Have you ever calculated the real cost of having kids?
On a purely economic basis, having kids makes little sense.
In fact, in our non-agrarian society, they provide almost no payback, particularly when you consider that student debt and high housing costs often force them to live at home well into their 29s and 30s.
We do know that costs vary by household income (the more money you have, the more you spend on a child) and that the second one doesn't cost as much as the first.
But what's the target number for the average family?
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A middle-income family can expect to spend roughly $240,000 to raise a child to adulthood, according the United States Department of Agriculture (USDA). The Canadian numbers seem to be a bit lower here though since Americans shoulder more direct health care costs than we do.
Still doesn't sound right when you look at your own budget? Here's an easy-to-use tool to see how things might work in your particular circumstances.
Although it may seem like babies have the most upfront costs, that period is one of the periods parents spend the least on their child, reports Nation Public Radio.
"Teenagers are the most expensive," says Dr. Mark Lino, the author of the USDA report. "They have high transportation costs; these are the years they start to drive, so you add them onto your auto insurance or buy them a second automobile. They also have high food costs, they need more food."
How do your numbers compare? Or do you even try to tally family costs this way?
By Gordon Powers, MSN Money
Photo credit: Jim O'Connor
Posted by: Mr. Negative | Aug 27, 2021 11:10:05 AM
Sometimes i laugh at us humans. If we were like any other animal - it wouldn't cost a cent! You would train your kid to eat and hunt.
Where did we go wrong? From living a life of simply eating, relaxing and having fun with families and friends - we have created a financial system which dictates how we all live our lives.
I guess we humans also need a food chain - the more money you have - the more powerful you are.
Anyhow, it is very depressing to think about!
Posted by: Steve | Aug 27, 2021 11:47:22 AM
This is a bit premature to be doing these calculations.
Come back to us after CPP and every company and private pension has gone bust. You might find that at that point the money invested in the next generation isn't all wasted
.
(Unless you either didn't have children, or treated your children poorly).
Posted by: Patrick | Aug 29, 2021 9:43:32 AM
Frankly this is completely cultural. We raise families that do not value family. What will you do when you are too old to look after yourself? I am where I am today because my parents assisted me a great deal. The least I could do is try my best for the next generation. I will let them know that money is not the most important thing in life. Hey Mr. Money Man, if you help your kids and they become a successfull lawyer, doctor, or research scientist, society as well as your family are much better off. A child has the potential to accomplish a great many things. Canadian culture could learn a great deal from eastern culture by putting family first.
Posted by: Frank | Sep 3, 2021 9:51:58 PM
So Dr. Lino says it costs $240K to raise a child. Personally the idea of putting a price tag on your children is ridiculous. What does it cost if you don't raise your children? We've certainly seen the social impact of child negect. These academics seem to be from outer space sometime.
Posted by: weavel | Sep 3, 2021 11:21:58 PM
The boomers will pay for there grand kids in today's world, their the only ones who stood to benefit from a virtual free home 30 years ago and have reaped the benefit of time. That's if they stayed out of divorce court. Then their children will inherit the remainder and go on to live a life without the need to learn how to earn an honest living and place exuberant demands on an already taxed society.