As Father's Day has come and gone here's some financial news
to make one think twice about being a dad. Dad can expect to raise a
child for 17 years or more but at an average cost of $234,000 to do it.
I'm sure I spend much more than that on Jane. A government report
found that a middle income family with a child born last year will spend
about that much in child related expenses from birth through age 17.
The estimate also includes the cost of transportation, child care,
education, food, clothing, health care and miscellaneous expenses.
Interestingly, the cost of child care for young children which ws tiny
50 years ago, is now the second largest expense as more moms work
outside the home and have to pay for others to tend to little Johnny and
Susie.
The $234,000 per year average is for middle income parents. Lower income parents have a much lower cost average at about $169,080 for each child up to age 17 and higher income parents spend on average $389,670. The cost at all levels is based on income levels, the area of the country in which the child and parents live, family size and things such as welfare payments to the lower income levels that pay for the child's expenses rather than the parents themselves. The number of children people have declines as income rises, everywhere, because the opportunity cost is higher when income is higher. When a couple has more money they have more choices and opportunities that are curtailed for children or they just get a dog. As much as I love kids, dogs don't ask for $500 prom dresses...
Also, the cost per child decreases as a family has more children. The report found that families with three or more children spend 22 percent less per child than those with two children. The savings result from hand-me-down clothes and toys, shared bedrooms and buying food in larger quantities. It's not recommended though that Sally's dresses be handed down to and worn by little Fred.
Hmmmm Maybe we parents should cut the child expense budget like those politicians always promise to do for us before the election. From my own perspective being a parent and spending whatever it takes for a little one is worth every penny. That new car or TV wears out, but one's child never stops driving you crazy and, thus, is "priceless".
The $234,000 per year average is for middle income parents. Lower income parents have a much lower cost average at about $169,080 for each child up to age 17 and higher income parents spend on average $389,670. The cost at all levels is based on income levels, the area of the country in which the child and parents live, family size and things such as welfare payments to the lower income levels that pay for the child's expenses rather than the parents themselves. The number of children people have declines as income rises, everywhere, because the opportunity cost is higher when income is higher. When a couple has more money they have more choices and opportunities that are curtailed for children or they just get a dog. As much as I love kids, dogs don't ask for $500 prom dresses...
Also, the cost per child decreases as a family has more children. The report found that families with three or more children spend 22 percent less per child than those with two children. The savings result from hand-me-down clothes and toys, shared bedrooms and buying food in larger quantities. It's not recommended though that Sally's dresses be handed down to and worn by little Fred.
Hmmmm Maybe we parents should cut the child expense budget like those politicians always promise to do for us before the election. From my own perspective being a parent and spending whatever it takes for a little one is worth every penny. That new car or TV wears out, but one's child never stops driving you crazy and, thus, is "priceless".
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