a week, 52 weeks of the year.

Food costs alone based on 7 a day up to age 18 will amount to almost 46,000 and that’s conservatively estimated on a child eating at home.

Mr Geraghty also included minimum payouts for clothes, pocket money and entertainment which brings the bill well past 120,000.

“People really just need to see the total because the costs are increasing all the time. What I have given is really a baseline figure for them to work from,” said Mr Geraghty.

Anne O’Connor, child psychologist and founder of the Irish parenting internet site Rollercoster.ie, pointed out that over 80% of parents were spending more than 63 a week on childcare with 45% faced with a weekly childcare bill of more than 100.

A number of parents who took part in her website’s childcare survey said they could not afford to have another child largely as a result of the high childcare costs.

The survey also showed that many parents were worried that they were not giving their child the time and attention they need and are exhausted when they are with them - all because of financial commitments.

Ms O’Connor said the current childcare situation was shameful given that Ireland was perceived as such a prosperous country.

The future is not looking any brighter. A number of crèches are now planning to increase their costs in the autumn. One crèche owner said rising costs left them with no option but to put up their prices.

Ireland has a low rate of State-funded crèches and has no tax relief for childcare. The current administration has opted for child benefit instead of tax relief to help parents.

According to the Irish Congress of Trade Unions (ICTU) the average industrial worker is currently spending up to 25% of their gross weekly income on childcare costs.

Their survey showed that expenditure on childcare ranges between 102 to 126 with almost 45% still relying on workers in the black economy.

Most use childminders in the home and only 10% send their children for care in crèches and nurseries.