The Real Costs of Raising Kids in Latin America
A "Geo-Arbitrage" Reality Check
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. Medellín 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.
Lastly…
I just published a similar guide in 2026 and changed the budget to $2,000/per month.
