It’s funny how creating a kid is free, yet the upkeep is anything but. And what return do you get on the investment of financing a human being? Nothing more than frayed nerves and an empty nest to match your wallet. Seriously, we know it takes a not-so-small fortune to finance a human being, but how much does it really cost? Better yet, how much will the bottom line be through the next 18 years for a child who is born today?
Let’s look at a timeline spanning your investment’s inception to maturity (a term best applied here in the financial sense, not the behavioral, which could take decades). We’ll break it down from birth to age 5, 5 to 10, 10 to 15, and 15 to 18 with all the relative estimated costs included.
All numbers are projected for two-parent, single-child families, based largely upon U.S. Department of Agriculture statistics and adjusted for anticipated inflation. The final averages are calculated based on income brackets and regional cost of living. Many families will make do on less, some will (gulp) spend more. But bear in mind: These are best-case scenarios, assuming you enroll your child in an average daycare and public school. A child in poor health will cost substantially more. So will a kid who does his damnedest to fill his closet with skeletons, since you’ll be left with the tab for fines, bail, counseling, and rehab.
Birth to age 5
Cost: about $80,000Some of us are inclined to rock ‘n’ roll all night, while others feel the need to breed -- both can take heavy tolls. As for the latter, the life-changing event of parenthood may very well set you back 80 grand in the first five years alone. Hard to believe? Here’s how it comes together:
Housing $28,831
Food $11,882
Transportation $10,477
Clothing $4,311
Health $5,040
Care/school $10,246
Miscellaneous $8,961
Total $79,748
Amazing, but again, these figures are based on projections from the government. If ever there existed a credible source for outrageous financial reports, it’s the collection of our humble elected officials. This might be a good time to mix a stiff drink before proceeding.
Ages 5 to 10
Cost: about $79,000As your child’s education begins, you continue to get schooled. The second half of your child’s first decade will sting only a little less to the tune of about 79 big ones.
Housing $26,787 (-8%)
Food $13,244 (+11%)
Transportation $11,008 (+5%)
Clothing $4,515 (+5%)
Health $5,386 (+7%)
Care/school $8,754 (-15%)
Miscellaneous $9,277 (+4%)
Total $78,971
You were braced for expense hikes across the board, right? It doesn’t quite work that way. That’s why Ben Franklin didn’t lump these in with the surefire threats of death and taxes. For example, kids need less fussy shelter than when they are born. Same goes for care and schooling, since he or she will be in grade school and need care less often. All other costs -- especially food -- require more out of your pocket.
Ages 10 to 15
Cost: about $80,000Just when you thought we were headed on a downward spending trend, the awkward years set in -- for you and your kid. Take heart: During the pre- and early teen years, parents have been known to see flickers of light at the end of the tunnel. Better yet, only in rare cases is it the light described by near-death survivors.
Housing $26,671 (-1/2%)
Food $14,371 (+9%)
Transportation $11,314 (+3%)
Clothing $5,571 (+23%)
Health $5,477 (+2%)
School $6,820 (-22%)
Miscellaneous $9,589 (+3%)
Total $79,813
You win some, you lose some. School costs finally tip in your favor with a 22% expense drop right about the time junior discovers the art of cutting class. The threads become an even bigger priority for him and burden for you. This five-year period finds you spending 23% more on an already generous allotment.
Ages 15 to 18
Cost: about $68,000Say what? Sixty-eight large? That’s right, though this is for a shorter timeframe. Oh well, like income tax refunds, you take the little perceived victories where you can, no? During the final years of cross-examination -- when you and your wife will pose queries like “Where’s my car?” and “Do you realize we were worried sick last night?” -- here are the probable costs of caring for your former little miracle:
Housing $22,757 (-15%)
Food $12,130 (-12%)
Transportation $10,297 (-10%)
Clothing $4,418 (-24%)
Health $4,576 (-19%)
School $6,632 (-3%)
Miscellaneous $7,582 (-20%)
Total $68,392
As your child hopefully gravitates toward being more independent, his care and feeding expenses should begin to abate too. The final years before adulthood present double-digit percentage relief in nearly all expense areas, with high school expenses holding nearly steady through the last grades.
additional costs
By now, you should realize there’s always a big “but” just around the corner. You don’t need to be a rocket scientist to realize that college tuition will continue climbing, but MD credentials in your professional title could come in handy if you want to finance your child’s higher education. According to The College Board, expect an average four-year public college undergrad education to cost about $190,492. Private school? That’ll be $410,444, pal. Obviously, your burden can be offset in a variety of ways: grants, scholarships, student loans, and even the lost art of having your kid work a job or two. But unless a lottery win is involved, he or she is bound to need support to some degree.and the total is…
The grand total is almost $307,000. Now you know why your dad always hollered about leaving lights on and your mom clipped coupons. Nobody said it would be cheap or easy (cheap and easy are quite possibly two of the reasons you wound up with a child in the first place).As if it weren’t enough, you should also consider the cost of taking your kid on vacations. We didn’t factor them in since there are just too many variables across the income ranks, like destinations, accommodations, transportation, activities, and duration. Regardless, you won’t be planning time off to coincide with Dita Von Teese’s shows. The skin you’ll be seeing is of pasty parents chasing their kids while they run after amusement park mascots.
If you do want kids, save your pennies. If you don’t want kids, there’s hope. Though not specified in the USDA reports, we anticipate the cost of condoms and even vasectomies to remain considerably more reasonable than the consequences of cracking an egg.
Resources:
http://www.cnpp.usda.gov/
http://moneycentral.msn.com/content/CollegeandFamily/Raisekids/P37245.asp
http://www.babycenter.com/costofchild/
http://www.usda.gov/news/releases/2000/04/0138
www.collegeboard.com
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