Romania is facing a crushing demographic crisis, with the lowest number of newborns recorded in 145 years during the first half of 2023. The dismal 2023 numbers are not isolated and they are part of a larger trend of demographic decline, posing a serious crisis for the country.
Romania’s situation is not unique in Europe, as many other European countries also grapple with aging populations and declining birth rates. In 2021, the average number of children born per mother in the European Union stood at 1.53, with Romania slightly above this average at 1.81 children per mother. Notably, in countries like Italy and Spain, where there are sizable Romanian communities, these numbers are even lower at 1.25 and 1.16, respectively.
Experts attribute this decline to various factors, including the increasing education and career pursuits among women, improved access to contraception and family planning, declining infant mortality rates, and shifting economic conditions that influence lifestyle choices.
As living standards rise, so do the expenses associated with raising a family, posing financial challenges for parents who aspire to have larger families. In response, ClubulCopiilor.ro has undertaken a study to determine the cost of raising a child in Romania. The study, which focused on assessing the minimum cost of raising a child from birth to age 19 in an urban family in Romania, highlights the financial responsibilities faced by parents.
The estimated cost of raising a child in Romania is 384,991 RON, with the cost for a second child slightly lower at 257,625 RON.
For parents planning to have two children, the total cost is projected to be at least 1 million RON until they finish high school. However, it’s important to note that this cost is spread over 19 years, which may alleviate some initial concerns.
How did we calculate this number?
The methodology used in the study draws from an analysis conducted in 2018 by Syndex Romania and the Quality of Life Research Institute, which established the minimum consumption basket for a decent standard of living in Romania. By utilizing this framework and adjusting prices with annual consumer price indices provided by the National Institute of Statistics, ClubulCopiilor.ro arrived at its estimations.
Importantly, the study reveals that the costs for a second child are significantly reduced, benefiting from resources already established during the upbringing of the first child.
Breakdown of the Cost to Raise a Child Based on Expense Type
Understanding the cost associated with raising a child can help parents financially prepare and adapt to the new challenges of family life. We will break down the costs based on the type of expense:
1. Nutrition
To calculate the costs of nutrition, we considered the ingredients needed for food preparation, taking into account the calorie requirements based on age and the distribution of healthy dietary and energy principles.
- In the first 6 months of life, when the child is exclusively breastfed, no additional costs were included. Later, they require approximately 300 kcal/day on average until the age of one.
- As the child grows, the caloric intake varies from 900 kcal/day for ages 1-2 to 2600 kcal/day at the age of 19. This ensures an appropriate approach to nutritional needs based on the child’s developmental stage.
The cost analysis for nutrition in the first year of life includes additional expenses such as breastfeeding counseling (200 lei per session), food diversification from 6 months to one year, with an average of 300 kcal/day, and the need for vitamin D supplements, along with exclusive breastfeeding up to 6 months.
| Age | Daily Required Calories | Average Annual Cost | Total Cost |
|---|---|---|---|
| 6 months – 1 year | 300 kcal/day | 444 RON | 683 RON |
| 1-6 years | 1100 kcal/day | 3,412 RON | 17,062 RON |
| 6-11 years | 1600 kcal/day | 5,008 RON | 25,042 RON |
| 11-15 years | 2050 kcal/day | 6,417 RON | 25,668 RON |
| 15-19 years | 2450 kcal/day | 7,669 RON | 30,676 RON |
| Nutrition Expenses | 99,131 RON | ||
2. Clothing
For the first year of life, the following clothing items were taken into account: 20 onesies, 12 jumpsuits, 12 thin pants, 2 pairs of newborn gloves, 8 hats, 20 pairs of socks, 2 thick blouses, 2 pairs of thick pants, a set consisting of a scarf-hat-gloves, 2 pairs of booties, 2 winter rompers, 2 overalls for spring/fall, and 2 sets consisting of a blouse/pants or 2 dresses (see APPENDIX).
For the age range from one to 19 years, jackets, winter-appropriate footwear, sportswear, and summer clothing were added, as well as underwear, while excluding onesies, jumpsuits, and other items specific to infants.
| Product | Quantity | Product | Quantity |
|---|---|---|---|
| Winter Clothing (coat, jacket) | 1 pc./year | Spring Footwear | 2 pcs./year |
| Winter Pants | 1-2 pcs./year | Fall Shirts/Blouses | 1-2 pcs./year |
| Sweater | 1-2 pcs./year | Summer Pants (shorts) | 2 pcs./year |
| Scarf | 1 pc./year | Summer Footwear | 2 pcs./year |
| Gloves | 1 pc./year | Tracksuit | 2 pcs./year |
| Hat | 1 pc./year | Sport Shoes | 2 pcs./year |
| Winter Footwear | 2 pcs./year | T-shirt | 5 pcs./year |
| Spring/Fall Jacket | 1 pc./year | Socks | 11 pcs./year |
| Spring Pants | 1-2 pcs./year | Pajamas | 1 pc./year |
| Dress | 1-2 pcs./year | Underwear | 11 pcs./year |
| Skirt | 1-2 pcs./year | House Slippers | 1 pc./year |
The clothing expenses, divided by age categories, are as follows:
| Age | Average Annual Cost | Total Cost |
|---|---|---|
| 0-1 year | 2,124 RON | 2,124 RON |
| 1-6 years | 2,575 RON | 12,875 RON |
| 6-11 years | 2,908 RON | 14,540 RON |
| 11-15 years | 3,106 RON | 12,424 RON |
| 15-19 years | 3,244 RON | 12,976 RON |
| Clothing Expenses | 54,939 RON | |
3. Family Vacations
An annual 7-day vacation in Romania with hotel accommodation and railway transportation was included. The cost associated with the child refers to the difference between the vacation cost for 2 adults and the vacation cost for 2 adults and one child of the respective age.
