The Cost Of Having Children

What does it cost to raise a child from birth through age 17? Using data from the Consumer Expenditure Survey, the U.S. Department of Agriculture reports that in 2003, it averaged $130,290 when household income was below $40,700, $178,590 when household income was between $40,700 and $68,400, and $261,270 when household income was over $68,400. 148,260.

While money should never be the only consideration in deciding whether or not to have children, it should at least be a point of discussion. Each new addition to your family will be costly. Not only do babies take more money, they take more time. Before you decide to add to your family, talk to your spouse about the additional costs associated with a third person in the household. How will you alter your current spending and rearrange your schedules to accommodate your new bundle of joy?

Few young couples can handle childbirth expenses without financial help. That is why it is extremely important for expectant mothers and fathers to go over their health insurance benefits to see exactly what's covered.

Check your coverage carefully for obstetrical fees, well-baby pediatrician visits, immunizations, prenatal vitamins, and genetic counseling. Also, know the amount of the deductible you will have to pay before benefits begin.

Now is the time to write your will, buy life insurance, and if you haven't already, start saving for your child's education. Financial planning is important. Don't put it off!

During baby's first year, you'll change about 3,500 diapers. You may want to compare the price of the following:

The following is a list of items you may need to add to an already well-stocked medicine cabinet and first aid kit just before baby arrives.

If you're considering children, fill in the blanks on the next two pages to get an estimate of what it might cost.

Before you start shopping for a layette, you'll have some clothing needs of your own. Maternity clothing can be expensive given the short time it's worn. Make sure you have a wardrobe plan and budget in mind before you go shopping. You may be lucky and borrow outfits from friends.

With the options available in childbirth today, there are several ways parents can cut these medical costs. Comparison shop for an obstetrician and a hospital. Both often charge widely different fees for the same services.

If you choose to breastfeed, consider the costs of nursing bras, mother's supplements for iron, vitamins, and calcium, disposable nursing pads, breast pump and cream.

Don't assume if you died without a will everything would automatically go to your spouse. Both husband and wife need a will. Use it to name a legal guardian for your child so the state will not have to designate one. Make an appointment with a lawyer today.

Many women assume they can't afford not to work. But often they have not calculated all the costs of working. In some cases, it may not be financially worth heading back.

Quality child care can be expensive unless you have a willing grandparent. If you have someone come to your home to care for your baby, you may be obligated to pay Social Security and Medicare taxes and federal unemployment taxes for the employee. Care provided outside the home isn't subject to these obligations.

Don't forget to claim the federal childcare tax credit on your income tax return.

	Age in Years
	Never	8 or less	9 -11	12-14	15-16	18 or older
1. Receive an allowance.
2. Open their own checking account
3. Apply for a personal loan
4. File a tax return without help
5. Open a saving account
6. Earn all of their own income
7. Know their guardian in case of parents’ death
8. Know amount of family income and indebtedness
9. Know about family life insurance
10. Be responsible for own clothing budget
11. Know about family care (health and disability) insurance
12. Know contents of parents’ will
13. Figure net worth statement
14. Make payments on personal loan (loan in their name)
15. Make payments on personal loan (loan in their name)
16. Help create a budget
17. Fully responsible for checking account
18. Know location of family savings
19. Purchase own assets.
20. Know amount of family emergency fund
21. Be told family income
22. Be fully responsible for own credit card
23. Help keep records about family income
24. Make decisions about own financial assets
25. Know family monthly living cost
26. Know financial assets that the child owns.
27. Know location of papers after parents’ death

Pictures of chickens, flowers, wheat, a boy looking through a magnifying glass, irrigation pipe, soybean pods, and fruits and vegetables.	Cooperative Extension Service





Cooperative Extension Service	Agricultural Experiment Station
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Money and Marriage Issue 10. The Cost Of Having Children: If Children Are Part Of Your Plans

Money and Marriage
Issue 10. The Cost Of Having Children: If Children Are Part Of Your Plans