2. The Costs of Raising a Child

3. Your class estimates for raising a child for a year Total $17, 682 Is that too high or too low? There are also things like housing, daycare, etc. that we didn’t consider.

4. Let’s consider a minimum wage job. Working full time you would earn about $15, 080 Would that be enough to raise a child?

5. $42, 000-$54, 000

6. Statistics for income vs education website http://en.wikipedia.org/wiki/Household_income_in _the_United_Stateshttp://en.wikipedia.org/wiki/Household_income_in _the_United_States (Scroll to education vs income)

7. Children are priceless, but raising them is probably the most expensive thing you'll ever do. Here are some breakdowns on the expenses for raising a child.

8. Raising Costs of a Newborn The costs in the child's first year continues 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.

9. 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.

10. 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.)

11. 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. You can cut your costs dramatically by breastfeeding for a year or more.

12. Baby Arrival Don’t forget about the delivery! It easily costs between $5,000-$12,000 for a normal delivery, up to $15,000 for a cesarean delivery, and much more if there are complications. If you are covered by insurance, it may cover most of the cost.

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

14. The 2011 U.S. federal government statistics show the amount spent on a child in the first year varies from $7,300 to $15,190. These amounts break down as follows:

15. 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

16. Housing This is the biggest single expense of raising children, comprising anywhere from 33% to 37% of the overall annual expense. Plan on a minimum of $200 a month per child. Each child takes an additional 100 square feet of housing space.

17. Food $1000-$2300 2010 USDA Monthly Food Plans Family of 4: Thrifty – Liberal $509.10 - $1159.40 $8.00-$19.00 per day per family person

18. Childcare/Education $840-$5100 Day care: $330 + a month Public/Private Education Educational Toys and Books Educational Lessons (piano, sports) (For Example: Piano $50 a month x 12=$600 Sports Camp $1,000)

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

20. 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

21. Healthcare $550-$830 Doctor Dental Illness Accidents Disability

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

23. Over the child's first 17 years of age, the cost is currently estimated to add up to $170,000-$279,000. However by the time a newborn reaches age 17 in the year 2030, this total is estimated with inflation to add up to $183,000-$366,000.

24. College Costs If the child goes to college, the costs continue to mount. Currently the costs are estimated to range from $6,000 to $160,000 over four years. Public university tuition/fees $8,244 a year Private university tuition/fees $28,500 a year Public university room/board $13,203 a year Private university room/board $13,724 a year

25. 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!

26. 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.

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

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

29. 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.)

30. Plan for future costs Prepare for family emergencies Purchase adequate insurance Avoid divorce Ideas to help avoid a crisis

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

32. One mother puts it this way: “It’s not that I want to spoil my kids with possessions. But I want to be able to give them some of the things that make life enjoyable for them, like going to camp, and having birthday parties.”

33. Naming rights. First, Middle and Last. Glimpses of God every day. Giggles under the covers every night. What do you get for $250,000?

34. More love than your heart can hold. Butterfly kisses and Velcro hugs. Endless wonders over rocks, ants, clouds, and warm cookies. A hand to hold, often sticky with jelly, or peanut butter.

35. A partner for blowing bubbles, flying kites, building sandcastles, and skipping down the sidewalk in the pouring down rain. Someone to laugh yourself silly with no matter what the boss said or how your stocks performed that day.

36. For $160,140, you NEVER have to grow up. You get to finger-paint, carve pumpkins, play hide-and-seek, catch lightning bugs, and never stop believing in Santa Claus. You have an excuse to keep reading the adventures of Piglet and Pooh, watching Saturday morning cartoons, going to Disney movies and wishing on stars. For $250,000 ……….you NEVER have to grow up.

37. You get to frame rainbows, hearts and flowers under refrigerator magnets, Patch a broken heart, police a slumber party, Ground them forever and love them without limits, So one day they will, like you, love without counting the cost.

38. There's no way to put a price tag on: Having someone cry, "it’s a boy!" or shout, "It’s a girl!" then hear the baby cry and know that it is healthy. Counting all 10 fingers and toes for the first time. Feeling the warmth of fat cheeks against your breast. Cupping an entire head in the palm of your hand. Making out da-da or ma-ma from all the cooing and gurgling.

39. So, given all you get for your investment, the bottom line is: Raising kids today is the smartest and most rewarding investment you will ever make and the dividends never stop.

40. Children are Priceless Planning and awareness are critical for well adjusted healthy children.

41. And an added bonus !!!!!!

43. Points to Ponder… Parent Responsibilities Financial Responsibilities Teen Parenting Role of Father in Child Raising 76% of Teen births to unmarried mothers. Teen fathers pay less than $800 a month to child. www.childtrends.org Facts on Teen Pregnancy 50% of teen mothers have another baby within 2 years. 41% of teen mothers finish high school. 50% of teen mother begin receiving welfare. 42 per 1000 births to a teen mother – decreased over last 5 years. Monthly child costs