Counting the cost of kids
- Bill Tyson
- Jun 13
- 10 min read
Updated: Jun 16
How much does it cost to raise a child today?
About €169,000 in total – or €15k a year on average – is the answer that health insurer Laya came up with in a new survey released this week. That’s a whopping 39% more than we had to pay ten years ago.
Thankfully, there are also lots of ways to reduce those costs.
Here are eight tips drawn by us in conjunction with a financial expert who ‘partnered’ up with Laya to produce this survey – mum-of-two Kel Galavan.
Shop around for activities
Kids may love summer holidays. But they are a challenging time for parents who have to book and pay for a whole raft of activities while schools are closed.
Your Money pages has given lots of advice about how to cut these costs with short day trips to the countryside or the beach proving to be by far the best value.
Parents also tell us that the GAA’s summer camps - costing from €50 per child – are particularly good value.
Kel recommends good planning well in advance of summer as so many popular courses get booked out.
“I sit down with a planner for the whole summer and look at what they really want to do.”
A bit of cooperation with other parents or grandparents also works a treat.
“Arrange to bring the kids to friends’ houses. You can chat in the kitchen and have a glass of wine or some food while they play football in the garden,” she says.
Pool your parental resources
Linking up with other parents also pays off in other ways. Car-pooling to bring the kids to and from events saves time and money on fuel and car maintenance.
Help from other parents also eases childcare costs and stresses as you can arrange playdates or get your kids picked up from school in an emergency.
Saving for education
Almost half (46%) of parents had set up a savings fund account for their children’s education, according to the Laya survey.
This is not only a great idea in itself, it also encourages aunts, uncles and grandparents to contribute to future education costs that put a huge strain on parental finances in later years.
Banking on success
The amount of pocket money we give to our kids has nearly doubled since 2015 to €1,196 a year, Laya’s survey shows.
Over half of parents of children with a Revolut Jr account add up to €10 a week.
Kel recommends opening kids’ accounts to “teach children financial responsibility as early as possible.”
“Ireland has one of the worst financial literacy ratings in the OECD. Only 53% of people in Ireland reached the minimum standard - and I'm talking bare minimum. And that's just basic budgeting - nothing sophisticated,” she says.
Revolut Junior is free to set up – while An Post has another popular account for children that costs €2 a month.
Make your insurance bills healthier
Health insurance is a huge family expense costing thousands.
Almost half of parents in the Laya survey say their child has health cover which is paid for by an adult. Over 7 in 10 plan to pay for this until the child is at least 21.
That’s a pricey option. But it can be greatly reduced.
For example, one of the biggest mistakes families make is to think everyone has to be on the same plan.
You can split cover according to your needs. And, let’s face it, healthy kids don’t need high-end plans that fully cover things like cataracts, heart procedures and hip replacements. And why pay extra to cover routine health expenses when under-8s can go to the doctor for free?
Many insurers have cheaper deals for children.
Laya also has an offer that may suit large families where you pay for one child and the rest are free.
“Free kids is available on selected plans from 1st April to 30th June 2025,” Laya says.
Be healthier - and wealthier.
Food was the biggest cost for parents in the Laya survey at over €5k per year.
And busy parents come under pressure to buy processed, ready-made meals for their kids to save time.
This is bad for their health – and your wealth. Making a bit of effort to cook healthy ingredients from scratch can drastically cut your food bills, as regular readers will know from regular articles we produce on this issue.
We’ve shown, for example, how ‘instant oats’ promoted at the checkout counter in supermarkets are 18 times more expensive than those sold in 1kg bags on the bottom shelves for as little as 75c.
Go easy on yourself
Modern parents can go a bit overboard about what they think they have to spend on their kids.
Almost three quarters of those surveyed by Laya agreed that parents put themselves under too much pressure to “give their children everything.”
Yet the more we spend on our kids, the more hours we need to work to earn extra money to pay for it.
This makes parents stressed and reduces quality time they can spend with their family. Wouldn’t children prefer a relaxed, playful parent who’s actually present, rather than a stressed out workaholic who’s never around?
Kel realised this fact one day when she arrived at her school to collect her children. “The school wouldn't let me take the kids because they didn't know who I was. I was always away working,” she said.
Kel quit her high-pressure job in pharmaceuticals and started a new career as an influencer, financial advisor and money coach, which gives her plenty of flexible time with her family.
Claim your benefits
There are lots of State supports for families. But you need to claim them and many people who aren’t used to social welfare may not even be aware that they are entitled!
Another reason these benefits go abegging is that parents are under such time pressure for work and parenting duties.
The biggest one is child allowance, amounting to €140 per child per month – or €1680 per year. Crucially for many hard-working families, this is tax free and not means tested.
Such a huge benefit can hardly be missed and is claimed by most eligible people.
However, some other State goodies don’t have the same level of take-up.
Many families don’t claim Working Family Payment, for example, even though some big families are eligible with an income up to €76,544.
That limit is for an unusually large family with eight kids, but many couples on average incomes with three children could also qualify.
The payment ranges upwards from a handy €500 a year.
If entitled to this allowance, you may also get the back to school clothing and footwear allowance so it’s even more worthwhile getting onto the benefits list.
Other family benefits include GP Visit Cards and many free childcare schemes, which can be signed up online, by email, or by phone.
The card covers free GP visits up to the age of 8, assessments at ages 2 and 5, and care for children with asthma.
Laya’s research was conducted among 1,000 parents of children aged 0-21 years of age across Ireland between 1st - 10th June 2015.
