I’m behind on posting so let’s talk about an email a friend sent me yesterday on how much it costs to raise a kid. Here’s what he said.
Supposedly, it cost $235K to rear a kid for 17 years, I think the numbers are off b/c I’d wager most parents don’t purchase housing/healthcare/transportation only due to having a kid.
http://www.businessinsider.com/how-much-it-costs-to-raise-a-family-in-the-us-2012-6
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I didn’t read the article before responding because I didn’t want the information to taint my initial thoughts. Here’s my email response.
$235K, is that it?!?!?!
235K / 17 years = 14K a year = 1200 / month
Don’t most people spend at least several hundred dollars a week on daycare / school / after school programs / nannies / babysitters?!?!?!? So $235K seems completely justifiable and probably for a San Francisco-dwelling parent too low of a figure. The article goes on to say that the analysis doesn’t even take into consideration inflation.
Besides how many parents cut their kids off at the age of 18? None come to mind. You’ve got to think of their college expense. Then you’ve got to account for them not getting a job after college and coming home to live with you while they cashier at Trader Joe’s. After a few years of not finding a job, they’ll opt for grad school, and who do you think will foot the bill for that? Mommy and daddy of course!
Does the $235K analysis even consider orthodontics, summer camp, language immersion, study abroad, a car, weddings?
What do you think? Is $235K an overstatement or understatement?
We do halftime day care (20 hrs per week) and it only runs us ~$750/month. Granted, it’s cheaper than some other options I looked at (and way cheaper than a nanny), and that’s Mountain View, not SF.
In general, I just think costs can really vary a lot, which is why I think looking at these “average” numbers isn’t very useful for anyone, when it comes down to it. I mean, I’m working part-time in an expensive area – does it really make sense for me to compare my costs with those of a SAHM in, I don’t know, Kentucky? or with an NYC family where both parents work full-time? I’d be much more interested if we could slice the data so that we were actually looking at situations comparable to our own.
Ah, slicing the data. I can’t believe I just said that without even thinking about it. Though I’m sure no one else is surprised.
Yes, I agree with you. It’s like, why focus on the national GMAT average when the school you want to go to has an average of 750.
I’m actually having lunch with my friend (a lawyer, mind you) who sent that article so I’ll need to ask him why he thought the average cost was so astronomical!