Not the US, 2 East Asian countries have the most expensive child rearing costs in the world

No matter where you live in the world, the cost of raising children is extremely expensive. But what makes many people surprised is that the US is ranked in the middle of the Top 14 countries with the highest child-rearing fees in the world. Meanwhile, China has become one of the countries with the most expensive child-rearing fees in the world.

CNN cited a study by Jefferies using data from the Yuwa Population Research Institute, showing that South Korea topped the list of countries with the highest cost of raising a child from birth to 18 years old based on the percentage. Per capita GDP.

China is currently one of the most expensive countries in the world to raise a child. (Photo: Xinhua News Agency)

In terms of absolute money alone, China is one of the “cheapest” places to give birth. “But as a percentage of median income, China is the most expensive place to raise children,” according to the Jefferies researchers. China is second, followed by Italy. The US is in the middle of the Top 14 countries with the highest child-rearing costs when it is between Germany and Japan.

So what makes East Asia the most expensive region to raise a child? The biggest reason is the cost of education and care for children in the first years of life. In particular, child and child care and education services in China are still in the private sector.

Specifically, the cost of raising a child until the age of 18 in China is more than $75,000 and an additional $22,000 to complete a university degree.

“Although tuition fees are cheaper in China than in the US, there is a key difference. In many Western countries, it is more common for governments to have student loans, whereby the financial burden is transferred from parents to children.

As in the US, in 2019-2020, 55% of college graduates carry debt, College Board data shows.

Policymakers say that governments have many solutions to reduce the cost of giving birth and raising children to help couples, such as subsidizing child care to close the gap between those with high incomes and those with high incomes. short.

According to the announced five-year plan, the Chinese government now aims to increase the number of kindergartens for children under three to 4.5 per 1,000 people by 2025, an increase of 2.5 times from the current level. 1.8/1,000.

According to a report by Jefferies, China currently has 42 million children under the age of 3. Of these, one-third of parents want to send their children to kindergarten, but only 5.5% can afford to send their children to school.

Demographic-economic paradox

Birth rates in rich countries are often much lower than in developing countries. This is called the “demographic-economic paradox,” meaning that richer people will choose to have fewer children than low-income people.

“In the context of China’s economic development, it is highly likely that this country will fall into the same demographic and economic adversity as many other developed countries, and the birth rate will drop to a lower level than many other countries. expectant,” emphasized Jefferies’ analysis.

In fact, many couples in China now choose not to have a second child due to the rising cost of raising a child. While the West tends to want to have 2-3 children, the East goes the opposite way.

More importantly, the marriage rate in the East is also on a downward trend. In addition, in Asian culture, giving birth without marriage is not as common as it is in the West.

Demographic trends such as birth rates also affect a country’s economic and business performance. As the country has an aging population, the burden on the welfare system including retirement and social security will also be huge. Gradually over time, production activities will have to switch to automation to compensate for the shortage of human resources.

And yet, demographic trends also affect companies and the stock market, although this effect will occur over the next few decades.

Therefore, Jefferies hopes that governments will have more measures to help reduce the burden of child rearing costs, especially in China. These methods can be tax breaks and financial aid.

According to Minh Thu