For the average American parent, raising a child comes with a price tag of at least $12,980 every year. By the age of 17, that’s well over $230,000—and that’s before college costs come into play. High-earning families spent even more—over $370,000 according to the research. 1
Of course, child-rearing costs vary from family to family, and it’s far more expensive to raise kids in some high-cost-of-living states, like Oregon and New York.2
Plus, kids don’t magically stop costing you money once they turn 18. College, rent, insurance, and helping out adult children can all add up.
No matter how old your kids are, spending money is an unavoidable part of raising them.
What does that money go toward?
Here's a breakdown of the biggest costs of raising kids.
"The experience of raising children can create lifelong memories you can never put a price tag on."
Whether you’re raising a young child, sending your kid off to college, or watching your kids raise the next generation, kids cost a lot in America. There’s no getting around that.
And money is just one way you’re spending on your kids. In fact, research shows that parents aren’t just spending more money on children these days—they’re also spending more time and energy on their kids than ever before.8
Why?
Because parents and grandparents want to give the kids in their family the best possible life.
Often, that means doing more than just housing, feeding, and educating kids. It can mean taking them to ball games and concerts, paying for special lessons, throwing memorable birthday parties, taking vacations, and more. These activities and experiences you enjoy with your children can create lifelong memories you can never put a price tag on.
Of course, all of that does come with some up-front costs. But I think most parents would agree that the costs are worth it.
If you’re thinking about how to balance the costs of kids with your personal needs and future, call my office. I’ve helped lots of parents and grandparents figure out ways to give their kids a great start while still saving for the future, and I’d be honored to help you, too.
The Redwood Planning Team Redwood Financial Planning
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