| Age | Average Annual Cost | Total Cost |
|---|---|---|
| 1-6 years | 95 RON | 475 RON |
| 6-11 years | 421 RON | 2,105 RON |
| 11-15 years | 671 RON | 2,684 RON |
| 15-19 years | 944 RON | 3,776 RON |
| Vacation Expenses | 9,040 RON | |
4. Social Inclusion
- Teatre, Cinemas, and Museums:
- Teatre: Attendance at theatrical events once every 3 months starting at the age of 6.
- Cinemas: Watching a film at the cinema once every 3 months starting at the age of 6.
- Museums: Exploring museums starting at the age of 6. Up to the age of 12, the cost of the accompanying adult’s ticket was included.
- Books and Continuous Education: purchasing books and other cultural and educational products worth approximately 32 lei/month.
- Extracurricular Activities and Personal Development:
- Participation in Extracurricular Activities: Starting at the age of 7, transitioning from occasional participation to workshops and play areas in the early years.
- Pocket Money: Weekly allowance, starting at the age of 15, ranging from 20 lei/week in the 9th grade to 50 lei/week in the 12th grade.
- Sports and Recreational Equipment:
- Rollers/Skates: Purchasing a pair every 4 years, starting at the age of 8 (budget 200 RON/pair).
- Tricycle: Procuring a pedal-less bike/tricycle/scooter for children aged 2 to 5 (budget 170 RON).
- Bike with Training Wheels: For children aged 5 to 8, including protective gear (budget 660 RON).
- Bicycle: For children aged 9 to 12, including protective gear (budget 1,340 RON).
- School Camp:
- Participating in a school camp during high school (budget 2,000 RON).
| Age | Average Annual Cost | Total Cost |
|---|---|---|
| 0-1 year | 385 RON | 385 RON |
| 1-6 years | 806 RON | 4,030 RON |
| 6-11 years | 2,259 RON | 11,295 RON |
| 11-15 years | 2,184 RON | 8,736 RON |
| 15-19 years | 2,468 RON | 9,872 RON |
| Expenses for Participation and Social Inclusion | 34,318 RON | |
5. Communication
A significant stage in children’s upbringing is the introduction of modern communication through smartphones and mobile phone subscriptions. This decision requires a careful and responsible approach to ensure a balance between connectivity and proper technology management. Here is how this expense is planned:
- Smartphone: The purchase of a smartphone is considered starting at the age of 12. A smartphone is not only a communication device but also a tool for learning and exploration (budget 520 RON/piece, usage period 4 years).
- Low-cost mobile phone subscription: Alongside acquiring the smartphone, a low-cost mobile phone subscription is planned. This provides the child with access to communication and the opportunity to develop responsibilities related to conscious use of mobile technology (budget 30 RON/month).
| Age | Annual Average Cost | Total Cost |
|---|---|---|
| 12-15 years | 489 RON | 1,467 RON |
| 15-19 years | 522 RON | 2,088 RON |
| Communication Expenses | 3,555 RON | |
6. Education
Within the education expenses, a series of costs have been estimated to support and encourage academic progress and the child’s involvement in school activities. The assumption is that the child/children will be enrolled in the public education system, and additional costs for tutoring have been considered optional, even though they are common for many families. Here is how these expenses are planned:
- Acquisition of a personal computer at 13 years old: With the onset of adolescence, the child benefits from an essential tool for education and online exploration (budget 1,990 RON).
- School supplies: Purchasing necessary supplies such as pencil cases, standard notebooks, and pens contributes to preparing the child for the school environment (budget allocated starting from 3 years old, ranging from 100 RON/year to 544 RON/year in the final year of high school).
- Textbooks, collections, and special notebooks: Ensuring essential educational resources for each school year, including textbooks, collections, and specialized notebooks (budget allocated starting from 6 years old, ranging from 140 RON/year to 293 RON/year in the final year of high school).
- Holidays and end-of-year events: Participation in school festivities and events, thus contributing to the child’s educational and social experience (budget allocated starting from 3 years old, ranging from 46 RON/year to 213 RON/year in the final year of high school).
