When raising children costs more than parents expect

Raising children often comes with unexpected financial burdens, as everyday needs such as groceries, meals, and clothing can quickly strain a household budget, according to a recent study. In the face of these mounting costs, many parents find themselves adjusting their spending habits to accommodate the added expenses. A survey by fintech platform Versa revealed that 66% of parents were spending more on their children each month than they had anticipated, with 27% finding the increase to be "much higher" than budgeted.

Food and daily necessities emerged as the top monthly expense, cited by 70% of respondents, closely followed by education fees and tuition at 69%. The survey of 677 parents among 2,565 Malaysians highlighted that reducing personal and lifestyle spending, postponing major purchases, and seeking additional income were the most common strategies employed by families to manage their finances.

Despite these adjustments, a significant majority of parents—78%—still set aside savings or investments for their children's future, demonstrating a commitment to their long-term well-being. The study underscores the complex challenge parents face in balancing immediate financial pressures with the desire to provide a stable foundation for their children's future.