Dad, I am going to be one expensive child!
A couple of days ago, I read the below article via a Yahoo News Feed. It is going to cost $221,000 to raise just one child! My mind exploded. I was like “I will spend that much just on Rylan! New Dads, you better watch out!”
I know diapers are expensive, but come on! This article does need to go into more detail. I did the kind service for all the new dads out there and pulled out some numbers. After the below article, I broke it down 7 possible expenses to get your mind thinking of where could all your hard earn money go to.
You may see the below story here or at Yahoo!
Middle-income family spends $221,000 to raise baby
By BETSY TAYLOR, Associated Press Writer Betsy Taylor, Associated Press Writer – Tue Aug 4, 4:50 pm ET
ST. LOUIS – It’s no secret that raising children can be expensive, but how about nearly a quarter of a million dollars expensive?
A government report released Tuesday says a middle-income family with a child born last year will spend about $221,000 raising that child through age 17.
The report by the USDA’s Center for Nutrition Policy and Promotion identified housing as the largest single expense, followed by food and child care/education costs. The $221,000 in expenses rises to about $292,000 when adjusted for inflation.
USDA economist Mark Lino, who co-authored the report with Andrea Carlson, often hears people say children cost a lot when the annual findings are issued.
“I tell them children also have many benefits, so you have to keep that in mind,” he said.
Families with more income spend more money on child-related costs, the report said. A two-parent family that earns less than $57,000 annually will spend about $160,000 on a child from birth through high school. Those with an income between $57,000 and $99,000 spend about $221,000 and those with higher incomes are expected to spend roughly $367,000 through age 17.
Most single-parent households in the U.S. make less than $57,000 and are expected to spend about 7 percent less on child-rearing costs compared to two-parent households in that same income group, according to the report.
Costs of raising a child are highest in the urban northeast and lowest in the urban south and rural areas.
The USDA report helps courts and states determine child-support guidelines and foster care payments. It does not address costs specifically related to childbearing and paying for college.
One of the largest changes over time has been the increase in costs related to care for young children.
The report was first issued in 1960, when such costs were largely negligible, but with more working families turning to outside help with child care, it has grown to be a significant expense for many families. The report does not give total costs related to early child care.
A mother of three, Raben Andrews of St. Louis, said the government figures sounded right to her. “Well, that’s not half of it,” joked the 42-year-old public school teacher. “I still have to put the little buggers through college.”
The Real Dad Blog breakdowns the cost of one child (Hoping that this child is breastfed as a baby. Formula fed babies are even more expensive.)
- Diapers: $40 per month for about 3 years. $1440 in those three years
- Clothing: $500 per year (some people more some people less) By the age of 17, $8500 on clothing. I think that is on the cheap end!
- Medical Insurance: about $200 a month (depending on the job), $2,400, $48,000 for 17 tears,
- Food: As a kid, about $40 a week or about $21,000 to the age of ten, teenage boys about $75 a week or $27,000 for the teenage years. Those teenagers can eat!
- Celebrations: (Birthday and Christmas) About $200 a year or 3400 for 17 years. That is on the cheap end.
- Sports: Depending on the sports about another $200 a year and more when they are older. $3400 for their adolescent lifetime.
- Miscellaneous money (like going out to eat, them going out with friends, dad taking the kid out for fun): $200 a month or $48,000 a year.
- Daycare: About $150 (more as an infant and less as they age) a week for 10 years or $78000 for the whole 10 years.
These are expenses that a parent should expect. Some moms and dads do not need daycare. That is a huge savings. With all these estimated numbers added up, that is almost $240,000 being spent on just one child for their first 17 years.
I love numbers. If you take that $240,000 and break that down to each year, that is $14,100 that is spend on your child each year. If a person did not have that child and invested that money $14,100 each year and get about a 7% return on it, you would have a little more than $500,000. This would then turn into $3.8 million after 30 years if you kept it in to grow. You could be $3.8 million dollars richer!
With all these dollar signs flashing in front of you and all the cost making you go insane just remember, your child is priceless. No matter what financial situation you are in, the best you can do is to teach your child financial responsibility and have the fortitude to pull through when times are tough. Parents are the best role models a child can have. They need to see responsible parents who can handle and communicate about financial matters.
For some great parental financial advice please go to Frugal Dad. His blog has frugally sound advice. His posts can help make the $240,000 be much less. I have learned a thing or two about being frugal from life experience and Frugal Dad. Who knows, he could help make it seem like you have $3.8 million. Well, your child should make you feel richer than that!
Real Dad Blog Version: Raising a child is crazy expensive. It doesn’t matter how much it cost because raising a child is priceless.
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Crickey, I’m putting my kids up for adoption. I can visit often, especially with all that extra money. You throw in the cost of college… there goes retirement. I for sure don’t spend anywhere near 14k a year on both my kids. they’re still little though. I bet it’ll add up.