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Investing for your children’s future? Here’s what you need to know

Children may be bundles of joy but just how much does it cost to raise a child?

Topic: Investing

The average cost of raising a child to 21

£231,843 or £920 a month

[Source: CEBR]

So how does it break down?

  • £63,224

    costs when a child is
    aged between 1 to 4

  • £74,430

    cost of education
    including University
    fees but excluding
    private school

  • £14,195

    added extras like
    driving lessons, first
    car, presents

  • You may be considering private education, if so….


    is the average cost for a child to board at a private school

The figures can be pretty frightening so how do you make sure you’re ready?
Do you put a bit aside each month, make regular investments...or a bit of both?

What are the pros and cons
of saving and investing?


  • Pros:

    • Low risk – your money’s safe
    • Good for short-term goals – cover those early childcare costs
    •  Easy access to cash – for the inevitable extra expenses!
  • Cons:

    • Low interest rates mean lower returns
    • Will you be able to beat inflation when your child is older?
    •  Can often be too easy to dip into


  • Pros:

    • Potential for greater returns – particularly if you’re considering private education
    • If you start when your child is young, time is on your side to ride out fluctuations in the market
    •  Help you achieve medium and long-term goals – Be ready when University and gap years come around
  • Cons:

    • Involves some risk
    • The fees can sometimes cut into your returns
    •  Investing requires at least three to five years and if your children are already in their teens, this might be too long

Saving OR Investing OR both... you decide!

Start your investment journey

1 Comment
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  • Supermariomum
    Posted: 29th January 2019

    Big reduction in minimum investing.


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