Nationwide £15,500 alert to parents ahead of September costs

Nationwide £15,500 alert to parents ahead of September costs New Nationwide research shows parents face hefty bills Parents face a £15,500-plus bill for the hidden costs of sending a child to school from Reception through to GCSEs, new research has revealed. And the biggest drain on family finances is not uniforms or school trips – but the growing cost of after-school clubs. Research commissioned by Nationwide found parents spend an average £700 a year on clubs and associated costs, compared with £381 on uniform and sports kit and £116 on school trips. Over a child’s school career, that means clubs alone could swallow around £9,100. The figures come as families prepare for the new school year, with almost half of parents – 49% – saying they feel stressed about the cost of going back to school. Many are being forced to make difficult choices, including cutting spending on eating out, holidays and even savings. The £15,500 school bill Annual - School career - School clubs. £700 - £9,100 - Uniform & sports kit. £381 - £4,953 - School trips. £116. - £1,508 - Total. £1,197 - £15,561 Clubs are becoming an increasingly important part of family life. Some 36% of children attend an average of around two different clubs during the academic year, with parents paying about £11 per session. And for some working parents, they are not simply about hobbies. Nearly a quarter – 22% – say they rely on school clubs to cover childcare gaps. Almost half, 45%, say they pay for clubs to help their children develop skills outside the curriculum, while the same proportion say they support a child’s passion for a particular activity. Football is the most popular choice, followed by swimming, creative activities and dance. Parents replace 325 uniform items Uniforms may not be the biggest expense, but the costs can still mount up alarmingly. Nationwide’s research suggests parents spend an average £381 a year on uniform and sports kit. They also report replacing around 25 items each year, with children losing, damaging or wearing them out. Over the course of a school career, that works out at around 325 items. The most expensive items include: Item - Average cost - School shoes - £43 - PE trainers -£42 - Blazer - £37 - Tracksuit - £29 Some parents are paying even more, with 12% spending more than £76 on PE trainers. And then there are school trips. Almost every child – 98% – attends at least one day trip during the year, while around half go on a residential trip. Of those taking residential trips, 49% of parents spend more than £100 per child. Families are cutting back The financial pressure is already changing household spending. Nationwide found families are cutting back on: Spending being cut - % of Parents - Eating out/takeaways - 37% - Entertainment - 22% - Holidays/travel - 21% - Clothing/fashion - 20% - Home improvements - 18% - Household spending - 18% - Savings/investments - 18% Despite the squeeze, parents are trying a range of ways to bring the bill down. The most common tactic is looking for sales and discounts, used by 43% of parents. Some 35% are putting money aside in advance, while 34% are reusing items from previous years and another 34% are comparing prices between retailers. How parents are trying to save - 43% look for sales and discounts - 35% set money aside in advance - 34% reuse items from previous years - 34% compare prices between retailers - 28% prioritise essentials and delay non-essential purchases - 25% spread purchases throughout the year For uniforms specifically, a third of parents buy supermarket own-brand ranges, a third only replace items when they are worn out and a third shop around for the best prices. Almost a quarter – 23% – deliberately buy larger sizes so uniforms last longer. Jordan Banjo, member of Diversity and street dancer, said: “Like a lot of kids, I grew up having lots of hobbies from dancing to karate. So, I know the value of them but that doesn’t mean the cost doesn’t add up - £700 a year on clubs alone according to Nationwide’s research. Then add in uniforms and trips and you have stressed families. “That’s why Nationwide has teamed up with Finder to create a new back-to-school calculator, giving parents a simple way to see how their own spending compares with other families and understand their back-to-school spending habits and personality – are you a savvy saver or a go-with-the-flow, I’d like to think I am a quality seeker but I am probably more of a go-with the flow.” Fred Powell, Head of Current Accounts at Nationwide, said: “Our research confirms what many families already know: back-to-school costs can quickly add up. Clubs and trips all play an important role in a child’s school experience, helping them learn new skills, build confidence and make new friends and also help cover childcare gaps. "Then of course there is the school uniform! With these costs adding up over the years, it’s encouraging to see we are nation of savvy savers finding practical ways to save money, from shopping around and buying in sales to choosing bigger sized uniform items that last longer. "Our new calculator with Finder, alongside the budgeting tools in our app and support from our colleagues, can help families understand and manage the costs of the new school year.” Kate Steere, parent and consumer editor at Finder, said: “Clubs are vital for building life skills outside the classroom, but we can’t ignore that they’re also becoming an essential part of the working parent juggle, with a quarter of parents using clubs to plug the childcare gap.” She added: “Unsurprisingly, the expenses stack up. To manage this, I’m upfront with my kids about how many activities we can afford. With prices rising this year, we had to sit down and make a hard call about dropping one, evaluating each club based on cost versus enjoyment. Involving kids in these conversations is a great way to introduce real-world budgeting, the difference between wants and needs, and how to make tough financial trade-offs.” Ms Steere also highlighted the cost of equipment and kit, suggesting parents make use of second-hand sales, community groups and resale platforms. Nationwide is working with Finder on a new back-to-school calculator allowing parents to compare their spending on clubs, uniforms and trips. Details here.