High cost of living: Families with children face record rise in expenses

The cost of living for families with children increased far more than for other households in 2024 compared to 2023, according to data from the Household Budget Survey.

Monthly expenses for families with two adults and children rose by 14.7% last year the highest increase among all household types.

Such a family now needs about 106,000 lek per month to cover living costs (around 14,000 lek more than a year earlier), compared to the national average of 93,000 lek per month. This shows that families with children have faced sharp increases in costs for food, education, energy, and transportation.

Single-person households recorded only a slight rise in monthly spending up 1.7% from a year earlier, reaching 56,895 lek. Meanwhile, single parents with dependent children saw a more significant increase of 8.3%, indicating that this group has been hit harder by rising prices and the growing costs of childcare.

Families with two adults and no children experienced a 10% increase in spending, from 71,792 to 79,004 lek.

On the other hand, larger households those with three or more adults and no children recorded a more moderate rise in expenses: 7.7% for childless households and 5.5% for those with children.

This suggests that economies of scale, through cost-sharing among more members, may help cushion the impact of inflation.

The increase in living costs for families with children indicates greater financial pressure on larger households and may reflect both the effects of domestic inflation and changes in the prices of basic consumer goods.

Families with children are particularly sensitive to fluctuations in food prices. In 2024, the prices of essential products especially dairy, meat, fruits, and vegetables remained higher than the average of previous years. As a result, monthly expenditures rose significantly for households raising growing children.

School, daycare, course, and extracurricular activity fees have also increased significantly. Although public education is free, many families rely on private schools, tutoring courses, or sports and cultural activities. These costs rose sharply in 2024, reflecting inflation in the services sector.

As children grow, the range of products and services a family must purchase expands clothing, books, technological devices, internet, and more.

In addition, for families who do not own their homes, the rise in rental prices has been another major burden. According to recent trends in the housing market, rents in major cities such as Tirana, Durrës, and Vlorë increased notably during 2024, putting additional pressure on families with more members who need larger living spaces.

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