According to the USDA’s 2010 report, raising a child costs at least $220,000. This cost is the average cost a middle-class family pays for shelter, food, health care, clothing, transportation, child care, education and other expenses. They further break down the average cost per child per year as $11,800 to $13,880. Yikes! If you are on the fence about having kids, this report will certainly sway you in the direction of remaining childless.
However, as a mom to three kids, I can attest (as many other parents including Beating Broke can), that it doesn’t have to be this way. My husband and I have three kids, which, according to the report, should run us a minimum of $35,400 a year, not including our other expenses. My husband is just completing his Ph.D. and starting his career. While we count on him being able to make a large salary in the future, right now between his job and my part-time work from home, we are making a little less than $40,000. We are most definitely not spending $35,400 a year on our kids. Here is how we cut corners:
–Shop for clothes at garage sales. Babies and little kids don’t really care about their clothes; you can find fashionable, barely worn clothing at garage sales for less than $1 per piece or outfit. Save money this way. I know it is tempting to buy those adorable, brand new baby clothes, but babies outgrow outfits in weeks. Let someone else spend their money buying those clothes so you can snatch them up for pennies at a garage sale. If you don’t go to garage sales, check out Craigslist or eBay.
–Breastfeed if possible. Not every woman is able or willing to breastfeed, but if you are, breastfeeding can save nearly $1,000 that would have to be spent on formula for the first year of the child’s life.
–Use cloth diapers. Cloth diapers do require a large financial investment upfront, but they will last for the two to three years your child is in diapers, and they may even last for use by your next child. If cloth diapers make you squeamish, make sure to never pay retail for disposable diapers. By finding deals and using coupons, you should be able to reduce your diaper cost significantly.
–Accept all hand-me-downs. If you are the lucky recipient of hand-me-downs, please take them. Honestly, for a newborn, the only thing you need to buy brand new is a crib mattress and a car seat, for safety reasons. Everything else such as strollers, toys, cribs, clothes, etc. can be given as a hand-me-down or bought second hand.
There are some costs that you can’t save money on such as day care and health care. In all the other areas, there are ways to cut corners. Get in the practice of cutting corners when children are small and save the difference. Forgo the brand new outfits and large ticket items like a crib and instead go secondhand and save the difference. Bigger expenses loom ahead such as college. As Beating Broke stated in an earlier post, Stop Adding Up the Cost of Raising Children. It is possible to raise them for significantly less than the government suggests.
What are your suggestions for saving money when raising children?
photo credit: Sukanto Debnath
Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking. She resides in New York, where she loves the natural beauty of the area.
Mellissa, I agree that number is a little excessive. I think maybe they calculate a portion of your home costs to the child, which isn’t realistic since you would most likely be paying those costs with or without the kid. However, even if the number is right, they’re worth every penny!
I also can’t imagine needing to spend that much on children. We buy almost everything used. Carseats we buy new of course. The only item in their bedrooms we’ve bought new are 1 crib mattress and a lamp..everything else was used or a gift…we’ve bought almost no new clothing for them, just training underwear, some socks, a couple of pairs of shoes and maybe a couple of shirts/onesies.
We also breastfeed; my first two were weaned about 9-10 months, this time I want to nurse til 1 yr if I can. Now, if only the older two would potty train..3 in diapers is our biggest child-expense!
There is pressure to buy a lot of things, clothes, toys, educational things and a lot of conveniences in food. The reality is kids need your time and after they are weened from breast milk or formula can eat what you do. Have you ever seen what a child can do with something as simple as a box. Spend time with your children reading to them, teaching them to read, expose them to good language and teach them values. All of those things are practically free. McDonald’s is not a necessity! Designer clothes is not a necessity either. We raised our children to be successful adults spending time and effort with them.
I agree with krantcents. I grew up using my imagination for everything. Making a cardboard box into a space shuttle was loads more fun than a video game. In fact, my parents used to require us to play outside. We ate most dinners at home, which saved a lot of money and was also a great time for the family to bond and discuss our day. If that figure is really correct, then we – as a country – need to re-evaluate our spending habits. If this recession can’t humble us, what will? It’s time to make smarter, more realistic financial plans and teach our children to do the same.
I agree, I have done the math and the savings for second hand clothes will save thousands in this time period.
I can’t imagine having three in diapers at once! My word! We had two for a few months, but thankfully it only lasted that long. Best of luck, Savannah!
I have always found that figure to be quite high, but then again, I don’t have kids. If we feel as though we have to buy our kids the newest and most expensive items, then we may very well exceed that figure.
I had no idea how much money you could save by breastfeeding!
I completely agree with you about the clothing. I often wonder how much these parents who buy expensive clothing actually spend during the first 5 years of their child’s life!
The big inflation to the USDA number is college. The average is much higher than the mean, because some schools are costing upwards of $50K per year now, and the kids are taking 5 years to graduate.
All your ideas are good. I’ll add:
– start a 529 plan, and go to an in state school (move if necessary), or skip college altogether as I would have done in hindsight
– Have them eat what you eat
– Turn off the TV and all the commercials that come with it
– Instill good values so that they don’t “need” the coolest new things
– Don’t give them a cell phone, or give them a pre-paid plan
TJT–Great additional tips! I haven’t had to deal with the cell phone issue yet, but my son, who is 7 has already asked!!
College is insanely expensive, but the USDA figure is only to age 18, so it is not even including college! They say it costs this much just to raise them to age 18.