Raising children in North Macedonia costs at least 2,400 euros per year. Due to the high level of expenses, childcare is pushing families toward poverty. Prime Minister Mickoski warns about the decline in birth rates bën thirrje on couples to have more children, yet on the other hand the state does not provide adequate support to enable couples to raise children without experiencing financial insecurity.
Research conducted by the Center for Equality and Justice, which includes 646 respondents and four focus groups with parents, brings to light the annual expenses of parents (covering only basic needs), which reach up to 3,200 euros. The following table presents annual expenses for each age group of children, from the first day of birth up to the age of 18.
tabela për shpenzimet by Era Gjakova
As can be seen from the table, expenses are never below 2,400 euros in any year. The lowest expenses, respectively 2,400 euros, are recorded from ages 7 to 14, while every other age group exceeds the amount of 2,445 euros. Children aged 15–18 have the highest expenses, namely 3,200 euros. Neda Çalovska Dimovska from the Center for Equality and Justice states that respondents identified even higher expenses, depending on age, than the general research data.
“As for costs by age, our respondents reported the highest expenses for adolescents, reaching up to 200,000 denars per year, followed by infants up to the age of two, reaching up to 190,000 denars per year, and then children in primary education, reaching up to 150,000 denars per year."
However, these figures do not reflect the real amounts parents spend each year on their children, as there are hidden costs that are not discussed even though they represent a heavy burden for parents, says Neda Çalovska.
“The research revealed that there are many hidden costs throughout the entire education system, from kindergarten to the completion of secondary education. There is no free education, nor is the amount in daycare truly 2,000 denars, given that parents pay for work materials, hygiene supplies, books, equipment, sports activities, photographs, performances, excursions, and other hidden costs.”
Taking into account the annual expenses of raising children, economist Abil Baush states that with the minimum and average wages available in North Macedonia, it is difficult to live comfortably without fear of poverty.
“From an economic perspective, considering the real documented costs of raising a child in North Macedonia, it is very difficult for families living only on the minimum wage, and often even on the average wage, to afford raising children without being exposed to financial insecurity.”
Financial insecurity increases, and parents are even forced into debt when families have more than one child, the economist adds.
“Monthly expenses for one child, depending on age, reach levels that constitute a significant share of household income, while for two or more children this pressure increases disproportionately. Under these conditions, families are forced to reduce basic expenses, incur debt, or rely on informal transfers, making financial stability uncertain and short-term.”
HAVING CHILDREN: AN EMOTIONAL OR ECONOMIC DECISION?
The desire to have a large family is increasingly overshadowed by fear and insecurity resulting from the drastic rise in prices and living standards, as well as policies that only declaratively encourage higher birth rates.
Anita Latifi, a mother of two children aged three and four, says that every day is a struggle to reduce expenses, yet they increase as children grow.
“Raising children today is significantly more difficult than it was a few years ago. We are a family with an average income and are constantly forced to balance financially. Prices rise almost every month, while incomes remain the same. Although at first it seems that as children grow some daily expenses such as milk, diapers, and the like disappear, in reality expenses only increase.”
Basic needs continue to be the largest expenses when it comes to raising children, Latifi adds.
“We try not to create dependence on expensive toys and apply the ‘wear and pass on’ practice for clothing, but despite this, the biggest expenses remain food, clothing, health, activities for their development, and daily necessities.”
FINANCIAL INSECURITY REDUCES BIRTH RATES
Abil Baush emphasizes that the consequences of the daily struggle to manage finances so that families do not face poverty are long-term and directly affect the decision to become parents or the number of children they have.
“These financial pressures send clear signals about the current and future birth rate trends in North Macedonia. The decline in fertility is not only a cultural or personal issue, but a direct consequence of economic conditions. The costs of childcare, education, healthcare, and housing create a financial burden that pushes couples to delay the decision to have children, limit their number, or postpone parenthood to a later age. In the long term, this is expected to lead to population aging, a shrinking workforce, and increased pressure on pension and healthcare systems.”
Anita Latifi shares the same view. According to her, the decision to have children is now based on financial situation and the security of providing a stable future for children, rather than on the desire to have a larger family.
“From conversations with young couples, I understand that financial insecurity is one of the main reasons why many couples are postponing the decision to have children or limiting themselves to one or two. Fewer and fewer rely on the popular saying ‘Every child comes with its own fortune’ as a motive or hope that with the arrival of a child the financial situation will improve. Today, children are not only an emotional desire, but also a major financial responsibility. When tomorrow is uncertain, regarding work, prices, health, or education, the fear of not coping prevails over the desire for a larger family.”
Abil Baush assesses that families need significantly higher incomes than the minimum wage and often even higher than average wages. On the other hand, Anita Latifi says that families need systematic support.
“If there would be real support for families, such as economic stability, financial assistance for children, and policies that truly protect the family, many couples would feel more secure about having children or having more children.”
Based on the entire research and surveys conducted, several measures are recommended:
- The situation should be monitored systematically through improving the methodology of the State Statistical Office for household expenditures, by adding questions on the number and age of children in families and conducting targeted consumption analyses, as well as measuring the impact of costs related to different life cycles of children;
- The method and amounts of family support allowances should be reviewed, with the aim of linking them to the real costs of raising a child, rather than determining them administratively;
- Support should be based on market assessments and regularly adjusted to reflect the current needs of families according to the child’s age, family type, and regional differences;
- A minimum basket for children should be defined, through which support would be provided to all families.
