The Federal Statistical Office has calculated how much money parents spend on their children on average per month (chart):
In Germany, couples with one child spent an average of 763 euros per month on consumer spending for their offspring in 2018.
The following applies: the older the children, the more expensive. If 679 euros per month are enough for a child up to six years old, 12 to 18-year-olds consume 953 euros in the same period. Expenditures for insurance or pensions are not even included in this total, nor is loss of earnings if one of the parents temporarily limits their work or gives it up completely because of childcare. The actual costs are therefore much higher.
Single parents spend most of their budget on children
The extent to which children invest money only becomes clear when one compares the consumer spending of the little ones with the total consumer spending of the household in which they live. Of the 3,593 euros that a family of three has on average per month for consumption, 21.2 percent goes to the child.
If there are several children in the family, this proportion increases, but only disproportionately: A family with three children, for example, spends around 41 percent of its consumption budget of just under 4,300 euros on the offspring. It is entirely plausible that it is no more than 60 percent, i.e. three times the proportion for an only child. Because many purchases that are made for the first child can also be used by other children – be it the furniture in the children’s room, the clothes or the toys.
The bill for single parents is much less favorable: If you have a child, their consumption takes up an average of 35 percent of the available budget of around 2,000 euros. With two children, the proportion even rises to a good 45 percent.
More than half of this money, namely 60 percent, is spent by single parents solely on covering their children’s basic needs, including food, clothing and housing. Accordingly, less is left for leisure activities, vacations or additional educational offers than with couples who invest a maximum of 50 percent of the consumer budget for the children in basic care.
A look at the consumer spending for children reflects the social conditions: Depending on how high the parents’ income is, the expenditure for the children also varies greatly.
The needs of the children change with increasing age, which is also reflected in consumer spending: While childcare costs are still a major cost factor for parents with children of preschool age, expenses for food or leisure activities are more important for older children.
Expenditure on children varies greatly depending on income
A look at children’s consumer spending reflects the social conditions in which they grow up. Depending on how high the parents’ income is, the budget for the children also varies greatly (chart):
On average, parents in the tenth, i.e. the highest-income tenth, spend almost three times as much on their children as parents in the first, i.e. the lowest-income tenth.
There are major differences, particularly in health care: Financially well-off families pay around ten times more for medication, doctor’s fees and therapeutic options for their offspring than parents from financially modest backgrounds. Expenditure on accommodation and restaurant services also reveals a large social gap: holiday trips or visits to restaurants are often not possible for lower-income families, or at least significantly less often.
As far as leisure activities are concerned, children from high-income families also benefit enormously: Hobbies such as learning to play musical instruments, sports, going to the cinema, etc. cost these families around four times as much as low-income families, and the expenses for educational opportunities are around three times as high.
For the German economy, children mean billions in sales:
In 2020, German citizens alone spent 2,450 billion euros on baby and toddler equipment in the first three years of life.
However, that was a little less than in the pre-Corona year 2019. For example, sales of prams and car seats fell in 2020 – if no excursions can be made, the need is also lower here. In 2021, however, parents have already bought more buggies and the like. Sales of toys have also increased. Last year it amounted to 3.8 billion euros and thus slightly exceeded the value of 2020. In that year, sales had even increased by almost 9 percent: the children stuck in lockdown had to be kept busy and – as best as possible – kept happy.
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