US government: pricetag to raise a child -- $221,190

[mawilson 2,133]

WASHINGTON (Reuters) - A middle-income family can expect to spend $291,570 including

inflation to raise a child born in 2008 to adulthood, the government estimated on Tuesday,

up slightly from the estimate made a year ago. The estimate covers food, shelter and other

necessities for a child to age 18, said the annual report by the Agriculture Department.

The figure does not include the cost of childbirth or college.

Housing accounts for one-third of expenditures on children. Food accounts for 16 percent,

the same as child care and education, said the Expenditures on Children by Families report.

Last year, the USDA estimated it would cost $269,040 to raise a child born in 2007 to age 18,

including inflation. The USDA has made the estimates since 1960, when the estimated cost

was $25,300. The department said it planned to have an updated "Cost of Raising a Child

Calculator" on the Internet soon.

Annual spending for child-rearing ranges from $11,610 to $13,480 for a middle-income,

two-parent family, the USDA said. Families with lower incomes will spend less and families

with higher incomes spend more. Expenses are highest in cities in the U.S. Northeast,

followed by urban areas of the West and Midwest. They are lowest in rural America and

cities in the South.

link

[Peikko 1,575]

How do they add in housing costs? Are they suggesting that most middle income families would live in smaller homes if they didn't have children? That's a strange assumption to make.

Food, education, estimated baby sitting/child care costs fair enough, but housing?

[mawilson 2,133]

How do they add in housing costs? Are they suggesting that most middle income families would live in smaller homes if they didn't have children? That's a strange assumption to make.

Food, education, estimated baby sitting/child care costs fair enough, but housing?

I think that's it - as families grow, they move into bigger homes.

[Peikko 1,575]

Middle income families? I thought they liked big homes no matter what? The home is the status symbol, not the kids, no?

[alienlovechild 75]

Families with lower incomes will spend less and families

with higher incomes spend more.

It's amazing how poor families manage to get enough money courtesy of Uncle Sam, state and local governments. In some elementary schools around here 90% of the kids' families get some form of government assistance.

Edited August 4, 2009 by alienlovechild

[Emancipation 2]

is 18 what they are considering "adult"... then that makes it over $16000 a child per year..

[one...two...tree 2,762]

I wonder how much disposable income is spent on average by childless couples over that same number of years?

[one...two...tree 2,762]

Germany Plays With Procreation's Price Point

Days after The Lede's look at declining birth rates in countries around the world, from Asia to the United States to Europe, The Financial Times is reporting some contrarian news on fertility from Düsseldorf, Germany:

In the first quarter of 2007, nearly 15 percent more babies were born in Düsseldorf than in the same period last year. The Kaiserwerther Diakonie, one of the city's three large hospitals, reported a rise in births of more than 16 percent in the first half of the year.

While noting that it is too early to declare a trend, The F.T. nonetheless lists some possible explanations for what a German newspaper is calling "a new baby boom." Along with a stronger local economy that is attracting young couples, a policy known as Elterngeld is held up.

The Elterngeld program now offers subsidies of as much as 25,200 euros ($34,700) a year to mothers who bear children in the year 2007 and beyond. Before this year, the subsidy was set at 7,200 euros ($10,000), leading to reports that mothers were delaying labor in December 2006, hoping to qualify for the extra cash by giving birth in the new year.

Germany's policy was inspired by its Scandinavian neighbors, who offer even more munificent benefits to new mothers. They also enjoy stronger birth rates. A BBC graphic outlines Europe's various offers.

The possible success of the higher payment in Germany and elsewhere in Europe prompts a question of procreation's price point. How much would it take to induce you to have a baby? And can your government afford to fuel a new baby boom while taking care of the original baby boomers?

http://thelede.blogs.nytimes.com/2007/07/1...ns-price-point/

Edited August 4, 2009 by Col. 'Bat' Guano

[alienlovechild 75]

The Elterngeld program now offers subsidies of as much as 25,200 euros ($34,700) a year to mothers who bear children in the year 2007 and beyond.

My wife's sister got some money from being married to a German guy. It's like a gameshow- Procreate for Euros!

I wonder how much disposable income is spent on average by childless couples over that same number of years?

Cats and dogs can't be expected to live like animals in America. Let's not forget those great vacations to whereever those people go.

That's interesting thread- If you don't have kids, what do you do with the extra money?

[one...two...tree 2,762]

I wonder how much disposable income is spent on average by childless couples over that same number of years?

Cats and dogs can't be expected to live like animals in America. Let's not forget those great vacations to whereever those people go.

That's interesting thread- If you don't have kids, what do you do with the extra money?

We could find some interesting numbers. Just in terms of how much the average pet owner spends during the lifetime of their pet(s). Or how much the average family spends on cars over 18 years? I think total per child sounds high but compared to what...it's really all relative.

[NickD 202]

You don't have to pay taxes on about $50,000 of that per kid, after FICA is deducted of course. That is only one bright side of the story, other is, if you get robbed, thieve will find your wallet empty, kids take care of that. Negative side of the story, it doesn't stop after they become adults.

[_Simpson_ 250]

The gov. obiviously knows nothing about a welfare Christmas.

[Jenn! 918]

That's actually not as bad as I would have thought. I've heard estiamtes of $1,000,000 before, don't remember where. Maybe that was including college.

Also, I imagine that the regional variation is pretty high as they mentioned - considering I know it will cost us over $20K for daycare in the first year in this area.

Edited August 4, 2009 by Jenn!

[dalegg 143]

shoot I made out selling mine for $50,000 then.

[Empress of Groovy 373]

That's actually not as bad as I would have thought. I've heard estiamtes of $1,000,000 before, don't remember where. Maybe that was including college.

Also, I imagine that the regional variation is pretty high as they mentioned - considering I know it will cost us over $20K for daycare in the first year in this area.

Yikes--the cost is crazy in the Boston area. My stepsister had a baby in April and will be going back to work (teacher) in September. She said M-F daycare in Tewksbury would be something like $1700/mo. And not for some fancypants place, either.