Yup. Raising kids isn’t cheap. If you had a kid this year, your little bundle of joy will cost almost a quarter of a million dollars to raise until the age of 17.
This number came out of the U.S. government’s Department of Agriculture. They’ve been keeping tabs on this since 1960 when the cost of raising a kid was $25,000.
What is included in these annual costs? In 2011, housing accounted for 30 to 32%. Child care and food accounted for another 16 to 18%.
The cost varies considerably based on household income. On average, if you have a household income of $59,410 to $102,870, you will spend between $12,290 and $14,320 a year on your child (depending on the child’s age). You’ll spend about $4,000 less if you’re below $59K and another 10 grand if you’re above $102K.
So much for having extra cash for things like vacations, clothes or a car. Good-bye new computer and so-long house renovations. But compared to the joys of having kids, these things don’t seem to matter as much anymore.
But don’t worry if you have a lot of kids. You’re actually saving money! Siblings share stuff and parents can buy in bulk. So parents with more than three children will save 22% on each kid than parents with only one or two children.
Looking for ways to save money other than having 10 children? Check out our “Saving with Sandra” blog for great family finance tips!