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The $369,000 Baby
Kids are bigger money losers than investing in shares of BP the day before the oil spill.
That’s the only conclusion I can draw after reading that the United States government is estimating that the cost of raising a child born in 2009 to age 17 is anywhere between $160,000 for lower income families to $222,000 for the middle class household and $369,000 for those earning $98,000 or more annually.
If your family is solidly middle class, the government says you’ll spend anywhere between $11,650 to $13,530 a year, with housing, childcare and education making up the bulk of the cost.
What’s amazing is that these numbers sound like bargain basement childrearing to me. I live in the New York region, where the sums of money the government says parents are spending yearly on their progeny won’t even cover the average annual taxes on a home in a middling school district.
Mercifully, the government provides a calculator on their website. And, lo and behold, they actually know what’s up out there. It turns out the numbers trumpeted in the press release are truly averages, taking into account the fact that it is much less expensive to raise a family in rural areas and the Midwest then the urban corridors of the Northeast and West Coast. Someone living in my neck of the woods is likely spending more than $20,000 annually per child.
I felt positively thrifty after figuring that out, so much so I splurged and treated my boys to Popsicles from the overpriced ice-cream truck that makes sure to cruise our cul-de-sac every evening just after dinner. But as I watched them slurp their desert, a horrid thought suddenly occurred to me. Children don’t go to college at age 17. The government says I am likely to spend $40,000 this year on children attending public school, and still too young to need SAT prep classes.
Sure enough, another look at the data confirmed that the government doesn’t include college costs in their child-rearing calculation. The survey is conducted by the federal Agriculture Department, so maybe they are figuring we are planning to put the boys to work on a farm after high school graduation, skipping higher-education altogether.
BP would have been a better deal. Good thing the boys looked adorable with Popsicle juice dripping from their chins.
So what about you? Go visit the calculator. Then come back and tell us what the government says you are spending on your children, and if that lines up with your bills.
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Recession Birth Rate | Strollerderby commented on Aug 30 10 at 10:24 amanon commented on Jun 16 10 at 9:56 amHmmm…I don’t know. It says 10K on housing, but we’d live in the same house whether we had a kid or not. Food and transportation, the same, how much does a preschooler eat…and she goes where we go. We SO do not spend $1000 a year on clothes for this kid and since she goes to preschool NOT daycare, we spend a fraction of the $6400 they say goes to childcare and education (however, we DO put 500 a month into her college fund)…it seems like maybe if people didn’t spend thousands on clothes their kids will grow out of, and excessive money on daycare, they might be able to save for college, and give their kids some peaceful time at home with mom or day in their early years. I wonder what the “other” $2,425 is? What the hell do people spend 40K on, if not tuition? This just confirms what my gut is telling me…something is wrong with our culture/society. today
Huh? commented on Jun 16 10 at 10:13 amYou know what, anon, you are RIGHT! I will henceforth stop spending excessively on daycare and leave my toddler at home alone.
helaineo commented on Jun 16 10 at 10:32 amHi all,
I will try to take a stab at this — since I live in an excessively expensive area of the country it actually made a sick amount of sense to me. The government is assuming (likely quite rightly) that I would not live in my house if I did not have two children. I believe the average house tax bill in my town is around $15,000. A nanny where I live is costs at least $15 an hour, and, if you work full-time, that’s likely the way you will go because day care options are quite limited. That’s at least $600 a week. Nursery school is somewhere between $5,000-$6,000 for five mornings a week. Health insurance premiums are doubled with children … and so on, and so on. I’m not saying this sort of spending is right or wrong, but it is what it is and that’s all the government is pointing out.
Lindsay commented on Jun 16 10 at 10:38 amWe also would live in the same house with or without kids, and the biggest expense for my daughter is diapers and clothes (we usually shop at second-hand shops and clearance racks). I highly doubt that we spend more than half of our yearly income on our 14-month-old. If we were, then I think we’d be doing something wrong.
PlumbLucky commented on Jun 16 10 at 10:48 amTuition for public preschool where I live (yes, I said public thank you) is right in the ballpark of $5000. That is not before or aftercare, that is preschool. We don’t qualify for tuition assistance/free tuition as we aren’t an “at risk household” nor are we low income.
The plan to have children did somewhat color where we picked our house, but not entirely. We could have lived in a cheaper ‘burb but dealt with lower property values, higher taxes, higher insurance rates, and higher crime rates.
