The first time I clapped eyes on the hospital bill for giving birth to my daughter I nearly popped my stitches.
That’s a lot of cheddar, yo.
And that’s just the beginning. The money just keeps flying out of your pocket. Diapers, formula, daycare, education, food, clothing, extra-curricular activities, computers, cell phones, prom dresses, college… The list is endless and the numbers keep ticking up.
As Yahoo Finance reports, the cost of raising a child from birth to seventeen is soaring, leaping 25 percent over the decade.
And, according to some people there are two very specific culprits. Can you guess what’s breaking your bank?
The skyrocketing cost of raising a kid is due to the rising expense of groceries and medical care. That’s according to the Department of Agriculture, which tracks annual expenditures on children by families. Here’s how it breaks down.
The government’s most recent annual report reveals a middle-income family with a child born in 2010 can expect to spend roughly $227,000 for food, shelter and other expenses necessary to raise that child – $287,000 when you factor in projected inflation.
And, no, the bill does not include the cost of college or anything related to the pregnancy and delivery.
Nearly $300 grand? That’s more than I’m willing to spend on a home at this juncture. Yikes. That’s why experts say it’s important to start planning for kids well in advance. But, as Matthew Saneholtz, a certified financial adviser says, “You don’t want to get too hung up on whether you’re ready financially, because no one is ever really ready and it works out in the end, but you do want to think about how you see that first year with a new baby,” he says.
Important issues to address?
Will you both return to work or will one of you quit to care for the child?
Does your employer offer maternity or paternity benefits?
Are you going to need a bigger car?
How much will your health insurance premiums climb after baby makes three?
You won’t necessarily have control over the process, but you should also discuss how many children you’d like to have and when you’d like to have them, as that affects the timeline for getting your financial house in order. For more tips on how to cut costs and the right financial moves to make click on over to Yahoo Finance.
You can also find Monica on her personal blog, The Girl Who.
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