The cost of raising a child varies from country to country. The cost of raising a child is usually determined according to a formula that accounts for major areas of expenditure, such as food, housing, and clothing. However, any given family's actual expenses may differ from the estimates. For example, the rent on a home does not usually change when the tenants have another child, so the family's housing costs may remain the same. In other cases, the home may be too small, in which case the family might move to a larger home at a higher cost. The formula may also account for inflation, as prices are constantly changing, and it will inadvertently effect how much it costs to raise a child.
Developing countries
According to Globalissues.org, "Almost half the world—over three billion people—live on less than $2.50 a day." This statistic includes children. Based on UNICEF statistics, in developing countries the cost is roughly US$900 for raising a child for a year, and US$16,200 for raising a child from birth to age 17. Half of all children in the world live in poverty.
United Kingdom
The annual LV= Cost of a Child report calculates the cost of raising a child from birth to 21 years old. A report from 2016 puts the cost as £231,843. The Cost of a child calculations, from birth to 21 years, were compiled by the Centre of Economic and Business Research for LV= in December 2015 and are based on the cost for the 21-year period to December 2015. Additional research was conducted by Opinium Research LLP from 22 to 27 January 2016. The total sample size was 1,000 UK adults with children under the age of 18 and was conducted online. Results have been weighted to nationally representative criteria
Based on a survey by the U.S. Department of Agriculture, the table below shows the estimated Average Spending on Children by Families. The data comes from the Consumer Expenditure Survey by the U.S. Department of Labor, conducted from 2005-06. The figures have been updated to 2011 dollars using the Consumer Price Index. However, some dispute the numbers as being biased high for political reasons. These figures from the USDA go up to age 18, and do not include any college or university education. Nor does it offer any spending estimates if the child remains in the home as a dependent after the age of 18. Both tables are for the United States overall, not based on any specific region in the country.
Dual-Parent Family - USDA Average Spending per Child (not the basic cost of raising)
Single-Parent Family - USDA Average Spending per Child (not the basic cost of raising)
All numbers are in US dollars.
India
Based on an estimate by Economic Times in April 2011, the cost of raising a child from birth to age of majority for a middle to upper-middle income family comes to about in total. Cost break up is as follows:
Expenditure Class
Estimated Cost
% of Cost
Education
25.19
46%
Housing
10.40
19%
Entertainment
6.57
12%
Clothing
3.29
6%
Food
2.74
5%
Transportation
2.74
5%
Healthcare
2.19
4%
Others
1.64
3%
Total
54.75
100%
Note: Estimate assumes cost of birth, but doesn't consider any major illness in child.