I’m trying to think if there is any way we could spend a grand on clothes, and I doubt it. We do mostly secondhand and bargain store.
diera commented on Jun 16 10 at 10:58 amDay care for *one* child at our family’s day care costs that much. It’s the best possibly day care, but still.
MomofBeans commented on Jun 16 10 at 11:00 amDear Huh?
You rule.
Love,
Mom of Beans
Anne Michaud commented on Jun 16 10 at 11:29 amI agree that these are bargain-basement estimates. As a dual-income household, we will spend about $9,000 on summer camp for two kids this summer alone. They will go to day camp for six weeks, then overnight camp (a county 4H program) for two weeks. Both of these camps are considered “reasonable” in cost on Long Island. There are far more expensive, exclusive camps here, and we could really spend a lot more if we wanted special sports or arts programming.
Is there another way? Sure, we could hire a nanny for the summer. I have yet to find a nanny who has the energy and imagination to offer anywhere near what these camps do, in terms of fun and social life. Sad to say, I’ve employed nannies for about 5 years here, part-time, and paid the top rate. We could enroll our kids in partial day programs offered by the town — music, arts, sports. But I wouldn’t have any idea how to transport them several times a day while my husband and I are at work. Maybe a nanny + a town program = a better summer deal? But I suspect that then you’re nearing the price of camp anyway.
We are holding on for the day my older daughter qualifies to work as a counselor in training, which is a goal of hers. Even if she gets paid nearly nothing, it will be a financial improvement!
I would add that my kids love their summer camps and the friends they’ve made there, and that’s worth a lot to us too. Nobody really got into parenthood expecting it would be a bargain.
anon commented on Jun 16 10 at 11:29 amor you could not spend so much on all the crap and stay home with said toddler, thus saving daycare money…and on all the other stuff…this survey and data really illustrates the wrong emphasis on THINGS vs PEOPLE
MomofBeans commented on Jun 16 10 at 11:36 amWhat sorts of crap? Because I work so I can provide health insurance to my family.
anon commented on Jun 16 10 at 11:41 amwell, soon that won’t be tied to work, so I guess that is one good thing about healthcare reform, right?
Stephanie commented on Jun 16 10 at 11:54 am<>
I work to provide my daughter with the life I’d like to give her. Things factor in less than access to good healthcare, good schools and experiences in the world, which– yes– cost money.
And for the record– I think the estimate I got of $25k is a bit much. We’d definitely live in the same house with or without a kid and daycare only runs us $700 a month, so I’d estimate more around $15k.
AwesomeCloud's mom commented on Jun 16 10 at 1:05 pmMy child costs well below average, but, again, the absence of daycare costs makes the biggest difference. Also, we live in a very small house, have paid for our car, and get some of our clothes and toys secondhand. (Don’t worry, whatever money we’re saving with our current modest lifestyle will fly out the window when we start paying private school tuition.)
JZ commented on Jun 16 10 at 1:21 pmHoly cow! Daycare is expensive in some places. I thought it was expensive here at like $150/week for 1 kids (I stay home but know a couple people who pay for daycare). Private school that my kids go to is almost $4000 for 2 full time students. I thought that was expenisve to but I guess not. I live in a poor area I guess.
I would like to see a study on how daycare prices vary from area to area.
Oh and $1000 a year on clothing is crazy no matter where you live. LoL
diera commented on Jun 16 10 at 1:38 pmI agree about the clothes. Although we’re buying our area’s top-of-the-line day care, I doubt our family spends more than $1000 a year for clothes for ALL FOUR of us. I’m willing to pay top dollar for a wonderful, loving day care that has extremely low turnover and teachers with degrees in early childhood education, but not for new clothes from Gymboree or Nordstrom’s or wherever $1000 worth of clothes for a child comes from.
Of course, I could stay home, but although that would save me about $15,000 dollars a year or so (yikes, that’s kind of scary when you add it all up) it would still be a net financial loss for our family, not to mention the loss of security it would entail. Whether or not that would be worth it is a judgement call that not everyone would make the way we have, but it wouldn’t leave us better off financially.
Rosana commented on Jun 16 10 at 1:38 pmI find very annoying to put a price on my kids. I will be spending that money anyways in other things that might not mean anything to me in the future. However, my kids are priceless and paying for things they need or I need to make sure they are fine is not an expense or a bad investment, like this article suggests. Besides, like anon points out. I will be paying a mortgage even if I did not have kids, I am a smart shopper for everything from clothes to groceries so I do not see the burden this article talks about.
