During a child's first 18 years, parents spend an average of SEK 670,000 on food and other household expenses, according to a calculation made by the bank SEB. Clothing, children's equipment and insurance cost an additional SEK 520,000.
It can be difficult to grasp how much money that is, because it isn't paid in a lump sum but over many years, says Américo Fernández.
In total, SEB estimates that a child costs just over SEK 2.2 million - including the fact that many families need to move to larger accommodation, which according to the bank costs an average of SEK 580,000.
Most expensive at the beginning and end
If you also work part-time, which many parents of young children do, the cost increases to almost SEK 2.9 million.
It's a classic personal finance trap. It means a fairly large loss of income, because it's not just a loss of salary but also of pensions, says Fernández.
Costs are particularly high during the child's first year of life. This is when many more expensive purchases are made, such as strollers and car seats. Then the costs decrease drastically – only to increase again as the child gets older.
A second child is also often not as expensive.
If you have more children, you will have a greater chance of inheriting clothes and belongings.
Others cheaper
But there is a lot you can save even with one, says Américo Fernández. In its calculation, SEB, for example, has included SEK 90,000 in child benefit.
It's not a must and not an opportunity that everyone has. Giving your children a good financial upbringing is not about giving them money but about teaching them the value of money and you can do that in many different ways, he says.
The sum of SEK 340,000 for extra entertainment - which includes gifts, vacations and your own bus pass - can also be skimped on.
And you may need to be stingy: It has become much more expensive. In 2016, a child cost an average of SEK 1,280,000 during their first 18 years, excluding the cost of any part-time work. Ten years later, the same figure is SEK 2,220,000.
Prices have risen. At the same time, the only positive item, child benefit, has been more or less unchanged and has been eroded by inflation, says Américo Fernández.
Are you planning to have children within the next year? SEB's private economist Américo Fernández gives two main pieces of advice:
Save for a starting fund: Aim for around SEK 50,000 for expensive purchases like a stroller and car seat. Feel free to buy used to reduce costs.
Plan parental leave early: Discuss the division well in advance. Whoever is home the longest will suffer a greater loss of income and may miss out on career advancement. Make the decision before the baby arrives and emotions take over.
Source: Américo Fernández, SEB
