Cost of raising a child from 'cradle to college' has grown 60% in 10 years, study says

A decade ago, parents were spending €3,197 on average on food for their children each year. This has increased 61% to €5,148, according to the survey. File picture

The cost of raising a child from “cradle to college” has risen a staggering 60% in the last decade to just under €170,000, a new survey has found.

Furthermore, almost three in four parents (73%) say they put too much pressure on themselves to give their children everything as household budgets continue to be squeezed.

The survey for Laya Life of 1,000 parents found that they are split on what years are the most financially demanding on the household budget, with 23% of parents saying the first year of their child’s life compared to 24% who say it’s the teenage years.

The figures suggest that the average cost per child per year in Ireland, from when they are a baby to when they become adults, is €15,324.20.

To arrive at the figure of €169,372.85 to raise a child to adulthood in Ireland, the survey multiplied this average figure by 21 years and then divided by the average number of children per household (1.9) according to the Central Statistics Office (CSO).

Where does the money go?

In terms of where the money goes, the survey provided a breakdown to show were spending has risen sharply, and some places where it has fallen, since 2015.

A decade ago, parents were spending €3,197 on average on food for their children each year. This has increased 61% to €5,148, according to the survey.

According to the latest consumer price index from the CSO, households are facing surging prices for some staples well beyond the headline inflation rate of 2.2%, with milk (up 12.4%), butter (up 16.4%) and beef (up 12.9%) all rising sharply.

Nappies and baby formula have also surged by 188% and 169%, respectively, to an average of €1,456 each a year. Pocket money has also risen significantly, with parents doling out €1,196 on average a year compared to €642 a decade ago.

For those older teenagers who may be living away at college, rents have also risen from €3,320 a year in 2015 to €4,536 in 2025.

On the other hand, parents are now saying they are spending less than they did 10 years ago on other items such as communion and confirmation gifts (down 79% to €120), family holidays (down 35% to €1,079) and birthday presents (down 70% to €148).

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Looking further ahead, over half of parents in the survey said they plan to help their child financially when they want to buy their own home. A further three in 10 said they believed that support will be needed until their children are aged 25 and over.

Reacting to the figures, money coach and mother-of-two Kel Galavan said: “They illustrate the evolving financial landscape for Irish families. It's becoming increasingly important to consider financial planning strategies.

“The research demonstrates that families are adapting to increasing costs, particularly for essential goods such as food and baby items, by re-evaluating expenditures on holidays, celebrations, and third-level education.”