costs of raising a child. your quarter of a million child… children are priceless, but raising...
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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.
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
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 - $9,700For C-Section - $12,500Complications – up to $300,000
If you are covered by insurance, it may cover most of the cost.
New Baby “Stuff”• Baby Furniture/Bedding $400• Stroller $100• Car Seat $100• High Chair $75• Diaper Bag $50• Baby Monitors $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 $2770-$5960Food $1000-$1590Transportation $880-$1830Clothing $350-$540Healthcare $550-$830Childcare/education $1080-$2690Miscellaneous $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
2004 USDA Monthly Food PlansFamily of 4: Thrifty – Liberal $421.70 - $804.70
$4.00-$8.00 per day per family person
Food $940-$1500
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 Car Seat $100-$200• Trike $50-$100 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-$1700Plan 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.
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 yearPrivate university tuition/fees $31,000 - $44,000 a yearPublic university rood/board $6,872 a yearPrivate university room/board $5,565 a year
College Costs
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 siblingsUrban/Rural familyHealth careIncome 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.
Class Activities
• Needs and Wants
• Baby Gear
• Baby Bingo
• Memory Game
• The Price is Right
• Baby Pacifier