Raising Kids Ain't Cheap

by Michele Cheplic | More from this Blogger

13 Aug 2009 10:55 PM

Whether you are a parent or not, you probably know that raising a child costs a fortune. And by fortune I don't mean the amount of money it would take to book a private jet and tour the world on a luxurious holiday. I'm talking about the amount of cash that would allow you to purchase a very nice house in a very nice neighborhood and still allow you to drive an extremely nice car... or two.

A new report out claims the cost of raising a child from birth until he graduates from college is between $397,670 and $1,239,649.22, before taxes, depending on the college he attends.

Frankly, I'm surprised the number is that low considering that a mother starts spending money on her child well before giving birth. Heck, I dropped nearly $20 on the home pregnancy test I took shortly after conceiving my daughter. My prenatal vitamins weren't cheap either nor were my maternity clothes or the medical bills that covered the care I received to insure my child would be born as healthy as possible.

According to the report, once your child is born your bank account is depleted trying to keep Junior fed, groomed, clothed, educated and entertained to the tune of nearly half million dollars, provided you aren't paying for him to attend an Ivy League college. If that happens then you'll likely be out more than a million dollars before your kid celebrates his 22nd birthday.

The numbers are slightly lower if you don't factor in college. According to the U.S. Department of Agriculture, the cost of raising a child from birth to age 17 is roughly $300,000, though the number varies according to a family's income. For example, in two-parent households with a before-tax income of less than $45,800, parents spent an average of $148,300 on their children from birth to age 17. Parents with income between $45,800 and $77,100 averaged a total of $204,060 on their offspring, and those earning more than $77,100 spent about $298,680 per child.

Two hundred thousand plus dollars may not seem like a huge price to pay considering how much joy a child brings to a family. However, if that same amount of money were invested in a traditional IRA at a rate of 7 percent, deposited in equal increments over 22 years--the same amount of time it takes Junior to reach his college graduation--you would end up with $964,236.93, before taxes.

Was money a factor in deciding how many kids you would have?

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Learn more about Michele Cheplic

Michele Cheplic was born and raised in Hilo, Hawaii, but now lives in Wisconsin. Michele graduated from the University of Wisconsin-Madison with a degree in Journalism.

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Samual (11722) 14 Aug 2009 01:24 PM

Obviously in the UK medical bills don't exist, university is £3,145 a year here as well, but as far as I understand it can be extremely expensive in the US.

Money was an issue for us as we needed to afford a bigger house and live on one income. Baby stuff for Mikey that lasted until he was two cost us £500ish, then we used it on Jamie and Pippa she looks pretty cool dressed as a boy!

We have never bothered with kiddie furniture, it wont last very long and most of it is badly made. We aren't tight, if we need something we'll get the best, but there are somethings I think are really pointless like mechanical bouncing chairs so you don't even have to bounce your own baby!

Michele Cheplic (37429) 15 Aug 2009 03:27 PM

Maybe I should move to the UK. Seems like the living is better there... at least I feel that way when I read your comments Samual. I bet Pippa looks cute in anything you put her in. Also, I agree that some kiddie items are a ploy to bankrupt parents that can't say no.