The shocking costs: A child makes parents liable for up to 165,000 euros!

The shocking costs: A child makes parents liable for up to 165,000 euros!

Today, a current analysis shows that the costs for parents in Germany who raise a child until they come of age are between 150,000 and 165,000 euros. These significant expenses vary greatly depending on household income and the age of the children. Costs rise significantly, especially in adolescence, which poses financial challenges for parents.

Monthly consumer spending per child varies and increases with age. For children under 6 years of age the cost is around 679 euros per month. From the age of 6, they increase to around 784 euros and even reach around 953 euros between the ages of 12 and 18. A sample calculation for the youth years (12-18 years) results in total costs of 68,616 euros over six years (953 € × 12 months × 6 years) reports the Soester Anzeiger.

The total cost of raising a child includes not only everyday expenses such as housing, food and clothing, but also education, health and leisure activities. The special expenses in teenagers include, for example, costs for a driving license of an average of 2,500 to 3,000 euros as well as expenses for school trips and exchange programs of 500 to 1,500 euros annually according to the Federal Statistical Office.

Influences on costs

The differences in per capita spending are significant and depend heavily on households' disposable monthly income. Families with a net household income of less than 1,700 euros invest an average of only 325 euros per child per month, while high-income households over 5,400 euros net spend around 860 euros per child per month. Another crucial factor is that wealthier families invest almost three times as much in education, music lessons or sports as households in the lowest income fifth reports the Federal Agency for Civic Education.

An international comparison shows that the costs of raising a child in Germany are moderate. While in the USA an average of 233,000 USD (approx. 215,000 euros) and in the United Kingdom around 200,000 pounds (approx. 235,000 euros) have to be raised for a child until they come of age, the costs in Germany are significantly lower at around 150,000 to 165,000 euros stands out in the Soester Anzeiger.

Economic framework conditions

The Federal Statistical Office's Income and Consumption Sample (EVS) records all income and expenditure of private households. The data provides important information about the living conditions and consumer behavior of the population. This information is crucial for the state's economic and structural policy as well as for companies' production and sales planning adds the Federal Statistical Office.

Price developments in Germany, measured annually in the consumer price index (CPI), show that prices for goods and services rose by an average of 5.9% in 2023. This inflation rate has, among other things, an impact on the cost of living and therefore also on the cost of education, as food prices in particular have risen by 12.4% reports the Federal Agency for Civic Education.

Given these financial challenges, parents are advised to prepare comprehensive financial planning for the period of parenthood at an early stage. Expenses will increase not only during childhood, but also afterwards, especially for higher education.