How Much Do Kids Cost? The Change from 1960 to Today May Surprise You

05 Sep 2012

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Growing Fast: The Skyrocketing Cost of Raising a Child

Kyle Psaty 2 Comments

Growing Fast Skyrocketing Cost Raising Child

How much do kids cost? It’s a question we often try to ignore. While parenthood easily the most rewarding way to spend money, make no mistake: Kids cost a lot.

In fact, each child you raise will now cost you more than a 2012 Lamborghini.

But the relative cost of kids isn’t just high, it’s getting higher according to research by the U.S. Department of Agriculture.

In the last year alone, the cost of raising a child to the age of 18 jumped by 3.5%. That’s not including the cost of a college education.

Since 1960, the cost to raise a kid has skyrocketed a whopping 28%, after adjusting for inflation. Kids cost more to raise now than ever before.

So How Much Do Kids Cost?

The answer, according to the most recent USDA report is $234,900. To help you understand how to unpack that number, here’s an infographic we stumbled upon at VisualEconomics.com. Thinking of having your first child soon? Check out our baby cost calculator to get a handle on your startup costs.

If you have kids, how much do you think you’ll spend raising them? How much cheaper was the second? What tips do you have for cutting costs? Share below.

Kyle Psaty 2 Comments

http://www.facebook.com/mkrugmuro Melissa Krug

Every time I read one of these reports, it upsets me. There are so many ways to raise children, the numbers are just meaningless. We have raised four boys on one income over the past 20 years. I breastfed, used cloth diapers, and clothed my children with hand-me-downs and yard sales finds when they were little. We took very modest vacations to visit relatives. We survived with one car. We bought everything we could used-clothing, baby gear, toys, sports equipment, games, movies. We spent out free time at the library, parks, and the beach. We ate homecooked food. We traded for things we couldn’t afford to pay cash for like music lessons. I could go on and on, but the point is, having children is as expensive as you choose to make it. You don’t have to buy into all the things our society says you must have/do when you have children.
http://dailyperk.perkstreet.com/ PerkStreet Jen

These kinds of reports work on averages, and this is one case where it’s great to be below average! There are some things that are going to be unavoidable, but the costs can be minimized or offset like you mentioned. I helped our team here build our baby cost calculator mentioned in the post, and making sure there were lots of variables was important to me, so parents could see how lowering diaper costs, for instance, could give them a big boost elsewhere.

A report came out last week that listed MA as the most expensive state for childcare for children under 4 – yeah, you’re telling me! But we knew that would be an unavoidable cost for us, and shifted our budget to match our priorities. I wouldn’t call having a baby particularly “affordable” but it’s been a lot less expensive than I would have thought.

The Author

So How Much Do Kids Cost?

If you have kids, how much do you think you’ll spend raising them? How much cheaper was the second? What tips do you have for cutting costs? Share below.

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