Looking to have a baby? You can expect to pay about $234,900 in the next 17 years, before you even consider college expenses.
The new statistic comes from a government report issued on Thursday and shows that new parents can expect to spend at least a quarter of a million dollars raising a child, according to Yahoo News.
The amount families spend on their children also depends on their income group, so someone in the lowest group can expect about $212,370, whereas highest earners can expect to pay about $490,830 over 17 years, making the $234,900 middle-class families can expect seem cheap.
ABC News reports that there are a few reasons for the increased cost, including health care, which has doubled in constant dollars since 19960. Childcare and education have also gone from 2 percent to 18 percent of the whole cost of raising a child. Housing costs stayed about the same, taking up 30 percent.
While the report does not cover college expenses, ABC News reports that an estimate by 529s.com shows the cost of a private college education could reach $420,000 in 18 years, with a public education costing $195,000 for in-state students, if costs continue to rise.
Yahoo News reports that Melissa Hutsell, 40, who lives in Little Rock, Arkansas, is the mother of six boys, ages 3 to 15. The economic side of parenting is tough for her family, who has a combined household income of $50,000. Hutsell stated that her family relies on lots of hand-me-down clothing, tight budgeting, and home schooling. She further stated:
“We definitely live on less than our family could use. Groceries have skyrocketed. The thing that takes the biggest chunk is groceries. If you don’t have a lot of money but you have a lot of kids, you have to figure out how to spread it further and thinner.”
Do you think that the cost of raising kids is getting out of control?