It is usually determined according to a formula that accounts for major areas of expenditure, such as food, housing, and clothing.
For example, the rent on a home does not usually change when the tenants have another child, so the family's housing costs may remain the same.
The formula may also account for inflation, as prices are constantly changing, and it will indirectly affect how much it costs to raise a child.
[1] The calculation of the cost to raise a child in developing countries is difficult, since families often do not operate with currency, but barter or trade to provide for their children.
Based on an estimate by Economic Times in April 2011 and adjusted to inflation for August 2022, the cost of raising a child from birth to age of majority (21 Years) for a middle to upper-middle income family comes to about ₹1.17 crore (equivalent to ₹1.2 crore or US$140,000 in 2023) in total.
The 2022 report shows the cost of raising a child from birth to 18 years old as £157,562 for a couple family or £208,735 for a single parent/guardian.
[8] Based on a survey by the U.S. Department of Agriculture, the table below shows the estimated Average Spending on Children by Families.