While all parents know that bringing up children is expensive, the true cost is staggering - particularly when so many families are so short of cash.

A new study has calculated that raising a child from birth to the age of 21 can cost parents £193,772 - that's £9,227 a year, £769 a month or £25 a day.

It's little wonder then that 81 per cent of parents have had to cut back on family expenditure, and over a third have sleepless nights over money worries.

And it's little comfort to know, according to a survey by insurers LV, that the cost of raising a child has increased by four per cent over the past year, and by more than a third over the last five years.

Childcare and education remain the biggest expenditures, costing £53,818 and £50,240 respectively until the child reaches 21.

There is some good news - pocket money costs are at their lowest since 2004 and expenditure on family holidays in 2008 was only four per cent up on the 2003 figure - but LV Group chief executive Mike Rogers agrees there is little comfort for mums and dads in the survey.

He says they are concentrating on cost-cutting.

"Parents are being very resourceful when it comes to budgeting and cutting back on non-essential spends, " he said.

"Planning ahead is more important than ever, and saving as much as you can, just a little and often, could help to ease the financial pain."

But recent research by the Family & Parenting Institute (FPI) found that 57 per cent of parents feel unable to save money. The FPI's website (familyandparenting. org/forFamilies) offers lots of money-saving tips for parents.

Support can come from the Department for Children, Schools and Families (DCSF) and it has teamed up with finance expert Martin Lewis, of the website MoneySavingExpert. com, to let parents know what financial support they can get towards childcare costs.

"Families are under a huge amount of financial pressure at the moment, and many are unsure whether their household income will be enough to cover bills in the next six months, " Martin said.

"In the current climate there's a lot of uncertainty and stress for the average family - which makes it all the more important that people laim what they are entitled to.

"There are a number of options to help families with their childcare costs - more options than many people think."

To help parents make sure they are aware of all those options, Martin has devised a four-step plan.

1.Check you are getting your tax credits for childcare, which are worth up to £240 a week.

Parents who work 16 hours a week and use Ofsted-registered childcare may be able to get up to 80 per cent of their childcare costs back through tax credits, to a maximum of £175 a week for one child and £300 a week for two or more children.

2.Use childcare vouchers, which can save over £1,000 a year per parent on childcare costs.

Many employers offer childcare vouchers, which allow parents to pay for any Ofsted-registered childcare out of their pre-tax income. Employers can provide vouchers for up to £55 per week, or £243 per month, without employees having to pay tax or National Insurance. Both parents can receive childcare vouchers from their employer, even if they only have one child.

3.Check out free or low-cost clubs and activities at local schools - they are a safe and cost-effective way to resolve childcare needs and taxcredits can be used to pay for them if necessary.

4.Use free early learning for children aged three or four. They are entitled to at least 12.5 hours a week at a range of places, includ-ing Sure Start Children's Centres, nurseries, pre-schools and childminders.

This will rise to 15 hours across England by 2010.

"Taking advantage of what's on offer from tax credits to childcare vouchers could save parents thousands each year, " said Martin.

"A little bit of time is needed to check entitlements and how to apply, but it is worth it.

"The time spent can produce some serious cash for families."