25 Most Expensive Countries in the World to Raise a Child
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.
Global Pediatric Healthcare Market
Another major cost that contributes to child-rearing expenses is healthcare. The US spends a significant amount per capita on pediatric healthcare, more than any other country. The global pediatric healthcare market benefits from rising income and government spending. According to a report by Market Research Future, the global pediatric healthcare market is expected to reach $45.13 billion in 2023. The market is expected to grow at a CAGR of 7.02% and reach $63.35 billion by 2028. The growth can be attributed to the rising chronic illnesses among children, increased awareness of parents, and a rise in the number of pediatricians. Growing research and development activities are also anticipated to contribute to the growth of the market. Some of the top companies in the pediatric healthcare market include Novartis AG (NYSE:NVS) and The Procter & Gamble Company (NYSE:PG).
Novartis AG (NYSE:NVS) is a leading company in the healthcare sector, specializing in innovative medicines. On October 6, Novartis AG (NYSE:NVS) announced that the FDA approved the intravenous formulation of Cosentyx, which is used to treat adults and children with moderate to severe plaque psoriasis (PsO). The IV formulation is now available for use. It can be used for the treatment of active psoriatic arthritis (PsA) in people aged 2 years and older.
The Procter & Gamble Company (NYSE:PG) is a leading multinational company, with many pediatric healthcare products. Pampers is a leading diaper brand of the company that is also available in different variations for children with sensitive skin. On October 19, The Procter & Gamble Company (NYSE:PG) launched Pampers Swaddlers, the biggest innovation in the brand since 2018. The revamped Pampers Swaddlers feature the new Blowout Barrier. The new Blowout Barrier helps prevent leakage and rashes and helps keep the skin dry and healthy.
Now that we have talked about the major cost factors leading to expensive childcare and discussed the markets benefiting from it, let's look at the 25 most expensive countries in the world to raise a child.
25 Most Expensive Countries in the World to Raise a Child
Methodology
To rank the 25 most expensive countries in the world to raise a child, we utilized 3 metrics including the cost of living index, the healthcare price index, and the education price index. We sourced our data from The GlobalEconomy.com.
Firstly, we sorted our list based on the cost of living index and formed a list of the top 50 countries. We then employed our other two metrics and calculated the Insider Monkey rating to rank our countries.
We assigned scores to all three rankings as follows: Countries ranked 1-5: 10 Countries ranked 6-10: 9 Countries ranked 11-15: 8
Then, we calculated a weighted average, assigning 60% weight to the cost of living index, 20% weight to the healthcare price index, and 20% weight to the education price index. Finally, we ranked the 25 most expensive countries in the world to raise a child in ascending order of the final calculated score
25 Most Expensive Countries in the World to Raise a Child
25. Uruguay
Cost of Living Ranking (2017): 26
Healthcare Price Ranking (2017): 34
Education Price Ranking (2017): 24
Insider Monkey Rating: 5 out of 10
Uruguay is ranked 25th on our list of the most expensive countries in the world to raise a child. According to the Global Economy Ranking, Uruguay is ranked 26 on the cost of living ranking, hence exhibiting high costs of raising a child.
24. France
Cost of Living Ranking (2017): 21
Healthcare Price Ranking (2017): 30
Education Price Ranking (2017): 30
Insider Monkey Rating: 5.6 out of 10
France is a rich country in culture and heritage and offers a high standard of living. According to the Global Economy ranking, it is ranked 21 on the cost of living ranking, making it an expensive country to raise a child.
23. Italy
Cost of Living Ranking (2017): 25
Healthcare Price Ranking (2017): 31
Education Price Ranking (2017): 20
Insider Monkey Rating: 5.8 out of 10
Italy ranks 23rd on our list with a cost of living ranking of 25 according to the Global Economy ranking. Italy also has a relatively expensive healthcare and education system compared to other countries.
22. Germany
Cost of Living Ranking (2017): 24
Healthcare Price Ranking (2017): 25
Education Price Ranking (2017): 28
Insider Monkey Rating: 5.8 out of 10
Germany is an expensive European country with a high standard of living. It is ranked 22nd on our list with a high cost of living represented by its rank on the Global Economy ranking.
21. Hong Kong
Cost of Living Ranking (2017): 29
Healthcare Price Ranking (2017): 15
Education Price Ranking (2017): 16
Insider Monkey Rating: 6 out of 10
Hong Kong ranks among the most expensive countries in the world to raise a child. According to the Global Economy Ranking, it is ranked 29th on the cost of living index. It is among the top 20 countries on the Education and Healthcare Price Index.
20. Canada
Cost of Living Ranking (2017): 18
Healthcare Price Ranking (2017): 16
Education Price Ranking (2017): 23
Insider Monkey Rating: 6.8 out of 10
Canada offers a high standard of living and hence, is an expensive country to live in. Housing, transportation, and healthcare are some of the major expenses in the country. According to the Global Economy ranking, it is ranked 18 on the cost of living index.
