Family money worries: The cost of raising a teenager

by My Kent Family reporter

January is often a time when people try to take a good, hard look at their finances.

But for parents of teenagers, the amounts being shelled out on their offspring may come as a shock when the outgoings are added up in the cold light of day.

Financial pressures may have also changed quite a bit since parents themselves were teens - with gadgets like mobile phones, tablets and laptops now part of the routine expenses for many households.

Research from Aviva suggests parents typically spend more than £28,000 raising a teenager.

Parents typically spend more than £28,000 raising a teenager
Parents typically spend more than £28,000 raising a teenager

Excluding household costs such as food and energy bills, parents typically put the average cost of raising a son or daughter from the age of 13 to 19 at £28,767.

The age of "sweet 16" seems to be a particular pressure point financially.

While parents say they spend just over £4,100 a year on raising a teenager on average, the average cost rises to £4,800 for a 16-year-old.

So what makes the cost so high?

Aviva took into account birthdays and special occasions, holidays and gap years, food and drink outside of the regular supermarket shop, clothing and pocket money.

Technology plays a major part in ramping up the cost, according to the findings. More than half (53%) of parents spend on technology for their teenagers, such as mobile phones and laptops, forking out £225 per year on average.

It's clear many parents also feel under pressure to open their wallet.

Almost half (45%) of parents with teenagers feel pressured to spend more on them, with the biggest source of pressure being put down to teenagers themselves, the research found.

More than half of parents spend on technology for their teenagers
More than half of parents spend on technology for their teenagers

And if applying the pressure on parents doesn't work, making them feel guilty for not spending more is another popular teenage tactic.

Nearly one in four (24%) parents surveyed had fallen out with their child for refusing to buy them something and 17% felt they had been "guilt tripped" into making purchases for their teenager.

Relying on the bank of mum and dad

Even if your offspring are planning to fly the nest in 2017, parents should not necessarily expect they can draw a line under their financial commitments to their children

Aviva also found another £15,406 is needed by parents on average to help each child between the ages of 20 and 25 years old - a time when many young people may "boomerang" back into the family home after leaving university.

Meanwhile, research from the think-tank the Institute for Fiscal Studies (IFS) suggests younger generations are going to be increasingly reliant on the "bank of mum and dad" - even after their parents have died.

The IFS found that, in general, younger generations are more likely to receive an inheritance than older generations were. But it also warned that today's young adults will find it harder to create their own wealth than previous generations, as some struggle to get on the housing ladder.

Many young people graduate from university and boomerang back into the family home before finding their feet financially
Many young people graduate from university and boomerang back into the family home before finding their feet financially

Advice on how to cope

So how can parents create better relationships with teenagers where money is involved? Here are some tips from Louise Colley, customer propositions director at Aviva

  • Talk to your teen about managing their finances and make sure they know the basics of budgeting, particularly at key milestones such as moving away from home for university or college.

  • Encourage them to put money aside each month and take responsibility for managing their own money.

  • Be open about the family's finances, particularly as teens get older.

  • Plan ahead. If your teen is planning to go to university, make sure they understand how much money they will receive and how to make this last.

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