Raising a teenager costs a whopping £28,767 – more than the average UK salary.
A report by Aviva – The Cost of Youth – found the bill for teenagers (age 13 – 19) topped the average salary which is just £26,104, and that ‘Sweet 16’ was the most expensive, milking parents out of £4,800 a year.
Over a third of parents said they have sacrificed saving for retirement to meet these costs and 37% said they have stopped going out so that they can give the money to their teenagers instead.
Some parents have even cut back on spending on themselves such as clothing or haircuts – 19% said they make do without a haircut to save the money. Half of the parents said they have dipped into savings or relied on credit cards or loans for their teens and over a third have had to work overtime to pay for the expenses.
Only half of the parents surveyed said they have taught their children about budgeting, banking or how savings accounts work. (See video below about how to talk to children about money and why it is important).
More than a third of parents admit that their teenagers do not know how much they earn and think it more than it actually is.
Saying ‘no’ has resulted in family conflict, with just under a quarter saying have fallen out after refusing to fund a lifestyle demand, and 17% said they have experienced some form of emotional blackmail or guilt trip.
These costs do not include household costs, such as groceries and utility bills, but are related to birthdays of special occasions, holidays, gap year travel, food and drink outside of household groceries, including school meals, essential clothing and shoes, pocket money, additional education or tutoring and technology (mobile contracts and handsets, computers, tablets).
Talk to children about money – one of the best lessons you can give your child!!