The cost of raising a child until they are 21 years of age is over €105,000, new research has shown.

According to the findings, childcare and third level fees are the most expensive costs that parents have to contend with, however these are just two of a number of costs, including food, clothing, health expenses, hobbies, holidays, haircuts, nappies and baby formula.

Childcare costs an average of €4,049.92 per child per year, while third level fees cost a similar figure. Other expenses per year include:
-Food - €3,197.52
-Health, including GP and dental fees - €647.76
-Nappies - €505.08
-Baby formula - €541.68
-Hobbies and toys - €455.76
-Kids' parties - €414.36.

The research found that the average age at which parents expect their children to be fully independent is 24 years, although many parents would like to be able to financially help out their adult children at certain times in their lives, such as when they are buying their own home, getting married or having children of their own.

The research also highlighted the fact that at least two in three parents have not estimated the future costs of supporting their children. Furthermore, almost half of parents have admitted to cancelling various insurances to cut back on costs, while at least one in four have cancelled their pension for the same reason.

Almost half of parents have put off saving for their own retirement so that they can help their children out financially.

"It's crystal clear from the research that Irish parents want to provide financial stability for their children, but they are still suffering from the effects of the recent economic downturn, 'The Great Recession'. It's the worst recession the world has experienced since the Great Depression of the 1930s, and the worst in Ireland since the 1950s.

"Many parents today have raised their children in exceptionally difficult financial circumstances and it's clear from the research that savings and important financial protection such as life insurance have been put on the long finger or forgotten altogether as parents fight to survive financially," commented economists, Joseph Durkan and Moore McDowell, who collaborated in the research.

They encouraged parents to put in place some sort of ‘savings strategy' to secure themselves against any future ‘shocks', such as the premature death of one parent.

However, the research revealed that this topic is somewhat taboo. One in four parents said they are not comfortable talking about their own death with their partner or family, while most have not considered their own funeral arrangements.

The research was carried out on behalf of Laya Life and included a survey of 1,000 parents on the costs of raising their children.