Average Cost of Raising a Child

Human life is priceless. The goods and services required to sustain it, however, do have a finite price tag. Assessing the average cost of raising a child before making a baby may seem cynical. Still, it’s much better than not doing it and potentially dooming a kid to an early-life of financial hardship. So, scroll down and find an estimate of how much you have to spend to nurture the creation and development of a person.

Stats & Facts on the Average Cost of Raising a Child

• For people living in poverty, the upbringing of their child to age 17 costs $16,200.
• UK parents spend approximately $320,000 to raise a child to the age of 21.
• The cost of raising a kid until they are 21 is about $115,573 in South Africa.
• Median income US families spend roughly $284,570 for a child’s upbringing to age 18.
• The minimum amount required to raise a kid to adulthood in New York City is $500,000.
• It’s estimated that the costs of supporting a special needs child are quadrupled.

Average Costs of Raising a Child Worldwide

As you would expect, the differences are staggering between different countries. For this article, we’ve taken the two global extremes and compared them against each other, to get a rough average. 

As such, even in the present day almost half of the world population lives in poverty, unfortunately. They sustain themselves on less than $2.5 per day. In these places, the average annual cost of raising a child was estimated by UNICEF at around $900. Therefore, a person’s upbringing up to age 17 costs $16,200.

At the other end of the spectrum, a study done by the Centre of Economic and Business Research in the UK shows that British parents will spend approximately $320,569 on sustaining their children from birth to age 21.These numbers bring the estimated global cost of parenting to $168,384. While this is only a rough average, it still gives a good idea of the size of the expenditure required for the average cost of raising a child to 18 or thereabouts.

Average Cost of Having a Baby

After nine months, the baby is finally here, but the spending likely already began. Must-buy items for soon-to-be parents are a baby car seat, stroller, bassinet, and a baby monitor. They should also have prepared some baby clothes and diapers. All these ramp up the average cost of having a baby very quickly, and we haven’t even started. Next, parents will have recurring costs like shampoo, soap, cream napkins, possibly formula, more clothing, and, of course, more diapers. Many diapers. With these items plus the actual cost of the delivery, it’s no surprise that the average cost of raising a child in the first year is one of the highest overall.

The price of these items may vary around the world but generally accounts for a lot of a family’s income. One more costly thing that new parents should budget in advance for is the actual birth. Unless you are going for a home-birth, which is not always recommended, the hospitalization and procedure will have to be present on your spending list, too. 

Again, although the cost of giving birth will vary across locations, research made by the International Federation of Health Plans (IFHP) provides some rough estimates. As such, in Switzerland, the price is around $11,000 for a C-section and $8,000 for vaginal delivery while in Argentina it’s $3,000 and $2,500 respectively. In Australia, a C-section will cost about the same as in Switzerland, and for normal delivery, parents should expect to spend roughly $6,500.

Average Cost of Raising a Child per Year

While knowing the cost of raising a child per year is also important, many people worldwide are paid monthly, so their budgeting should be done accordingly. Living check-to-check is not necessary and, with correct budgeting and planning, any family should be able to offer the best it can for its children. The average cost of raising a child per month should include all the items needed for the baby (taking into consideration their average time of use before replacement) and consumables. For many parents, the price of childcare must also be added up to this. 

One significant spending in most parents’ lives is the cost of raising a child through college. It isn’t any news that the US ranks first in the list of most expensive average tuitions, but how do other places around the world stand? Well, UK students pay, on average, $30,800. In Australia, the cost is around $22,000 while Canadians and Swedes are expected to dish out $20,000. Although the average cost of raising a child through college can represent a hefty sum, it’s not always the case, as Germany exemplifies, with an average price of $2,400. Not to mention the places in which higher education comes at no financial cost, such as the Scandinavian countries. As we now have an overview of the cost of raising a baby to adulthood, we will go more into depth about the specific conditions in which a child is brought up in different parts of the world.

Average Cost of Raising a Child in Ireland

Irish parents are among those that feel the need to provide as much as they can for their children. 77% admit to putting too much strain on themselves to be able to offer their kids everything. As a result, the amount that an Irish family will spend to raise a child to the age of 21 can go as high as $127,654. On average, an Irish household spends $13,373 yearly on children. Parents from Ireland expect to provide in some way for their kids until they reach the age of 24, roughly. Also, 38% say they would like to put money down for their child’s house payment. Due to the high prices in Ireland, the cost of raising a child in Europe may be lower in other countries on the other side of the Atlantic.

Average Cost of Raising a Child in Brazil

Although high-income Brazilian families may pay up to around $1.4 million, the median family will pay just about $100,000 to raise a child to age 23. Due to the crumbling public school system, education accounts for the biggest chunk of this staggering amount.

Median Cost of Raising a Child in Singapore

One of the most expensive places in the world to raise a child in, Singapore offers high standards of living, but at a cost. The lowest that Singaporean household can get away with getting a kid up to age 23 and through college is a whopping $285,468.

Average Cost of Raising a Child in South Africa

As their government has calculated recently, South African parents pay around $115,573 to support their youngsters from birth up to age 18, not including tertiary education. This might not, however, tell the full story, as young adults have increasingly been failing to launch their professional careers until age 25 or even 30. This occurs because South Africans are also struggling with student loans and navigating the tight economy. Therefore, in these situations, the cost of raising a child in South Africa may shoot up drastically.

