Saturday, November 28, 2009

To raise a child can cost 1 Million

In material world, it is a high risk investment to raise a child in this century. Being parents in the modern world can cost a lot more than the previous generations and certain elements of uncertainties can have some affects on the 'investment'.

Basically on equal term, the costs of raising children are the same for all of us. Children have needs and while we might think of the obvious ones, we need to factor in absolutely everything a child will require until it's independent.

A research breaks down costs into ten groups, whereby the Housing and childcare are the two most expensive, then food. Living in the UAE, the education is another expensive expenditure.

The ten groups include:

  • housing
  • childcare
  • food
  • energy
  • clothing and footwear
  • household goods and services (including education)
  • leisure
  • personal care
  • transport
  • health
I have three good boys, millions or not to raise them, at the end of the day, they are part of responsibilities and amanah (trust) from Allah. Been telling them, they can be Canadians, British, Americans, Australians, New Zealanders or Malaysians, as long as they are good Muslims first, I do not mind.

Below article is based on a research in Australia, it is good to know the cost of raising kids in Malaysia.

It costs a million to raise a child

Generation Z doesn't leave home at 18, but stay with the parents until mid-20s

  • Reuters

  • Image Credit: Supplied

Sydney: Think your children are costing you a lot? You're right, with an Australian study finding that the average child now costs A$1 million (Dh3.33 million) to raise, taking into account toys, holidays and other activities.

A study on Generation Z and the cost of parenting by social analyst Mark McCrindle found a government estimate that it cost $384,543 to raise a child to 18 was way off as this did not include private education, holidays or "non-essential" items.

It also assumed that children would leave home at 18 but this was no longer the case with Generation Z, those born after 1995, as the costs of accommodation and bills were a deterrent to moving out.

"In today's Australian families the majority of young people stay in the parental home and rely on their parents for some of their expenses until their mid-20s. Therefore the cost per household to raise children to age 24 is $834,000," McCrindle from McCrindle Research said in his report.

He said then you had to add the "non-essential" yet "usual" child rearing expenses such as toys, holidays and travel, dining and entertainment, private tutoring and education, sport and activities, furniture and household equipment dedicated to the children's use.

This boosted costs by another $3,000 per child per year.

The A$1 million pricetag was broken down into food costing $206,000, housing and utilities $165,000, recreation and entertainment $157,000, health and other services $153,000, clothing and equipment $129,000, transport $123,000, and education and child care $95,000.

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