The cost of bringing up a child has reached £227,266 with the first year of a child's life seeing the largest increase, LV= said.
As a result one in ten families are cutting existing financial arrangements, such as income protection or life cover, to help with budgeting.
According to the annual Cost of a Child report from LV=, the cost of a child's first year has risen by 50% (£11,025 up from £7,372) since the first report in 2003.
In the past 12 months it has increased by 5% - largely due to the cost of childcare for children aged less than a year is rising by 7% (£,6,623 up from £6,191 in 2013). In total, parents now spend £66,113 on childcare - an increase of 4% overall.
LV = said the need to make the family finances go further has taken its toll on the amount parents are likely to put aside for the future.
One in three (34%) say they've had to reduce the amount they save and one in 10 (10%) have had to cancel or review their insurance products and income protection cover to help with family budgeting.
Two-fifths (41%) of parents now have no life cover, critical illness or income protection cover at all.
Mark Jones, head of protection at LV= (pictured) said, "Having children has never been more expensive. The costs associated with raising a family are set to remain a pressure point for families across the UK but seeing the cost of raising a child in its entirety can help people think about how to secure their family's financial future should anything unexpected happen.
" We would also urge parents to think again before cutting back on insurance such as life cover or income protection. If either parent becomes unable to work or is no longer around then this type of insurance can protect you financially at a time when you most need it."
