“Most parents, at least in their minds, have set limits on how much money can be spent per year to meet their child’s needs. Generally, these needs reflect the family’s financial situation, goals and priorities. Therefore, in addition to expenses for food, clothes, shoes or school supplies, there is a basket of funds for the child’s clubs, additional education or just leisure entertainment. Seeing all expenses makes it easier to manage them,” says Sigita Strockytė-Varnė, personal finance expert at SEB banka. She points out that approximately every seventh survey participant this year could not answer or did not know how much money they have to spend on their child every year.
Also, S. Strockytė-Varnė notices that parents raising one, two or three children similarly defined the amount that needs to be raised and supported per year for one child until he turns 18. According to the expert, the truth is that raising two, three or more children usually reduces the cost per child. This happens because some of the toys, furniture or clothes are passed on by the elders to the younger ones as they grow up, thereby extending the life of the items. In addition, families with more children can take advantage of benefits and discounts, and as a result, raising a second or third child may require less funds.
During the survey conducted in July of this year, the largest part (36%) of respondents indicated that 3001-5000 euros are needed to support one child per year. This option and the larger amount exceeding 5,001 euros were more often chosen by residents of large cities. In comparison, people interviewed in towns and rural areas more often indicated the amount of 1000-3000 euros. “The difference reflects statistics showing that the average income per inhabitant is higher in cities than in regions. A larger offer of activities for children and higher prices of clubs can also have an impact on higher general costs in cities,” says S. Strockytė-Varnė.
Comparing the data of this year’s survey with a similar survey conducted in 2022, S. Strockytė-Varnė points out that in a couple of years the number of residents claiming that it is enough to allocate up to 1,000 per child per year has decreased. euros. Now this amount was indicated by only 3 percent. respondents, and a couple of years ago – 17 percent.
At the same time, from 13 to 23 percent. the share of parents who indicated that they need to spend more than 5 thousand per year for their child’s needs has increased. euros. According to the expert, these changes could have been influenced by about 10 percent per year. increased income of the population, which allowed more money to be spent on children’s needs. Costs were also rising due to increased club prices and higher food prices in schools.
S. Strockytė-Varnė agrees that it is worth following and analyzing family budget expenses for children’s needs as well as personal expenses. According to her, by determining what the average amount is generated per month and what the money is spent on, it is possible to find ways to manage these finances better and involve the children in this process.
“Saving goals and budget management principles are easier to implement when they are understood and supported by every member of the family,” emphasizes the representative of SEB bank. She points out that children’s lives are made up of many different stages with different needs, so family conversations about finances and appropriate agreements are always relevant.
2024-08-30 01:12:35