With new estimates putting the cost of raising a child in Hong Kong at HK$6 million(till the child turns 22 and is independent) , it’s no wonder many couples believe they cannot afford to start a family.
According to the latest Census and Statistics Department’s general household survey, the median household income in the first quarter of 2022 was HK$27,900, which would amount to HK$334,800 for the entire year. If we take the HK$284,000 estimated annual cost of raising a child at face value, it is clear that the average local family would struggle to cope.
It takes at least HK$6 million to raise a child in Hong Kong, according to a Hang Seng Bank survey, which costs 55 percent more than 16 years ago. The bank last month asked 633 citizens aged between 30 and 64, who have HK$1 million current assets or more, through online questionnaire, and found that 78 percent of respondents said they emphasise on financial freedom or ideal lifestyle the most.
Among the respondents who were parents, most were willing to take full responsibility on all accounts for their families, of which 79 percent expressed concern about their children’s future, hoping to take care of their children until they graduate and are financially independent. The survey found that it costs HK$284,000 a year to raise a child in Hong Kong now, so it would cost over HK$6 million for nurturing a child until he or she is 22 years old – taking inflation into account.
Does it really have to cost that much money to raise a child in Hong Kong?
The government’s provision of 12 years of free education is well established, while subsidies for kindergarten fees were introduced a few years ago. These policies cover a large proportion of the costs of educating a child. Medical services are also well provided and available essentially free.
However, it is still possible for parents with limited financial resources to provide their children with an effective learning environment. If we look at the top performing students in this year’s Diploma of Secondary Education examinations, several attend local government subsidised schools. The important thing is to provide a stable and supportive environment in which our young people can grow. Yes, having more resources makes this easier. But it doesn’t mean deprived families don’t stand a chance.
There are limited daycare facilities for infants available in Hong Kong as there exists a strong preference towards engaging domestic helpers to take care of young children. The majority of the facilities currently available are government-run and cater to the local community, so most of the care givers in the daycare Centre’s do not speak English.
Most expats find that it does not make financial sense to opt for a private daycare center over hiring a domestic helper, as daily half-day sessions at a private center costs between HK$4,000-$11,000 a month, much higher than the cost of a full-time, live-in helper at HK$3,740 a month.
To support low-income families and break the cycle of intergenerational poverty, the government should provide essential services for schoolchildren. Every child is entitled to a proper education regardless of their financial background.Existing community resources can be deployed more effectively to support children from low-income families to ensure that they are not missing out, which is the guiding principle of the United Nations 2030 Sustainable Development Report “Leave No One Behind”.
With everything said Strong familial and community bonds can help a child grow into a capable and well-adjusted adult, and this is something we all need to work hard to ensure. We will need to invest time and effort there is no short cut.
Content sources ; thenewssavvy.com , expatinfodesk.com , thestandard.com.hk