- Class fund: A voluntary contribution to the class fund (budget allocated 200 RON/year). Even though it is no longer officially legal, the practice continues due to the need to cover specific class expenses. Parents manage the fund and collectively decide on its use.
- After-school program (only for primary grades, from 6 to 11 years old, budget allocated 2,440 RON/year).
- Recreation trip/”School Otherwise” (alternative school activities): A special trip that complements the educational experience, providing moments of relaxation and exploration outside the school environment (budget allocated starting from 6 years old, ranging from 187 RON/year to 390 RON/year in the final year of high school).
| Age | Annual Average Cost | Total Cost |
|---|---|---|
| 3-6 years | 386 RON | 1,158 RON |
| 6-11 years | 3,466 RON | 17,330 RON |
| 11-15 years | 1,610 RON | 6,440 RON |
| 15-19 years | 2,004 RON | 8,016 RON |
| Education Expenses | 32,944 RON | |
7. Personal Hygiene and Household Use
The expenses associated with personal hygiene and household use reflect the attention given to family health and comfort. To accurately assess the costs of this nature, a weighting method was used with the help of equivalence scales.
Essential products for hygiene and the proper functioning of the household are included, ensuring a suitable environment for the child’s harmonious growth and development.
- Personal Hygiene Products: Expenses for items such as shampoo, soap, toothpaste, toothbrushes, skincare products, and others, intended to support the daily personal hygiene of each family member.
- Household Use Products: Purchasing items for cleaning and maintaining the home, such as laundry detergent, cleaning products, as well as other essentials for maintaining a healthy and clean environment.
- Baby Care Products: For young children, this category includes diapers, wet wipes, diaper creams, moisturizing oil.
| Age | Annual Average Cost | Total Cost |
|---|---|---|
| 0-1 year | 2,477 RON | 2,477 RON |
| 1-6 years | 558 RON | 2,790 RON |
| 6-11 years | 409 RON | 2,045 RON |
| 11-15 years | 539 RON | 2,156 RON |
| 15-19 years | 838 RON | 3,352 RON |
| Personal Hygiene and Household Expenses | 12,820 RON | |
8. Housing
Expenses related to housing cover a range of essential aspects to ensure a safe and comforting environment for the child’s upbringing. We analyze three major components of these expenses:
- Monthly rate for a mortgage: We considered a monthly rate for a mortgage of 13,500 euros over a period of 30 years with an effective annual interest rate of 8.06%. This reflects the difference between the price of a 2-room apartment with an area of 52 m2 (the legal standard for 2 adults) and a 3-room apartment with 66 m2 (the legal standard for 2 adults and one child) at an average cost per square meter of approximately 964 euros per square meter. The monthly rate is included in the cost assigned to the child.
- Child’s room furnishings: In the first year, expenses for essential items such as a baby bed, changing table, mattress, etc., were considered. Between 2 and 6 years, the room furniture was added, such as a junior bed, nightstand, wardrobe, carpet, and by the age of 11, a desk and a bookshelf were included to support the educational process.
- Monthly housing expenses: This category covers various aspects such as the necessary heating energy, additional tax for the 14m2 area, and a portion of water and electricity consumption.
| Age | Annual Average Cost | Total Cost |
|---|---|---|
| 0-1 year | 7,692 RON | 7,692 RON |
| 1-6 years | 6,933 RON | 34,665 RON |
| 6-11 years | 6,890 RON | 34,450 RON |
| 11-15 years | 6,779 RON | 27,116 RON |
| 15-19 years | 6,933 RON | 27,732 RON |
| Housing Expenses | 131,655 RON | |
9. Transportation
The cost of a discounted public transportation subscription has been considered starting from the age of 6. Although the new Education Law, in effect since September 2023, provides free public transportation for all students throughout the school year, we will maintain this minimum amount in the transportation cost analysis due to the recent implementation and challenges faced in some areas.
Expenses for transporting the baby (0-1 year) include a 3-in-1 stroller (800 RON), an ergonomic baby carrier (450 RON), a stroller blanket (50 RON), and a winter bag (50 RON), totaling 1,350 RON.
| Age | Average Annual Cost | Total Cost |
|---|---|---|
| 0-1 year | 1,350 RON | 1,350 RON |
| 6-19 years | 403 RON | 5,239 RON |
| Transportation Expenses | 6,589 RON | |
For families navigating the financial realities of raising children in Romania, this study provides valuable insights into the costs associated with parenthood and underscores the importance of financial planning.
Exploring Variations in Childcare Costs Across Romania’s Major Cities
In a quest to understand the financial landscape of raising children in Romania, our team embarked on a journey to ascertain the minimum costs associated with childcare in different urban centers across the country. This investigation aimed to shed light on the diverse economic factors shaping the upbringing of children in various regions.
The analysis delved into the urban pricing standards for essential services and products crucial for child rearing. While certain expenses, such as those for food or clothing, exhibited minor discrepancies across major cities, other categories, such as housing costs or specific service fees, showcased significant variations.
