Is the cost of starting a family financially feasible? Should the cost of starting a family even factor into your family planning and decisions?
Do you have a spare $245,340 lying around? Probably not, and you don’t need it all upfront, but this is the new estimated cost of raising a child from birth until 18 years of age in the United States, according to the U.S. Department of Agriculture.
When accounting for inflation for the next 18 years, it will eventually cost about $304,480 for the average American family to raise just one child. This figure includes birthing costs, education, food, housing, and some activities, but it doesn’t include college costs, which are estimated to be $18,390 for a bachelor’s degree at a public university later on.
These costs vary depending on which area of the country you live in, what your family income is, and how frugal your lifestyle is, but in most cases, you can expect to pay a minimum of $11,000 per year for your child’s first 18 years of life.
Can You Afford The Cost Of Starting a Family Of Your Own?
If you’re thinking of starting a family or want to add another child to your growing nest, it’s important to look at the financial implications as well as the emotional ones. As the Pew Research Center points out, finances are a major concern for parents in America and the affordability factor strongly influences people’s decisions to have kids. Millions of babies are born each year, so it’s not an impossible dream, but this baby-readiness guide will help you determine whether it’s financial feasible to add a child to your family.
Pregnancy & Delivery or Adoption
Pregnancy and delivery fees vary widely, depending on your insurance coverage, possible complications, and whether a C-section is required for the birth. If you have excellent health insurance or qualify for Medicaid, your prenatal care and delivery expenses will be minimal, but folks without insurance can expect to pay between $30,000 and $50,000. The choice of hospital plays a role in your delivery costs as well, according to a study from the University of California at San Francisco.