Costs of Raising a Child

Costs of Raising a Child

Your quarter of a million child Children are priceless, but raising them is probably the most expensive thing you'll ever do. Here are some breakdowns on where the expenses may be.

Raising Costs of a Newborn The costs in the child's first year continue to add up. The amounts spent vary depending on whether one looks at a single parent, or two parent home, whether there is more than one child in the home, and what the income range of the family is.

In the first year alone, you can easily spend between 4,000- 6,000 for diapers, formula, baby furniture, clothing, baby gear, etc. If you go back to work right away, childcare can cost as much as 3,000- 4,500 in your baby’s first year.

Diapers If you plan to use disposable diapers, plan on spending between 2,000- 3,300 by the time your baby is pottytrained. Expect your baby to go through at least 7-8 diapers a day on average and spending 80- 130 a month on diapers alone (especially in the first few months, when changes are more frequent.) Cloth diapering can be just as expensive as disposables if you use a diaper service. If you launder them yourself, you can save money. It is estimated that cloth diapering costs approximately 800- 1,100 by the time your baby is potty-trained (without the diaper service.)

Age Diapers Changed Per Day # of Diapers Per Month 0 – 1 month 10 – 12 320 1 – 5 months 8 – 10 240 5 – 9 months 8 240 9 – 12 months 8 240

Baby Bottles Formula (up until your baby is one-year-old), will most likely cost between 1,000- 2,300. Plan to spend at least 40 a week on infant formula. Babies eat every 2 – 3 hours in the first couple months. You can cut your costs dramatically by breastfeeding for a year or more.

Baby Arrival Average bill for doctors’ fees and hospital charges - 9,700 For C-Section - 12,500 Complications – up to 300,000 If you are covered by insurance, it may cover most of the cost.

New Baby “Stuff” Baby Furniture/Bedding Stroller Car Seat High Chair Diaper Bag Baby Monitors 400 100 100 75 50 50

According to a 2010 USDA report, the average middle-income family will spend roughly 12,000 on child-related expenses in their baby’s first year These amounts break down as follows:

Costs for 1 year of child’s life Housing Food Transportation Clothing Healthcare Childcare/education Miscellaneous 2770- 5960 1000- 1590 880- 1830 350- 540 550- 830 1080- 2690 670- 1750

Housing This is the biggest single expense of raising children, comprising anywhere from 33% to 37% of the overall annual expense. Utility bills typically double when a baby joins the family

Food 940- 1500 2004 USDA Monthly Food Plans Family of 4: Thrifty – Liberal 421.70 804.70 4.00- 8.00 per day per family person

Childcare/Education 12,108 Day care: 1,009 per month Public/Private Education Educational Toys and Books Educational Lessons (piano, sports) Piano 50 a month x 12 600 Sports Camp 1,000

Transportation 800- 1670 These costs are about 13% of your budget: Car Gasoline Insurance Stroller - 50- 200 Trike 50- 100 Car Seat 100- 200 Bike 100- 200

Clothing 420- 640 7% of your budget or about 44 a month Relatives become a main clothing provider This cost has decreased over last 5 years

Healthcare 550- 830 Doctor Dental Illness Accidents Disability Co-Pays for Dr. Visits - 15 Co-Pays for ER Visits - 150

Miscellaneous 700- 1700 Plan on about 50 a month of Unexpected costs. Toys/Books/Computers Sports Equipment Personal care items/Hair care Entertainment

Over the child's first 18 years of age, the cost is currently estimated to add up to 245,340.

College Costs If the child goes to college, the costs continue to mount. Currently the costs are estimated to range from 4,000 to 80,000 over four years. Public university tuition/fees 7,000 - 11,000 a year Private university tuition/fees 31,000 - 44,000 a year Public university rood/board 6,872 a year Private university room/board 5,565 a year

The total of all these costs by the time a child graduates from college add up to.A lot! That's why any expecting parents should begin budgeting and saving today!

But 200,000 isn't so bad if you break it down. It translates into 16,222 a year, 1,352 a month, or 318.46 a week. That's a mere 49.45 a day! Just a little over 2 dollars an hour. You even get to choose the name of your child!

Factors Affecting Costs Two Parent Family Single Parent Family Divorce

Parenting Cost Difference The cost of raising a child in a single parent home are higher. Reasons: 2 homes Added transportation/ additional child care for working parent.

Additional Cost Factors Number of siblings Urban/Rural family Health care Income bracket (low/middle/upper) -upper income families will spend 2 x the amount that a low income family will spend per child.

Ultimately, of course, nobody decides for or against having a baby based purely on dollars and cents. But monetary issues do play a role.

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