1. Costs of Raising a Child

2. 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.

3. 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.

4. 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.

5. Diapers
If you plan to use disposable diapers, plan on spending between $2,000-$3,300 by the time your baby is potty-trained.
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.)

6. Diapers Changed Per Day
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
9 – 12 months

7. 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.

8. 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.

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

10. 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:

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

12. 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

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

14. 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

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

16. 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

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

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

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

20. College Costs Public university tuition/fees $7,000 - $11,000 a year
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

21. 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!

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

23. Factors Affecting Costs
Two Parent Family
Single Parent Family
Divorce

24. 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.

25. 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.

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