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MasterMath

Cost of Raising a Child

Four hundred a month for eighteen years is not 86,400: at 2.5% inflation it is more than 107,000. Project the cost of raising a child using your own figures.

Estimated total cost

—

Estimated total cost—
Before inflation—
What inflation adds—
Average monthly across the period—
The final year would cost—

How this was worked out

    The formula

    total = Σ monthly spend × 12 × (1 + inflation)^year

    Where it comes from

    There is no table of spending by country here, and that is deliberate: the ones official bodies publish change every year, depend on household income and do not transfer from one country to another. The monthly figure comes from whoever knows theirs. What the calculation adds is the part nobody does in their head, which is compounding eighteen years of inflation onto a recurring amount.

    How to work it out by hand

    1. Estimate your real monthly spend: food, clothes, childcare or school, activities and their share of housing
    2. Multiply by twelve for the year
    3. Apply inflation year by year, not once at the end
    4. Add up the years and add the one-off starting cost

    What is worth knowing

    The spending is not spread evenly across the years. The early ones are heavy because of childcare, which in many places costs more than a mortgage; then they drop once school starts, and rise again in the teens with food, clothes and activities. A flat monthly average is a convenient simplification, which is why it is worth looking at the final year too — the figure closest to what you will pay when the child is older. And it leaves out what is not paid in money: the hours of care, which in any serious study are the largest item of all.

    Frequently asked questions

    How much does it cost to raise a child?

    It depends on the country, the income and the lifestyle. At 400 a month for eighteen years with 2.5% inflation, about 107,000.

    Why no official figure?

    Because it changes every year and with household income. An average from another country applied to yours would be false with the look of a fact.

    Is housing included?

    Only if you include it in the monthly figure. The usual approach is the proportional cost of one extra bedroom.

    What about a second child?

    It comes out cheaper: clothes, the pram and much of the equipment get reused, and some costs belong to the household rather than to each child.