The mid-point average annual household income was €56,673.Counting the cost of kids
How much does it cost to raise a child today?
About €169,000 in total – or €15k a year on average – is the answer that health insurer Laya came up with in a new survey released this week.
That’s a whopping 39% more than we had to pay ten years ago.
Thankfully, there are also lots of ways to reduce those costs.
Here are eight tips drawn by us in conjunction with a financial expert who ‘partnered’ up with Laya to produce this survey – mum-of-two Kel Galavan.
Shop around for activities
Kids may love summer holidays. But they are a challenging time for parents who have to book and pay for a whole raft of activities while schools are closed.
Your Money pages has given lots of advice about how to cut these costs with short day trips to the countryside or the beach proving to be by far the best value.
Parents also tell us that the GAA’s summer camps - costing from €50 per child – are particularly good value.
Kel recommends good planning well in advance of summer as so many popular courses get booked out.
“I sit down with a planner for the whole summer and look at what they really want to do.”
A bit of cooperation with other parents or grandparents also works a treat.
“Arrange to bring the kids to friends’ houses. You can chat in the kitchen and have a glass of wine or some food while they play football in the garden,” she says.
Pool your parental resources
Linking up with other parents also pays off in other ways. Car-pooling to bring the kids to and from events saves time and money on fuel and car maintenance.
Help from other parents also eases childcare costs and stresses as you can arrange playdates or get your kids picked up from school in an emergency.
Saving for education
Almost half (46%) of parents had set up a savings fund account for their children’s education, according to the Laya survey.
This is not only a great idea in itself, it also encourages aunts, uncles and grandparents to contribute to future education costs that put a huge strain on parental finances in later years.
Banking on success
The amount of pocket money we give to our kids has nearly doubled since 2015 to €1,196 a year, Laya’s survey shows.
Over half of parents of children with a Revolut Jr account add up to €10 a week.
Kel recommends opening kids’ accounts to “teach children financial responsibility as early as possible.”
“Ireland has one of the worst financial literacy ratings in the OECD. Only 53% of people in Ireland reached the minimum standard - and I'm talking bare minimum. And that's just basic budgeting - nothing sophisticated,” she says.
Revolut Junior is free to set up – while An Post has another popular account for children that costs €2 a month.
Make your insurance bills healthier
Health insurance is a huge family expense costing thousands.
Almost half of parents in the Laya survey say their child has health cover which is paid for by an adult. Over 7 in 10 plan to pay for this until the child is at least 21.
That’s a pricey option. But it can be greatly reduced.
For example, one of the biggest mistakes families make is to think everyone has to be on the same plan.
You can split cover according to your needs. And, let’s face it, healthy kids don’t need high-end plans that fully cover things like cataracts, heart procedures and hip replacements. And why pay extra to cover routine health expenses when under-8s can go to the doctor for free?
Many insurers have cheaper deals for children.
Laya also has an offer that may suit large families where you pay for one child and the rest are free.
“Free kids is available on selected plans from 1st April to 30th June 2025,” Laya says.
Be healthier - and wealthier.
Food was the biggest cost for parents in the Laya survey at over €5k per year.
And busy parents come under pressure to buy processed, ready-made meals for their kids to save time.
This is bad for their health – and your wealth. Making a bit of effort to cook healthy ingredients from scratch can drastically cut your food bills, as regular readers will know from regular articles we produce on this issue.
We’ve shown, for example, how ‘instant oats’ promoted at the checkout counter in supermarkets are 18 times more expensive than those sold in 1kg bags on the bottom shelves for as little as 75c.
Go easy on yourself
Modern parents can go a bit overboard about what they think they have to spend on their kids.
Almost three quarters of those surveyed by Laya agreed that parents put themselves under too much pressure to “give their children everything.”
Yet the more we spend on our kids, the more hours we need to work to earn extra money to pay for it.
This makes parents stressed and reduces quality time they can spend with their family. Wouldn’t children prefer a relaxed, playful parent who’s actually present, rather than a stressed out workaholic who’s never around?
Kel realised this fact one day when she arrived at her school to collect her children. “The school wouldn't let me take the kids because they didn't know who I was. I was always away working,” she said.
Kel quit her high-pressure job in pharmaceuticals and started a new career as an influencer, financial advisor and money coach, which gives her plenty of flexible time with her family.
Claim your benefits
There are lots of State supports for families. But you need to claim them and many people who aren’t used to social welfare may not even be aware that they are entitled!
Another reason these benefits go abegging is that parents are under such time pressure for work and parenting duties.
The biggest one is child allowance, amounting to €140 per child per month – or €1680 per year. Crucially for many hard-working families, this is tax free and not means tested.
Such a huge benefit can hardly be missed and is claimed by most eligible people.
However, some other State goodies don’t have the same level of take-up.
Many families don’t claim Working Family Payment, for example, even though some big families are eligible with an income up to €76,544.
That limit is for an unusually large family with eight kids, but many couples on average incomes with three children could also qualify.
The payment ranges upwards from a handy €500 a year.
If entitled to this allowance, you may also get the back to school clothing and footwear allowance so it’s even more worthwhile getting onto the benefits list.
Other family benefits include GP Visit Cards and many free childcare schemes, which can be signed up online, by email, or by phone.
The card covers free GP visits up to the age of 8, assessments at ages 2 and 5, and care for children with asthma.
Laya’s research was conducted among 1,000 parents of children aged 0-21 years of age across Ireland between 1st - 10th June 2015.
The mid-point average annual household income was €56,673.
Comments