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.
Video Cost of raising 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. (This calculation is difficult, since families in developing countries often do not operate with currency, but barter or trade to provide for their children.) Half of all children in the world live in poverty.
Maps Cost of raising a child
United Kingdom
The annual LV= (Liverpool Victoria) Cost of a Child report calculates the cost of raising a child from birth to 21 years old. The latest report 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 (CEBR) 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
United States
The tax exemption per child is $3,900 in 2013 which is based on the basic cost of raising a child. Plus there is a tax credit up to $1000 for each child.
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 (e.g., Texas A&M University Finance Professor H. Swint Friday: "The numbers, reported by the U.S. Department of Agriculture, are outrageously misleading. Often government statistics are produced for political objectives that cause the research methodology to be biased toward finding the highest dollar amount to support the objective.").
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)
All numbers are in US dollars.
Also notice that the dual parent and solo parent charts use different income ranges so that direct comparison between the two should be undertaken with care.
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 (21 Years) for a middle to upper-middle income family comes to about INR55 lakh (US$82,000) in total.
Cost break up is as follows:
Note: Estimate assumes cost of birth, but doesn't consider any major illness in child.
See also
References
External links
- "Raising that '07 baby will cost $204,060 in U.S." - from Reuters, retrieved August 5, 2012.
- "Cost of raising children not as high as government would have you believe" - from caller.com, retrieved March 31, 2013.
- "Cost of Raising Children in the US" - from Globe Life Insurance, retrieved September 11, 2013
Source of the article : Wikipedia
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