Raising a family can be one of the biggest challenges of many people's lives, as raising and caring for children can result in a great expense and drain on personal resources.
There are many things to take into consideration when working out the cost of raising a family, including the cost of living in a bigger house, increased utilities and broadband usage, shopping and other living costs, as well as the price of an education.
By combining data on the costs of these factors from around the world we have been able to estimate the annual cost of raising a young family in 63 of the world’s most developed nations. Therefore, new research from PoundToy reveals
, where it is most affordable to raise a family, and where it is the most expensive.
Pursuant to the research, the top five most affordable countries to raise a family are:
1. Turkey, £15,326 per year:
With annual costs of just over £15,000, Turkey is by far the most affordable country in which to raise a family. The nation which straddles Europe and Asia has the lowest living costs of any country at just over £10,800 a year, as well as the cheapest average rental house price of £2,149 per annum.
2. Georgia, £17,210 per year:
The second cheapest developed country to raise a family is Georgia, where costs total just over £17,000 every year. It is actually much cheaper to send a child to kindergarten in Georgia than in Turkey, with annual costs of just under £1,000. On the other hand, rental costs are almost doubly expensive.
3. Kazakhstan, £18,467 per year:
Next up is the central Asian nation of Kazakhstan, which is the only country to feature in the top five cheapest nations for every category. It has the third-cheapest broadband costs, as well as the fourth cheapest cost of sending a child to kindergarten. On top of this, it is under £4,000 a year to rent a three-bedroom property in Kazakhstan.
4. Argentina, £19,025 per year:
The last developed country where the average annual cost of raising a family is less than £20,000 is the South American nation of Argentina. In Argentina, the total cost is just over £19,000 per year and this is helped by having the second-lowest rental prices of anywhere in the world (£3,363 per year).
5. Malaysia, £20,287 per year:
Returning to Asia for the fifth most affordable country in which to raise a family, we come to Malaysia where it costs just over £20,000 per year. Malaysia is consistently affordable across four of the five cost factors and is one of the top ten cheapest countries for all four. Utility cost in the country is the second cheapest anywhere at £399 a year, and it is the second most affordable place to send a child to kindergarten.
As for the most expensive countries to raise a family, the top five incorporates:
1. Monaco, £205,491 per year:
The home of superyachts, supermodels and superstars, is also now the home of super childcare prices. The principality of Monaco is one of the smallest nations in the world, but also one of the wealthiest and as such, the average cost of raising a family is estimated at over £200,000 which makes it by far the most expensive country.
2. Switzerland, £97,805 per year:
The second most expensive country to raise a family is the alpine nation of Switzerland, Swiss families will have to pay almost £100,000 a year on average. One of the biggest reasons for this is that Switzerland is the most expensive country in the world for sending a young child to kindergarten or nursery.
3. Luxembourg, £82,017 per year:
From one landlocked European nation to another, Luxembourg is the third most expensive country in which to raise a family with costs of over £82,000 per year. The International Monetary Fund estimates that Luxembourgians are on average the richest people on the planet, with the highest GDP per capita of any nation.
4. Singapore, £67,452.84 per year:
The city-state of Singapore is the fourth most expensive country in the world in which to raise a family, as estimated annual costs exceed £67,000. Despite having low annual utility and broadband costs (around £1,100 combined), Singaporeans have high annual living costs of over £30,000 and the rent on a 3 bedroom house is over £27,000.
5. Iceland, £62,456 per year:
The fifth most expensive nation in which to raise a family is Iceland, where the average annual cost is just under £62,500. Although Icelandic residents will not have to spend much on education and utility costs compared to other nations, they will have to pay for living costs which are the third-highest globally at over £40,000.