The Real Costs of Raising Kids in Latin America
A "Geo-Arbitrage" reality check. Because once you pop out some offsprings, the equation changes.
Author
Jake Nomada
Published
Jul 17, 2026
Read time
8 min read
I remember back in the day, some 10+ years ago or so, I was living in lovely Cali, Colombia 🇨🇴
My rent was $350 USD a month or so. I had a nice bed, a kitchen, and a balcony with a view. However, no AC and the shower was one of those “electric shock” ones that can potentially kill you. Sacrifices.
I was broke as hell, but happy as could be.
I ate breakfast out every morning. Three eggs, rice, fresh fruit, and a coffee = $2 USD. I’d go on dates whenever I wanted, often to cheap local brewery type spots. Calenas would come over to my shoebox studio day and night.
I was making maybe $1,200 USD a month, yet actually saving money. Kinda insane to think about nowadays.
Why?
Because as a single broski living the good life in LatAm, you can take full advantage of the “geo-arbitrage” south of the border — earning in dollars, but spending in pesos.
Once you pop out some offsprings, the equation changes.
As a single broski, you’re often saving 50-75% when living abroad vs. a similar-style lifestyle back home.
Once you have kids, you’ll be lucky to save 25-30% raising a family abroad vs. in your home country.
Here’s why…
The Real Costs of Raising Kids in Latin America
Raising kids in Latin America gave me a “geo-arbitrage” reality check, so to speak. It forced me to truly think about the comparison between living with my family in a foreign country vs. moving back to the USA.
I’m still torn on the topic on a number of levels, although heavily leaning towards living in LatAm with my kids.
Below you’ll find a few of my notes on the topic…
Latin America Has Gotten More Expensive
Like damn near everywhere on God’s green earth, LatAm has gotten more expensive post-Covid.
This is for a number of reasons.
For starters, the sheer amount of remittances moving from USA into Latin America each year has skyrocketed.
In 2025, we saw:
- $61.8 billion —> Mexico
- $21 billion —> Guatemala
- $10.5 billion —> Honduras
- $8.5 billion —> El Salvador
- $6 billion —> Nicaragua
Unsurprisingly, that amount of money is going to make things more expensive throughout the region.
Plus, let’s factor in how many more foreigners there are in Latin America these days.
I have no clue on the exact numbers, but it feels like there’s 10X more expats and remote workers down here post-Covid.
And with 35 million digital nomads globally and a combined $700B in spending power, it’s easy to see why prices have shot up in popular spots.
For example:
Mexico City rents are up 51% — with Airbnb listings in Roma/Condesa up 74% since 2019. MedellĂn property prices jumped 17% in 2024 alone. Short-term tenants now often pay 2-3x what annual lease holders do.
I could continue with the statistics, but you get the point.
The “Big Ticket” Item —> Housing
When you add kids into the equation, the days of living in a shoebox studio are gone. Common sense of course, but there’s more to this than meets the eye.
First, you generally need to get a 3-bedroom place — even if you only have one kid. Master (you + girl), bedroom (kid), and bedroom (office for you). Something like that.
Throw more kids into the mix and the dedicated office space often goes away. Now, you’re thinking about 4-bedrooms.
This gets pricey.
I’m currently renting a 4-bedroom apartment in one of the nicer areas of Panama for $3,400/per month + internet and utilities. Roughly $4,000/month total.
More bedrooms dramatically increases costs, of course. It also makes it significantly harder to actually find a place to rent in your budget. There’s just way more rental inventory for studios, 1-bedroom, and 2-bedroom spots than for 3/4-bedrooms. I’m talking 5-10X more availability.
This greatly limits your mobility.
Which makes traveling around with your family more difficult. You can’t just rent one hotel room when you have 3 kids in tow. You almost have to have an Airbnb with multiple bedrooms, even on a short trip.
Oh, and security becomes a far more important item.
When my kids are with me, I only want a gated community or a high-rise apartment with security present 24/7. Just a non-negotiable. Again, this raises costs.
International Schools are NOT Cheap
Now let’s get into the education side of things…
One of the biggest benefits of my home country, the USA, is the public school system. At least in my opinion.
If you’re living in a good district, the public schools generally are very good and a viable option. In good school districts in the USA, I’d compare the level of education to a mid-tier private school in LatAm — maybe better.
And it’s “free” — well, kind of.
In Latin America, public schools are not an option. At least not for me or my family. I’ve heard of expats sending their kids to public schools in places like Costa Rica, but I want to give my children a far better education than that.
So, we’ve got international private schools in Latin America, often bilingual to some degree.
Some are incredible, as I’d imagine a school like Nido de Aguilas in Santiago, Chile would offer a very good education.
Others look fairly marginal.
From a pricing perspective, things vary wildly. Age of the children also plays a huge role.
For pre-school up to age 6/7 or so, costs are reasonable. You’re looking at $300-800 USD a month per child.
Currently, my kids go to pre-school 5-hours a day and we pay $550 a month/per kid. $1,100 in total. Not bad.
