Family Personal Finance ? Ways Your Children Are More Expensive

Daycare contracts, food, soccer, the list gets longer and longer as children get older and now, a new study shows that the cost of kids is getting even higher. In fact, without considering college expenses, the cost of raising a child from birth to eighteen years of age has risen to an average of $226,920 in 2010.

At what point does the biological urge to have a child become economically unsustainable and if we have to find an answer to that question, in what ways have the costs of children gone up?

The Debate

The question may not be complicated but the answer certainly is. We?ve all heard of biological clocks and for many, the dream to have a child is not a force that is easily tamed. Biologists would have a scientific answer for us to ponder but what is important is that many, if not a majority of families want to have a child of their own and because of that urge, sometimes the economics are not considered.

When we purchase a home or a car, price is considered. Where we vacation, the cost of our wedding, even the lavishness of a loved one?s funeral are all planned with finances in mind. Although the financial side of being a parent is probably not completely ignored by parents, it?s not the driving force according to studies. There are reasons that costs should be moved up.

Daycare Contracts

Daycare contracts have become more complicated and more expensive. The second biggest expenditure related to your child is day care and education. 17% of the $226,920, or $39,420, is partially wrapped up in the daycare contract you sign at the beginning of each year.

Housing

The costs to put a roof over your child will cost almost $70,000 or 31% of the total amount. Housing isn?t a cost that we think about because we fail to consider that at some point, our child will want their own room.

Transportation

Think of all of the places you take your child. Football practice, ballet, a friend?s house. Now think of how many times a week they have to be somewhere at a certain time. These costs add up to $30,900 or 14% of the cost.

Clothing

Food is $36,000 of the total but how about clothing? Clothing is a very tangible expense because we can remember heading to the designer store to pay $75 on a shirt that is often only worn for a season. (They grow up so fast?) Over those 18 years, you?re going to pay $13,200 for clothes.

The Totals

Just 10 years ago the costs to raise a child were 40% lower. Equivalent to a well-paying full time job, over ten years, the cost has risen to $60,000 yet average income hasn?t risen by the same amount. In fact, not even close.

Bottom Line

We don?t want to consider the fact that having a child in this economy could be hazardous to our bank account but in light of the skyrocketing costs associated with raising a child, the costs have to become a much larger part of the conversation.

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Source: http://financialadvicezone.com/family-personal-finance-ways-your-children-are-more-expensive.html

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