25 Most Expensive Countries in the World to Raise a Child

Meerub Anjum
12 min read

In This Article:

In this article, we will look into the 25 most expensive countries in the world to raise a child. If you want to skip our detailed analysis, you can go directly to the 5 Most Expensive Countries in the World to Raise a Child.

Cost of Raising a Child

According to a report by The Motley Fool, the total cost of raising a child in the United States is approximately $300,000 till the age of 17. A middle-income family spends an average of $233,610 to raise a child until age 17, without considering inflation. Assuming 4% inflation, the annual expenses of raising a child surpass $15,000 at the age of 8 years. It further increases by over $20,000 annually when they turn 14. A total cost of $25,000 is spent annually when a child turns 17 according to the USDA.

Housing and living cost is one of the major expenses of raising a child in the United States. Housing expenditures account for 28% of the total income in middle-income families, according to the USDA. Food is the second major expense, followed by education, healthcare, and other expenditures. High-income families spend a larger portion of their budgets on childcare and education as compared to low and middle-income families.

Global Childcare Market

The overall child-rearing cost encompasses multiple expenses including housing, food, education, healthcare, and childcare. A significant portion of a family's budget goes to childcare expenses, especially for those with multiple children. According to a report by Mordor Intelligence, the global childcare industry was worth $209.92 billion in 2022. The market is expected to grow at a CAGR of 10.10% and reach $339.62 in 2028. The growth is driven by the rising number of single parents, increasing demand for early childcare education, and growing adoption of new learning technologies.

The daycare and early education segment is expected to experience significant growth over the forecasted period. The growth can be attributed to the increasing development of advanced learning techniques, growing government initiatives, and rising funding. Duolingo, Inc. (NASDAQ:DUOL) is one of the top companies offering education products for children. In March 2023, Duolingo, Inc. (NASDAQ:DUOL) launched an app to help children learn to read and write in English. The app offers over 700 lessons to children aged 3 to 8 years. Duolingo, Inc. (NASDAQ:DUOL) also committed $1 million for early childhood care and education for the Pittsburgh community in September 2023.

Bright Horizons Family Solutions Inc. (NYSE:BFAM) is a leading childcare and early education services company. On November 27, Bright Horizons Family Solutions Inc. (NYSE:BFAM) announced that it will be hosting the Spark Summit, the inaugural research-to-practice event of the National Center for Early Education Excellence at Bright Horizons. The summit is a free on-demand conference for educators and families that will include two tracks, one for families and one for educators. Attendees can choose their preferred track that will allow them to learn at their own pace. The summit will have sessions educating attendants on various research topics covering behavior, resilience, executive function, early math, language development, and more. Bright Horizons Family Solutions Inc. (NYSE:BFAM) is at the forefront of providing childcare services and products.

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