Average Cost of Raising a Child in Australia

Over the last two decades, costs in Australia have risen as the community’s general view of what children need for a healthy life has shifted. Parents on a budget, however, can still provide for their offspring, as low-income families manage to raise children with as low as $140 per week. A more realistic cost of raising a child in Australia for median income families should place the price tag at around $200 weekly.

Average Cost of Raising a Child in Canada

It’s estimated that raising a child in Canada will amount to $10,000 up to 15,000 per year until they turn 18. To add to the burden, women aged 25-34 incur a 48% income loss on average due to parental leave. This comes as no surprise, as North America is infamous for its high costs and few social measures, especially compared to Europe. The cost of raising a child in Canada is very close to the US amount.

Average Cost of Raising a Child in the UK

The costs of parenting worldwide are increasing and the UK is no different. According to the Child Poverty Action Group (CPAG), people earning minimum wage in the UK do not even make enough to start a family. As such, they estimate that the average cost of supporting a kid to age 18, excluding housing, childcare, and council tax gets up to $104,400 for a couple-family and $142,000 for a single parent/guardian.

Median Cost of Raising a Child in India

India is a place known for its income disparity, however, studies have managed to gather enough data to place the cost of raising a child in this county from birth through college at $92,200. Again, as in many other locations, education takes the highest chunk of this (about 54%).

Average Cost of Raising a Child in the US

The US is a vast place with different environments and circumstances. On average, however, the costs of giving birth revolve around $10,000. This may, however, increase up to $30,00 if you factor in the care provided before and after pregnancy. Going with a C-section costs about $3,000 more than vaginal delivery. 

After birth, the list of monthly child expenses of parents must include the baby’s accommodation, toys, food, clothes, and extra healthcare costs such as vaccines. Although the average cost of raising a child by year is significantly higher in the infant stages, it goes down for a while until shooting back up as the costs for education rise.

Of course, the direction of the funds spent varies. Until age 4, healthcare accounts for the bulk of the costs, and from 17 to 21 parents will pay the most on education. Throughout the kid’s life, the average cost of clothing for a child per year is estimated at around $720.The United States Department of Agriculture (USDA) has been tracking the annual cost of a child since 1960 and found out that in 2015, a family would have spent approximately $12,980 annually per child in a middle-income household. This puts the average cost of raising a child per year in America in the highest brackets of the most expensive to sustain a family, which is no surprise. Still, due to the nation’s high income, most families can offer a comfortable living to their offspring.

Total Average Cost of Raising a Kid in the US

Without taking into consideration the price of supporting a student through college, which is roughly between $33,000 and $51,000 in the US, raising a baby to adulthood can still add up to a significant chunk of cash. It’s estimated that the average cost of raising a child from birth to 18 for a median-income family is $284,570.

East Coast vs. West Coast

It wouldn’t be fair to provide an analysis on the US cost of raising a child without including data on the differences between the two most populated areas.  

When looking out for places on the west coast in which a family can be brought up, US parents should avoid the big cities like Los Angeles, San Francisco, and Seattle. With a tremendous increase in housing prices lately, it’s no longer worth staying there for most people. There are many smaller cities with great economic opportunities and much better living conditions. 

Compared to potential income, the average cost of raising a child in California is feasible, and that’s why a recent study ranks 9 cities from this state in the top 10 best ones to start a family in. The highest on the leaderboard are San Ramon, Folsom, and Pleasanton. Moving on to the east coast, private schooling seems to be more popular, and prices are higher there too. Child care, however, is just a little cheaper than on the west coast. With all things considered and without intending to scare anybody from it, parents should know that the average cost of raising a child in New York City is at least $500,000 in total, or more than double the national average of $245,340.

FAQ

How much does it cost to raise a child?

We estimate the worldwide average cost of raising a child to adulthood at around $168,384. To reach this calculation, we’ve taken into account the highest and lowest extreme averages from around the world.

How much does a kid cost per year?

Again, taking into consideration the same worldwide extremes, the average yearly cost of raising a child is about $8,419.2.

How much does it cost to raise a child monthly?

We estimate the worldwide average cost of raising a child to adulthood at around $168,384. To reach this calculation, we’ve taken into account the highest and lowest extreme averages from around the world.

How much does a kid cost per year?

Again, taking into consideration the same worldwide extremes, the average yearly cost of raising a child is about $8,419.2.

How much does it cost to raise a child monthly?

Knowing the yearly cost of a child, we can deduct the amount necessary to support a kid per month, which equals $701.5 as a worldwide rough estimate.

How much did it cost to raise a child in 1980?

In North America, the average parent in 1980 paid $85,000 to bring a child from birth to age 18. Adjusted to inflation, the price would be between $300,000 and $400,000, which is more than today’s average cost of raising a child.

References: Wikipedia, BBC, N26, Huggies, Vegasnews, Encomium, Sixthone, Koreajoongangdaily, iMoney, CNBC, Layahealthcare, Forbes, Netto, AISF, CPACANADA, Seedly, CPAG, Businessinsider, Investopedia, USDA, Smartasset, Babygaga, Freddiemac, Intuit, Macleans