The Quarter Million Dollar Baby
There’s an interesting article over on MSN Money about the cost of raising a child. According to the most recent data from the USDA, a family making $70,200 per year will spend an eye-popping $269,520 to raise a child from birth through age 17. The numbers are a bit lower for lower income brackets, but it’s still not cheap – e.g., in the $41,700-$70,200 bracket the cost is projected to be $184,320. Families making less than that are projected to spend $134,370 over the same timeframe. Not surprisingly, they get more expensive as they get older, topping out in the 15-17 year old age bracket.
One small piece of good news is that the numbers outlined in the article include things like major expenditures on private school education by some of the families. Thus, if your kids go to public school, you can expect to make out considerably better than the ‘average’ family. However, the survey also didn’t factor in lost earning potential due to one parent staying home, or perhaps taking a lower paying job to get more flexible hours. Also note that the reported number do not include the college years.
The USDA report also breaks down the expenditures into categories. The single biggest expense is housing. Other categories covered in the article include food, transportation, clothing, health care, child care/education, as well as other miscellaneous expenses. The article runs through each of these in turn, complete with tips on how to cut costs in each area.
As the father of four (!) young kids, these sorts of numbers really hit home. But, to paraphrase the MasterCard commericals, the experience of raising my kids is priceless.
Published on May 5th, 2005 - 3 Comments
Filed under: Miscellany
email this article
- bookmark it
About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!
Related articles...
» 1,000,000 Visitors…» Late Payments on the Rise
» From the Archives (May 4th – May 31st)
» How Much Does a Million Dollars Weigh?
» Highest Paid Dead Celebrities
» Highest Paid Celebrities Under Age 25
» How Much Does a Million Dollars Weigh? (Revisited)
» 3rd Quarter 2007 Estimated Taxes Due
Was this article useful? Please sign up to receive our content via e-mail:
Great deals...
Readers’ choice...
Recent articles...
- Effect of Foreclosure, Short Sale, and Bankruptcy on Your Credit Score
- DIY Garage Kayak Racks: Fast, Frugal, and Effective
- Lending Club $25 Bonus Reminder
- Coupons are a Waste?
- How to Save Money on Pet Care
- Best HSA Custodian?
- Considering a High Deductible Health Plan
- Pay Back the Homebuyer Tax Credit?
- How to Find a Good Deal
- How Much Does Your Debt Cost?
Recent comments...
- Gwen: Being a real estate broker certified to handle distressed properties I can tell you...
- Bruce: We offer a free Paypal calculator that works in reverse with your margin or...
- Valerie V.: Good information. A short sale vs. foreclosure involves more than just the credit...
- Jennifer: Hi, I used ”Credit Solution” to settle my debt and avoid bankruptcy. They managed...
- Merry: I have two questions. I have been making an extra regular mortgage payment in...
- iris bobi: I went to contract 4-2009 and going to close on my house either December...
- Tim Rosen: Pros and Cons: Pros: a.) A systematic discipline to save/invest on a regular basis, for a...
- Matt Jabs: @Tim: Thanks, I hope this article helps get even one person on the...
Most talked about...
- Dave Ramsey is Bad at Math
- $8,000 Homebuyer Tax Credit
- Dish Network Customer Service SUCKS
- How to Claim the First-Time Homebuyer Tax Credit
- $15,000 Homebuyer Tax Credit
- Reduced Credit Limits? Share Your Experience
- Would the "Fair Tax" Gut the Economy?
- Tax Stimulus Rebate Payments to Start Early
- Pay Off Mortgage Early? Or Invest?
- The Best Online Savings Accounts (Updated!)
- Life's Too Short to Drink Cheap Beer
- $7500 First Time Homebuyer Tax Credit
Stumble It!
Digg It!
Tip It!
del.ico.us
Facebook
A good financial rule of thumb is “limit the number of beings in your household that eat”.
We all certainly make an exception for children for obvious reasons, but consider the costs of a dog, cat or other living, eating being over the course of their lives. Those expenses can really add up too!
Comment by FMF — May 6th 2005 @ 6:38 amYeah, no pets here (thankfully), so that definitely helps!
So, what you’re saying is tell teenagers no? Great post. Very informative. I didn’t know about the differences in age bracket and economic bracket. Nice job.
Comment by The Complimenting Commenter — May 6th 2005 @ 4:05 pm