How Much Does it Cost to Raise a Child?
The family is the central unit in a society, but it is also where half a million dollars from one’s financial savings go to. Raising a child can be a fun and amazing experience, but the cost of living for a family of 2 to 3 children is becoming more and more expensive, especially with the financial crisis making the necessities more and more difficult to acquire. If you and your spouse are planning on having children, it’s always a good idea to get an idea of how much does it cost to raise a child.
According to some resources, for the cost of raising a child in the United States can amount to an estimate of $270,000 or more from birth till the child reaches the age of 18. Depending on the annual income of the parents and all other factors, the estimated amount could be lesser or higher. There have been research and statistics done already to determine how much raising a child would normally cost for the average American family, but these statistics aren’t as reliable due to several factors. The first is the rise and fall of the economy, which of course would affect the prices for food and water, medical services, and the annual income of both the parents of the child. Second are the actual expenses of the family, which aren’t normally included in any of the major categories like cars, heavy electrical bills, internet access, and the like. But in order to give people an idea or a rough estimate of how much it would cost to raise a child, here are some of the things that are included in the family budget:
· The location and housing to which the family resides in would definitely affect the cost of raising a child. This is by far the biggest expense that takes out about approximately 35% of the family’s annual income. In order to be able to save money while finding a good place to raise the children, you can decide to move into a home that isn’t too large but accommodating at the same time for the entire family. You can also go for renovating and improving your existing home instead of moving out and finding a new home, which would then require a percentage of the expenses to go into moving and redecorating. You can also save up by recording and monitoring your tax deductibles, which include your interest and real estate taxes.
· Expenses for food and water when raising a child from birth till he or she is 17 would range approximately from $26,500 to $40,000, comprising of 15% to 20% of the overall expense. In order to be able to save up a little bit on this, you can limit the amount of money you give to your children for fast food and other meals outside of the usual 3-meal a day scheme. This can already save up over a hundred dollars a year, allowing you to use the extra money on other important necessities.
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