Raising a child now costs £186,000

It costs an average of £186,032 to raise a child from birth to the age of 21, the equivalent of £8,859 a year, £738 a month or £24.30 a day, according to Liverpool Victoria.

The group found that the expenses associated with having children had increased by 33% since it first began the research in 2003, and it predicted costs could rocket by a further 42% between now and 2012.

Childcare remains the single biggest cost faced by parents, with the average family spending £50,538 on childcare in the first 21 years of their child's life.

Parents typically spend £34,320 on nursery fees from when their child is six-months-old to when they start school, followed by a further £12,654 on after-school clubs and £3,564 on holiday clubs.

Education will cost parents a further £47,310, including a three-year university degree and the associated living expenses of being away from home. Those who opt to educate their child privately face an additional bill of £72,957 for a day pupil and £130,557 if their child boards.

Parents can also expect to spend an average of £16,386 on food in the first 21 years of their child's life, £13,359 on holidays and £12,650 on clothes.

Just under £10,000 will be spent funding their children's hobbies and the same amount will be paid out to baby-sitters, while more than £7,000 will be spent on leisure activities for their offspring.

Pocket money will set parents back by around £5,500, while they can expect to spend £2,253 furnishing their child's bedroom and just under £1,000 on personal items for them.

On top of all of this parents can expect to part with a further £10,673 to cover miscellaneous expenses such as driving lessons, Christmas and birthday presents and even a first car.