The cost of raising a child in Ireland has increased by 60% over the past decade, research from Laya Life has found.

The insurer's Cradle to College Cost Index shows parents are having to spend an extra €63,500 to cover the cost of raising a child to the age of 21 compared to 2015.

Laya estimated the cost at €169,372.85 following a survey of 1,000 parents, who said the first year of a child's life and their teenage years are the most financially demanding.

Furthermore, the average cost per child per year from ages 0-21 has also risen by 39% in the last decade to €15,324.20.

The research shows that the cost of most essential items has increased, most notably nappies (+188%), baby formula (+169%), and food (+61%).

The cumulative annual cost of nappies has almost tripled from €505.08 a decade ago to €1,456 now, with the cost of formula also up by nearly €1,000 from €541.68 to €1456.

Feeding a child is expected to set parents back €5,148 compared to €3,197.52 in 2015, an increase of nearly €2,000, and parents will shell out €1,196 in pocket money, 86% more than €642.72 expected 10 years ago.

Meanwhile, the cost of rent support has risen by more than a third (+37%) from €3,320.76 to €4,536.

To compensate, parents have cut back on communion & confirmation gifts (-79% to €120), family holidays (-35% to €1,079), birthday presents (-70% to €148) and even university fees (-16% to €3,387) in a given year.

The research demonstrates that families are adapting to increasing costs, particularly for essential goods such as food and baby items, by re-evaluating expenditures on holidays, celebrations, and third level education," said money coach and mother of two Kel Galavan.

"Worryingly, less than half (48%) of Irish parents have life insurance, leaving them vulnerable should the unexpected happen.

"This underscores the critical need for families to prioritise financial security and protect their loved ones in the face of these evolving economic challenges and it’s nowhere near as expensive or as complicated as people think.”

Over half (55%) of Irish parents plan to help their children financially when they want to buy their own home, and three in ten anticipate general support being needed until their children are aged 25 or older.

In 2015, the average age parents expected their children to be fully independent at was 24, highlighting the continued need for parental support well into adulthood, this remains consistent in 2025.

Seven in 10 parents (73%) say they put too much pressure on themselves to give their children everything.

Despite the high costs of raising children, only one in two parents (51%) have made a savings plan to cover the future costs of supporting their children until they’re old enough to support themselves up from 31% last time.

"This increase in the cost of raising a child over the past decade reinforces the value of financial planning for Irish parents," said JP Hughes, head of Laya Life.

"Understanding long-term financial security is key, and families need to consider how they can best protect themselves against future uncertainties.

"Laya Life offers a simple process and instant cover online within minutes, with no medical requirement, providing families with a sense of security, knowing that financial needs, including mortgage repayments, educational expenses, and ongoing living costs, can be addressed should unforeseen circumstances arise.”

(Pic: Getty Images)