MsC commented on Jun 16 10 at 1:44 pmThis data is from 2007, so a bit out of date perhaps:
http://www.usatoday.com/news/nation/2007-06-20-day-care-table_N.htmWe also pay about $150/wk. I think that’s somewhere on the low-to-average end of the scale. My sister lives in a bigger city in a slightly richer state and pays $200/wk.
In this city for people with kids it really can make a difference in the house you pick. For people who can afford this kind of choice to begin with, it can be a bit of a balance between paying more for a house where the public school isn’t an utter disaster or paying less for a house and putting the difference toward private tuition.
Rosana commented on Jun 16 10 at 1:51 pmI am with you there Huh? Leaving my kid at home alone is not an option for me either and I have been doing the math for 2 years and can’t still stay at home with my kids (as much as I wish I could) It is not about buying crap (since we don’t) is about every family’s situation and nobody knows the exact circumstances of every houselhold. If you can stay home with your kids, consider yourself lucky but do not assume you know everything about other families’ circumstances.
Amy commented on Jun 16 10 at 2:01 pmWOW!! Reading this puts things in a little different perspective and I am going to get a little off subject here. I work, my hubby stays home with baby. He has a son from a previous relationship that I am paying the child support for (cheaper than day care and much more safe). The courts now want to take away his drivers license because he DOESN’T HAVE A JOB? Excuse me?? Since when is taking care of, teaching etc. . a 2 1/2 year old not a job? How is him getting a different job and us paying someone to raise our daughter going to make a difference in child support court? His son is already getting child support, weekend visits, summer living arrangements and everything else he could possibly need. (and most of what he wants – directly from us). Sorry, but had to vent while we were talking about the cost of kids.
helaineo commented on Jun 16 10 at 2:25 pmThose of you paying between $150-$200 a week in childcare — where do you live? In the Northeast corridor, that wouldn’t even get you a high school babysitter for a day.
jenny tries too hard commented on Jun 16 10 at 2:35 pmHere in TX the going rate is around $150-$200 a week per kid, bare minimum, but you can get a home-based sitter for a little cheaper. And I totally agree about clothes. I have four kids and there’s no way I spend $1,000 clothing all of them. No freaking way. Between hand-me-downs, freecycle, and resale stores I don’t spend much at all.
And anon, why is it that your proof that “something is wrong with society” is that once again, people are doing things differently than you’ve chosen?
g8grl commented on Jun 16 10 at 2:39 pmAnon, it would be even more expensive to stay home since I would be giving up my entire income to do so (well over the 26K/yr. I am paying in childcare costs).
MsC commented on Jun 16 10 at 2:47 pmhelaineo, I’m in AZ. My sister is in Texas. I’m well aware that if I were in, say, Boston I would be paying considerably more.
johanna commented on Jun 16 10 at 3:48 pmYou know, anon, I was right there with you on quite a few points, but you really lost me when you equated a working parent (I’m assuming mom) with and attitude of THINGS vs. PEOPLE.
Yes, we do pay a lot for day care – a daycare that our son loves, a place where we feel very safe knowing he is at all day. Our child is happy, securely attached, and developmentally on track.
We are a very thrifty family – cloth diapering, hand me downs, paid off car, set to pay off our mortgage in five years, saving everything we can for retirement and our kiddo’s college fund. There may exist some dual income families where both parents work simply because they want more stuff, but I have yet to meet them. Our child is our top priority – nothing, no job could ever compare with him. We are working to provide him with what he needs and a steady future. Things may change and one of us may stay home, or we may move into a model of work and school that enables us to integrate his presence more. But right now, we (and I’m quite sure all working parents) are doing our very best to do right by their kids, and I think your assumption is faulty and unkind.
anon commented on Jun 16 10 at 5:06 pmmaybe you’re right…sorry to be unkind…I do have a little trouble understanding how broke EVERYONE seems to be that they NEED to pay thousands and thousands of dollars for someone else to watch their kid all day when I see a good number of folks who manage to NOT need to do that…it just strikes me as a huge disservice to children, that, with a little planning and thoughtful budgeting, could be mitigated for a few years…honestly, I think some people just don’t believe they have what it takes to be with a small child or baby all day long
Mistress_Scorpio commented on Jun 16 10 at 5:25 pmKeep feeding the troll, it will continue to pollute the discourse.
