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Costs of Raising a Child
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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.
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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.
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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.
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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.) Diapers
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AgeDiapers Changed Per Day # of Diapers Per Month 0 – 1 month10 – 12320 1 – 5 months8 – 10240 5 – 9 months8240 9 – 12 months8240
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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.
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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.
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New Baby “Stuff” Baby Furniture/Bedding $400 Stroller $100 Car Seat $100 High Chair $75 Diaper Bag $50 Baby Monitors $50
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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:
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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
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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
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2004 USDA Monthly Food Plans Family of 4: Thrifty – Liberal $421.70 - $804.70 $4.00-$8.00 per day per family person Food $940-$1500
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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
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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
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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
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Healthcare $550-$830 Doctor Dental Illness Accidents Disability Co-Pays for Dr. Visits - $15 Co-Pays for ER Visits - $150
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Miscellaneous $700-$1700 Plan on about $50 a month of Unexpected costs. Toys/Books/Computers Sports Equipment Personal care items/Hair care Entertainment
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Over the child's first 18 years of age, the cost is currently estimated to add up to $245,340.
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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 College Costs
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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!
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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!
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Factors Affecting Costs Two Parent Family Single Parent Family Divorce
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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.
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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.
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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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Class Activities Needs and Wants Baby Gear Baby Bingo Memory Game The Price is Right Baby Pacifier
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