How Much Does Raising a Child Cost

Raising-a-Child-Cost

Baby vs. Bentley – Which Costs More?

We all know raising children can be very expensive. But does it cost more than a brand new Bentley Continental GT at a whopping $189,000 MSRP? The reality might shock you. Let’s break it all down.

Pregnancy, Delivery and Newborn

Every second in the U.S., 7.4 little bouncing babies are born. The birth rate has gone up markedly since 1910 when there were 2,777,000 babies born, compared to the 2010 count of 4,131,019 little bundles of joy. That little bundle is likely less than 10 pounds but has already cost her parents a pretty penny. On average, $98 billion dollars is spent nationwide on pregnancy, delivery and newborn costs. The entire baby industry in the U.S. is worth $30 billion, which was the same as Russia’s defense budget for 2012.

The initial costs of having a baby include formula, decorating and furnishing the baby room, clothes and diapers. Formula runs $160 a month, the baby room is a one-time expense averaging $1,100, diapers cost anywhere from $80 to $130 a month.

There are some alternatives, such as hand-me-down clothes and furniture. And of course, the numbers above are only estimates – if you really wanted to live like a celebrity, you could spend up to $2 million on a baby wardrobe (like Suri Cruises’) or $3500 on a Swarovski crib (like Beyonce did for her baby). Those with boys will save even more money as parents tend to spend about $3,000 more on girls.

Childcare Costs

Childcare is one of the biggest expenses of raising a child. Daycare can run anywhere from $3,582 to $18,773 annually, with the average sitting at $11,666. That comes out to $972 a month. Hiring a nanny full-time runs between $500 and $700 per week ($2,167-$3,033 monthly). Part-time nanny care costs $400 to $650 a week, which works out to $1,733-$2,817 a month.

Toys and Gifts

If Santa existed, he’d need to get a good job for the other 11 months of the year. Parents spend $330 a year on gifts for their children. The entire U.S. toy industry is worth $21.5 billion. A birthday party at McDonald’s can cost $60-100. If you want to birthday party like a celebrity baby, you could spend $1,000,000 to have Kanye West perform, which is what L.A. Reid did for his son. That entire party ranked in at $1,384,000.

Education

The United States Department of Education spends $45.4 billion (which would buy over 226 million iPhones) on education.
The cost of college is going to depend a great deal on where your child will go. Public college costs $81,356 and private college costs $161,904.

The Basic Facts

The cost of raising a child has gone up 40% from 2000 to 2010. Although the cost of raising a child varies, the percentage of money stays consistent through all income levels. Not counting college, parents making less than $44,500 a year will spend $143,790 to raise a child.

The Verdict

Parents with a median income spend on average $197,700 to raise a child. So yes, a baby trumps a Bentley, even at $189,000 MSRP.