Raising a kid is expensive and raising more than one will cost tons of money. Parents have to provide a comfortable house, food, clothing, education, healthcare, entertainment, child care, gifts, etc. I have been tracking my household expenses for quite a long time with separate columns for my kid’s expenses. Hence, I have a pretty good idea on how much money was spent on each of my three kids, each month.

My spouse and I have been doing quite well coping with the cost of raising our three kids and we never really needed to analyze the total expenditure. Anyway, out of curiosity I decided to calculate how much money was spent on each kid as I have the data readily available. I used the two previous year’s data (2010 & 2011) to do my tallying-up. As expected, a large chunk of expenses went towards education and covers school fees, tuition cost, transportation cost, lunch or pocket money, school books, workbooks, uniforms, stationeries and other things that a student requires.

During the two years, the two older boys attended a Chinese primary school where their lessons start at 7.00 am until 3.00 pm in the afternoon. Each of them generally needs RM4 on average each day to spend on food during recess and lunch hour in school. They normally take breakfast at home and will sometimes bring food from home.

The figures I got for last year (2011) is as follows:

Each child has a health (cum education) insurance coverage. Therefore, about one-quarter of the cost above is due to payments of the insurance premiums. My daughter goes to a Chinese kindergarten and her school fees is RM140 a month and she does not get pocket money as the school provides food during recess. She had serious dental problems last year and that incurred a few hundred ringgits in treatment cost.

Below are the figures for the year 2010

My second son had a slightly higher expenditure compared to the rest due to dental treatments as well. He had to get a temporary brace to straighten out his front teeth. Similar to the previous year, one-quarter of the total expenses went towards their insurance premiums. The bulk of the expenses actually go to education related expenses.

From the two figures above, I can conclude that each kid requires RM4000 – RM5000 annually to support and cover his/her expenses. Annually, that comes up to RM12, 000 – RM15, 000 on raising three kids. I expect the figures to change as my kids continue to grow and develop. Their expenses will also change according to circumstances and in response to changing needs and wants.

Do you know how much you spend on your kid(s) each year?

Jacquelyn is the co-author of the books “Teaching Your Kids About Money” and “Top 93 Personal Finance FAQs in Malaysia” with KC Lau. Jacquelyn is the pseudonym used by Amy Sipagal.


    3 replies to "Money Spent on Raising 3 Kids"

    • Terry

      Hi,
      I have a 10 month old baby girl, her expenses has been reducing as she gets older but on average I spend around RM1600/mth

      1) insurance RM300
      2) Food – RM300
      3) medical checks RM 150
      4) Clothing – 150 (including diapers)
      5) Toys – RM100
      6) SSPN – RM200
      7) Daycare – RM300
      8) Baby care products – RM100
      9) Baby TV – RM 5

      • KCLau

        It is definitely a lot of money required to raise a kid.

    • Mr M.Y

      Hai Jacq..

      Thanks for sharing. It gave me wide pictures for my financial planning.

      For the time being i have 1 daughter (3 year old and another 1 baby in few month ahead 🙂 ) and my daughter expenses for a year is RM6960, details as follow…
      Rm 130 for takaful
      Rm 200 for baby sitter
      Rm 50 for sspn/saving
      Rm 100 for diapers & cloth
      Rm 100 for susu, food and beverages..

      Resulting rm580/m…

      But i feel still lack in saving…
      I targeting her saving (excluding the insurance) is rm2000 annually, and normally i put more once we receive bonus from our employer…

      If are you feel free, I’m pleased if you give some idea about my expenses..

      Thank you..
      Yassin @ Mr M.Y..

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