Starting a Family & Teaching Kids to Save
How Much Will a Child Cost?
Everyone knows having and then raising a child costs money, but how much? Estimating the cost of raising a child can be difficult, but if you’re considering having children, you should have some idea of the impact it will have on your family’s finances so you can plan ahead.
Roughly speaking, assume a child will cost around $10,000 a year until they reach the age of eighteen, more if they go to college (and you foot the bill). Then factor in any additional costs, like the price of private school (if that is what you plan) or of other “special” costs or considerations.
Keep in mind part of the cost will be offset through tax deductions and tax credits.
The key is to plan ahead so raising your child will be a source of joy and not a financial burden you did not anticipate.