Newlyweds "Expecting to spend 1.4 million won per month raising one child... a burden on the household"

Monthly Childcare Costs Exceeding '1.4 Million Won'... Newlyweds Struggling
More 'Undecided' Child Plans as Wife's Age Increases

A survey found that newlywed households without children are expected to spend an average of more than 1.4 million KRW per month on raising each child if they have children. Additionally, regarding future child plans, many respondents answered "have not decided yet" rather than specifying a number, indicating that the socially problematic low birthrate is expected to worsen.

On the 4th, the Korea Institute for Health and Social Affairs published a research report titled "Fiscal Outlook and Improvement Measures for Child Allowance Policy Amid Population Changes" (Principal Researcher: Research Fellow So-Young Lee). The report was created to gather opinions and needs regarding major cash support policies, including child allowances, to utilize for policy improvements. The research team conducted an online survey from May 30 to June 8, 2023, targeting 300 childless households married for five years or less (150 men and 150 women), who are potential recipients of child allowances.

When asked, "If you have children in the future, how much do you think it will cost on average per month to raise one child?" respondents answered as follows: ▲1 million to less than 1.5 million KRW (37.0%) ▲2 million KRW or more (29.0%) ▲1.5 million to less than 2 million KRW (18.7%) ▲less than 1 million KRW (15.3%).

The average expected monthly cost per child was found to be 1,407,000 KRW. The expected monthly child-rearing cost varied according to household income: households earning 8 million KRW or more per month responded with "1,581,000 KRW," while those earning less than 4 million KRW per month responded with "1,308,000 KRW." This indicates a tendency for higher-income households to estimate higher child-rearing costs.

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In response to the question, "How much of a burden do you think child-rearing expenses will be on your household?" the answers were ▲somewhat burdensome (58.7%) ▲very burdensome (35.0%) ▲appropriate (5%) ▲not very burdensome (1%) ▲not burdensome at all (0.3%), in that order.

Regarding future child plans, "one child" was the most common answer at 33.3%, followed by ▲two children (24.7%) ▲three children (2.7%) ▲no plans to have children (1.7%) ▲have not decided how many children to have yet (37.7%). Excluding those undecided, the average planned number of children was 1.45. The planned number of children among childless newlywed households tended to be higher when the wife was younger. It was found that 51.5% of wives aged over 35 had not decided on child plans. The research team explained, "Whether voluntary or involuntary, an older wife’s age appears to negatively affect child planning."

Regarding child allowances, the survey evaluated that they have a somewhat positive effect on reducing the burden of child-rearing costs, decisions to have children, and the healthy growth and development of children, but they do not significantly influence advancing the timing of childbirth.

Meanwhile, Statistics Korea announced in the "December 2023 Population Trends" report that the total fertility rate last year was 0.65, marking the first time it fell into the 0.6 range. The number of births in December last year was 16,253, a 3.8% decrease compared to the same month the previous year. The number of births in the fourth quarter of last year was 52,618, a 6.9% decrease compared to the same period the previous year. With births decreasing and deaths increasing due to aging, the natural population decline per quarter has exceeded 40,000 for the first time.