anon commented on Jun 16 10 at 5:33 pmjust because someone says something you do not like does not make them a troll…a troll comments on lots of threads just to get a rise out of people…there are plenty of threads and issues that do not interest me, therefore, I do not comment on them…I happen to feel very strongly that children under 3 do not belong in daycare and that is a legitimate part of this discussion because it seems to eat up a lot of the dollars it supposedly costs to have children…how many of these workers also pack their lunch vs getting an $8 sandwich each day, then there’s transportation to work, work clothes, etc…I know that still many would make more that the daycare costs, I myself would, but we, as a society also need to put a value on things that do not have dollars associated with them…things like a child’s feelings, their emotional well-being, their development…nobody seems to want to face that…
JZ commented on Jun 16 10 at 8:13 pmHelaino I’m in southwest MI. $150/200 a week is deffintly on the higher end. You can get in home childcare for a bit cheaper.
LindaLou commented on Jun 16 10 at 8:46 pmHmmmmm. Well, I know *I* don’t spend as much as the averages say and I live in a large, NW city. We’re very thrifty and pay cash for everything and don’t have things like car payments or credit card payments. We still live in our *starter* home which we purchased in 1993. The kids go to public school, although it’s funky, alternative public school. Being thrifty is the only way we’ve managed for me to be at home full time for the past ten years (I worked part time when my first born was small.) We do choose to spend money on activities, year round swim team, karate, music lessons and the like.
Voice of Reason commented on Jun 16 10 at 11:53 pmHi, I’m curious – what do property taxes set you back in various parts of the USA? I ask because I nearly fell off my chair when I read Helaineo’s comment that “the average house tax bill in my town is around $15,000.” Even in an excessively expensive area of the country, that strikes me as extremely high. I live in Vancouver, known for its expensive housing. A nice-but-modest three bedroom house in my neighbourhood would cost just shy of $1 million and the annual property tax bill would be under $5000.
helaineo commented on Jun 17 10 at 1:08 amHi, This is Helaine again. In the NY metropolitan region, property taxes will run someone between $10,000 (on the very low end) to $30,000 and above on the high end. When I was looking at homes, I frequently saw houses with annual property taxes in the $25,000 range. Depending on the town you live in, anywhere between 2/3 to 85% of that sum will go to fund the local schools.
anon commented on Jun 17 10 at 6:28 amthat’s CRAZY high (those taxes) we have great schools in our county and the property taxes here are around 1%, I think, is what it works out to be (450 K purchase price, 4500 bill…, right?)
Huh? commented on Jun 17 10 at 12:57 pmYou are certainly on the cusp of troll, with a jerk rising, anon. Which is disappointing, because I’m pretty sure that I agree with you on some central issues. I would love to stay home with my toddler, and the $380 (a week) that we spend on F/T childcare is not because we buy a bunch of crap. We have one paid-off car, a very small house, and don’t spend much on clothes. We don’t even *gasp* have TV because our TV is at least…10 years old and we don’t get cable. My husband and I both work pretty run-of-the-mill jobs and take our meaning and fulfillment from interpersonal relationships instead of income and status. Or maybe we’re just unambitious. Regardless, we could scrape by on his or my salary alone for a while, but any emergency would break us and when the stay at home parent was ready to go back to work…who can guarantee that work will be there? Our job is provide for our kids both emotionally and practically, and we are all doing our best, even the trolls. And by the way, the toddler loves daycare; it’s obviously a breath of fresh air from the doting parents.
anon commented on Jun 17 10 at 1:05 pmsorry, Huh?…in my neck of the words in Amurica, it’s more like what I describe…sounds like you’re doing the best you can…it’s not for me to judge you and I’m not judging individuals for their choices, the way I suppose I should try to frame it is more of a judgment on society in general, that has gotten us to this point where there are people such as yourself who want to stay home but can’t…
Freeforall commented on Jun 17 10 at 3:28 pmRead “Home Alone America” and see if the dual income is REALLY worth it!!!
anon commented on Jun 17 10 at 5:32 pm“Ships Without A Shore” is a good one, too…
MomofBeans commented on Jun 17 10 at 6:08 pmOk, we get it. Our kids are being screwed up bc we work. But that doesn’t change the fact that my severely asthmatic and allergy-ridden toddler requires medical treatment that can be quite costly. And before you search for something else to criticize, yes, I did breastfeed (for close to 2 years).
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