19. Austria
Cost of Living Ranking (2017): 22
Healthcare Price Ranking (2017): 8
Education Price Ranking (2017): 17
Insider Monkey Rating: 6.8 out of 10
Austria being a popular vacation country in Europe with its rich history and cultural heritage, is an expensive country to visit and live in. According to the Global Economy Ranking, Austria is ranked 22 on the cost of living index and has a higher cost of living than the average.
18. Japan
Cost of Living Ranking (2017): 15
Healthcare Price Ranking (2017): 26
Education Price Ranking (2017): 25
Insider Monkey Rating: 7 out of 10
Japan is a country of modern and vibrant cities, offering a high standard of living to its residents. It is considered an expensive country compared to other developed countries. According to the Global Economy ranking, it is among the top 15 countries on the cost of living index.
17. Netherlands
Cost of Living Ranking (2017): 19
Healthcare Price Ranking (2017): 21
Education Price Ranking (2017): 15
Insider Monkey Rating: 7 out of 10
The Netherlands ranks 19th on our list with an overall high cost of living, and expensive education and healthcare. High housing and food costs are some of the factors that make the Netherlands an expensive country to raise a child in.
16. Belgium
Cost of Living Ranking (2017): 20
Healthcare Price Ranking (2017): 13
Education Price Ranking (2017): 22
Insider Monkey Rating: 7 out of 10
Belgium ranks among the most expensive countries in the world to raise a child. According to the Global Economy Ranking, it is ranked 20 on the cost of living index.
15. New Zealand
Cost of Living Ranking (2017): 9
Healthcare Price Ranking (2017): 31
Education Price Ranking (2017): 27
Insider Monkey Rating: 7.2 out of 10
New Zealand is an island country in the southwestern Pacific Ocean. It is a popular tourist destination and offers a high standard of living. According to the Global Economy Ranking, it is ranked 9th on the cost of living index.
14. United Kingdom
Cost of Living Ranking (2017): 16
Healthcare Price Ranking (2017): 14
Education Price Ranking (2017): 19
Insider Monkey Rating: 7.2 out of 10
The United Kingdom is known to be an expensive country. According to the Global Economy ranking, it is ranked 16th on the cost of living index. High housing and food costs are some of the major contributors to its high cost of living.
13. Finland
Cost of Living Ranking (2017): 14
Healthcare Price Ranking (2017): 24
Education Price Ranking (2017): 12
Insider Monkey Rating: 7.6 out of 10
Finland boasts a high standard of living, with access to high-quality education and healthcare. According to the Global Economy ranking, it is ranked 14 on the cost of living index.
12. Ireland
Cost of Living Ranking (2017): 11
Healthcare Price Ranking (2017): 27
Education Price Ranking (2017): 9
Insider Monkey Rating: 7.6 out of 10
Iceland ranks 12th on our list with a cost of living ranking of 25 according to the Global Economy. Iceland also has a relatively expensive healthcare and education system as compared to other countries.
11. United States
Cost of Living Ranking (2017): 17
Healthcare Price Ranking (2017): 4
Education Price Ranking (2017): 7
Insider Monkey Rating: 8 out of 10
The United States is one of the most expensive countries to raise a child. According to USDA, it costs $300,000 approximately to raise a child in the US until the age of 17. According to the Global Economy Ranking, the US is among the top 10 countries with the most expensive healthcare and education. It is ranked 17 on the cost of living index.
10. Sweden
Cost of Living Ranking (2017): 13
Healthcare Price Ranking (2017): 8
Education Price Ranking (2017): 6
Insider Monkey Rating: 8.4 out of 10
Sweden is one of the most expensive European countries to live in. Its high healthcare and education costs make it one of the most expensive countries to raise a child in. According to the Global Economy ranking, it is ranked 13 on the cost of living index.
9. The Bahamas
Cost of Living Ranking (2017): 10
Healthcare Price Ranking (2017): 18
Education Price Ranking (2017): 9
Insider Monkey Rating: 8.6 out of 10
The Bahamas is a country in the Caribbean, with an expensive and high-quality lifestyle. It is ranked 10th on the cost of living index.
8. Israel
Cost of Living Ranking (2017): 8
Healthcare Price Ranking (2017): 17
Education Price Ranking (2017): 7
Insider Monkey Rating: 8.6 out of 10
Israel ranks among the most expensive countries in the world to raise a child. According to the Global Economy ranking, it is ranked 8 on the cost of living index.
7. Barbados
Cost of Living Ranking (2017): 6
Healthcare Price Ranking (2017): 11
Education Price Ranking (2017): 14
Insider Monkey Rating: 8.6 out of 10
Barbados is a captivating island country popular among tourists. It offers a high quality of life and is expensive compared to other countries, especially in the Caribbean. It is ranked 6 on the cost of living index according to the Global Economy ranking.
6. Luxembourg
Cost of Living Ranking (2017): 12
Healthcare Price Ranking (2017): 1
Education Price Ranking (2017): 10
Insider Monkey Rating: 8.6 out of 10
Luxembourg is an expensive European country with a high standard of living. It is ranked 6th on our list with a high cost of living represented by its rank on the Global Economy Ranking. Luxembourg has the most expensive healthcare in the world according to the Global Economy.
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Disclosure: None. 25 Most Expensive Countries in the World To Raise a Child is originally published on Insider Monkey.