There’s also many options available in this age range. Typical pre-schools (often called kinders or jardins down here), Montessori schools, and higher-end options attached to some of the popular international schools.
Once a kid starts elementary school, costs tend to go up. I’ve seen pricing from $500-2,000 a month. Generally, you’re looking at $750-1,250 per kid around these ages for an international school with a fairly high education level.
High school is where the costs tend to skyrocket.
A good international school in Latin America, one that has a track record of getting kids admitted to decent universities in the USA and Europe, will typically costs $12,000-26,000 usd per year.
For a single child, this seems reasonable.
I have 3 kids, all close in age. I could be paying north of $60,000 USD per year pre-tax to send my kids to private school down here in the future.
Not cheap.
Does AI Change This Equation?
I’ve had this conversation with a number of friends I consider smarter than I…
AI is going to change education here soon. In some way, shape, or form.
Will AI change the need to send your kids to private, bilingual school while living abroad?
I don’t know the answer, but there’s definitely a chance things play out like that.
Just look at what’s happening with Alpha Schools in the USA. AI power education. expanding all over the USA and Puerto Rico.
They’re rolling out a homeschool offering, which should be cheaper than sending kids to private school abroad.
I have no doubts this sector will continue to grow in the future, and may very well be a fantastic option for families abroad here soon.
Only time will tell, but this could greatly tip the “geo-arbitrage” scale back in the favor of living abroad for families.
Just food for thought…
Healthcare and Essential Services for Families
Back in the day when I was a pobre, I traveled around Latin America with no health insurance whatsoever. Never had an issue.
Once I could afford it, I did get an international health insurance plan — inpatient only.
Inpatient is basically what an “emergency” plan would be in the USA. It’s only good for major things, like surgeries and overnight hospital stays. Anything day-to-day, like a doctor’s appointment or medication, is covered by you out-of-pocket.
These run $75-200 a month depending on what countries you add to the plan. Back then, mine costed about $140 a month with all of Latin America + the USA.
I’ve used Cigna Global for years and would recommend them.
Now that I have my family on a similar plan, we pay around $1,000/month for 6 people. Not cheap, but they do cover things and pay out claims on a reliable basis.
I’ve got over $20,000+ USD covered by Cigna Global over the years.
Now, when comparing this to the USA, I believe it is still far cheaper vs. getting health insurance for a family as a self-employed person in the States. Could be wrong though.
Outside of this…
Doctors visits in Latin America range from $20-100 USD per visit.
Physical therapy is $20-45 USD per session, often the therapist will come to your house, too.
You can get many medications delivered straight to your front door via apps without a prescription, which is nice.
If you find a home down here, there are many cheap health insurance options in various countries down here.
Something like $100 bucks a month for a family and it saves you money on doctor visits, hospital stays, etc. in their network. Many expat families opt for this to save money.
Lastly…
One item that is vastly cheaper than the USA or Europe?
Services, like having a maid or nanny.
Having a maid in LatAm runs $25-60 USD per day, often for 4-8 hours of cleaning. In Mexico, I once had a full-time maid for $150 bucks a week. Insane value.
Culture and Your Kids
One thing that continually crosses my mind when thinking on this topic…
If you choose to raise your kids abroad, in a foreign country, will your kids end up being like you?
Will you be able to relate to your children as they get older?
I don’t know the answer.
Local culture is going to shape your children on some level. Even if you send them to a high-end private school abroad, it’s not going to be the same experience you had going to school in your home country.
Your kids will grow up in a culture that is foreign to you.
Now, obviously the age old adage, “the apple doesn’t far fall from the tree” will apply here too.
But I haven’t a clue how that equation works out.
Like, I hate soccer with a passion. If I raise my kids in LatAm, it’s likely they play soccer their whole lives and end up loving the game.
Minor issue, of course.
But bigger issues could pop up. Things like how they view the world, who their friends are, and what they believe in could all be different than how you view things.
The Value of Being a “Foreigner”
While we all have different situations and backgrounds, if you’re similar to me and been traveling abroad for 5-10+ years…
You enjoy being a foreigner.
You like not having to hear about the politics of your home country while grabbing a coffee in the morning.
You enjoy being able to tune out the local language and just stay in your thoughts completely while out and about.
You don’t mind the preferential treatment you get as a foreigner in many places.
There is value for people like you and I in being a foreigner. Being different. If we’re being honest, we enjoy this aspect of living abroad.
When you start to think about moving back home, this has to be weighed into the equation, as well.
Again, just more food for thought.
“Geo-Arbitrage” and Future for Families Living in LatAm
From a pure cost basis, I believe Latin America is still potentially 25-30% cheaper for families choosing to raise their kids here vs. the USA for example.
Only on an “apples to apples” comparison.
But this conversation is about far more than costs…
Culture, security, safety, and the value of being a foreigner all need to be factored in. And honestly, I’m far from having all the answers at this stage in the game.
What do you think? Did I miss anything? Let me know.