Inflation has had a significant impact on the cost of raising a child in the United Kingdom since the 1990s. According to a report by the Centre for Economic and Business Research (CEBR), the average cost of raising a child in the U.K. from birth to the age of 18 has increased by 65% since the 1990s.
The cost of childcare, education, and housing have been the main drivers of this increase. For example, the cost of childcare has increased by 61% since the 1990s, while the cost of housing has increased by 128% in the same period. The cost of education has also risen significantly, with private school fees increasing by 83% since 1990, and university tuition fees rising dramatically in recent years.
To put this into context, in the 1990s, the average cost of raising a child in the U.K. was estimated to be around £63,000. However, according to the CEBR, the average cost of raising a child in the U.K. from birth to the age of 18 is now estimated to be around £151,000.
These rising costs have put a significant strain on families, particularly those with lower incomes, and have made it increasingly difficult for families to provide for their children's needs. This is why it is crucial to start planning for education fees as early as when you are about to have a child.
Melbourne Capital Group understands the challenges families face in managing the increasing cost of raising a child, including education expenses. We provide specialised services to help families achieve their education fee planning goals and alleviate the financial burden.
How do we do it?
Our team of Private Wealth experts start with understanding your goals and assessing your attitude to risk before creating a tailored education fee plan. This will include a financial plan with investment strategies that consider factors such as the desired level of education, expected education costs, inflation rates, and the time horizon until the child starts their education.
We can provide guidance on various investment options, such as education savings accounts, trust funds, or other investment vehicles that can generate the necessary funds over the long term.
Read how our Private Wealth Manager, Drew Mitchell helped his clients in Bangkok, Thailand here.
The increasing costs of raising a child impact families globally, transcending borders and affecting families everywhere. Whether you are an expatriate family in Malaysia or Thailand, Melbourne Capital Group is dedicated to providing the support you need to settle in with your finances and safeguard your family's future. We understand the unique challenges faced by expatriate families and are equipped to assist you in navigating the financial complexities associated with raising a family in an inflationary environment.
Fill in the form below or email us at email@example.com to book a complimentary discover call with on our Private Wealth Specialists today.
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