The amount grows with the child
Based on the education rates provided by municipalities, average prices of food, clothing, and housing, and the “Numbeo” database, in the first four years of life, about 5.1 thousand euros per year per child should be planned in Vilnius and 4.2 thousand euros elsewhere in Lithuania.
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In the 4–7 year period, the amount increases to about 5.6 thousand and 4.4 thousand euros, in the 8–12 year period – up to 6.1 thousand and 4.9 thousand euros, and in adolescence – up to 7.5 thousand euros in the capital and 6 thousand euros in other cities and regions of the country. The main differences in expenses between cities are due to higher housing, food, and leisure costs in the capital.
“Expenses for diapers and milk formulas later turn into expenses for clubs, camps, technologies, and more complex needs,” says Rolandas Norvilas, head of the Lithuanian branch of Bigbank.
Among the largest ongoing expenses when raising a child remain food, clothing, and footwear costs, but a significant part of the family budget is also made up of other categories.
Housing. An additional room and higher utility bills increase family expenses by an average of 110–150 euros per month. If the family needs to rent or buy a larger home because of the child, especially in Vilnius, actual expenses can be much higher. Even without moving, children’s furniture, space for belongings, and other housing adaptations are needed.
Care and education. Expenses for a public kindergarten in 2026 usually amount to about 80–100 euros per month, depending on the municipality, days attended, and meals. For example, in Vilnius, a monthly education fee of 26 euros is applied, and meals three times a day cost 2.90–3.40 euros per attended day. Later, the kindergarten fee is replaced by school lunches, lessons, and other learning expenses. Families choosing private education spend even more.
Leisure. One club usually costs about 30–60 euros per month, although part of the amount may be covered by the non-formal education basket.
“Besides daily expenses, parents also face larger one-time purchases that can significantly impact the family budget if not prepared for in advance: a baby stroller, crib, mattress, car seat. Later, every few years, a new phone or a computer suitable for studies must be purchased,” says R. Norvilas.
Why raising a second child is cheaper but not by half
For the second child, everything does not need to be bought anew. The family can use the same stroller, crib, some clothes, toys, books, sports equipment, and other items. The need for a larger home or car also does not always double. Therefore, it can be assumed that expenses for the second child up to four years are about 25% lower, for a 4–7-year-old child – 20%, for 8–12 years – 15%, and for a teenager – 10 percent.
However, food, kindergarten or camp fees, medicines, tickets, clubs, and often technologies are purchased separately for each child. It is harder to save when the age difference between children is large, their needs differ greatly, or previously used items are no longer suitable.
According to these assumptions, the second child would cost about 92.9 thousand euros in Vilnius and 74.6 thousand euros elsewhere in Lithuania until adulthood – about 16% less than the first.
Financial security is important, but money alone is not enough
The topic of expenses is especially sensitive as the demographic situation worsens. According to official data, about 17.5 thousand babies were born in Lithuania in 2025 – about 8.4% less than in 2024. The total fertility rate decreased from 1.11 to 1.04 children per woman and remains more than half lower than the replacement level of about 2.1.
“Financial stability, housing conditions, and the ability to balance work and family life – all of this is very important. Therefore, the state should do everything it can to reduce the negative impact of economic factors on fertility,” says Raul Eamets, chief economist at Bigbank.
According to the economist, financial factors are especially important for families considering another child. However, demographic problems cannot be reduced to a single benefit or tax relief.
Understanding the true scale of expenses, it is also important for parents themselves to prepare for them in advance. Financial planning helps not to confine parenthood but to reduce stress and ensure a stronger start in life for the child.
For long-term savings, for example, for a child’s studies, ETFs can be chosen, and for very long periods – third-pillar pension funds. Term deposits are suitable for planned larger purchases, and savings deposits for financial reserves.
“Of course, money is not everything – cultural values also have great importance. There is no single magical economic measure that would solve all demographic problems, but as many as possible should be tried,” summarizes R. Eamets on the links between demographic and economic situations.
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