NEW DATA SHOWS THAT RAISING CHILDREN IS MORE EXPENSIVE
THAN EVER.
EVERY YEAR THIS DATA COMES OUT, AND IT SHOWS HOW THE COST OF
RAISING A CHILD HAS OUTPACED INFLATION, CONSIDERABLY.
THE COST FOR A MIDDLE INCOME FAMILY TO RAISE A CHILD BORN
IN 2015 TO AGE 18 WAS $233,610,
A 3% INCREASE FROM THE PREVIOUS YEAR.
IT GETS MORE AND MORE EXPENSIVE, AND IT OUTPACES
INFLATION, SO IT'S BECOMING MORE AND MORE OF AN ISSUE FOR
MIDDLE INCOME HOUSEHOLDS ñ MIDDLE INCOME HOUSEHOLDS EVEN
HAVE KIDS.
IT EXCLUDES PAYMENTS FOR COLLEGE, AS WELL AS FINANCIAL
CONTRIBUTIONS FROM SOURCES OTHER THAN PARENTS,
INCLUDING GOVERNMENTAL AID.
OBVIOUSLY THE AMOUNT YOU SPEND ON YOUR FAMILY IS RELATED
TO HOW MUCH YOU EARN.
IF YOU LIVE IN A WEALTHIER HOUSEHOLD, YOU ARE MORE LIKELY
TO USE DAYCARE, AND YOU SPEND MORE THAN
WORKING-CLASS HOUSEHOLDS.
SO, DEPENDING ON WHAT YOUR INCOME LEVEL IS, YOU MIGHT
SPEND A LITTLE MORE OR A LITTLE LESS.
THIS IS UP TO THE AGE OF 18
AND DOES NOT INCLUDE THE COST OF COLLEGE.
I DON'T KNOW TO WHAT DEGREE THEY PUT IN PRIVATE SCHOOLS.
AGAIN, IF YOU ARE POOR OR MIDDLE-CLASS, MOST OF AMERICA
IS NOT RELEVANT TO YOU, BUT IN THE COASTS LIKE LA AND NEW
YORK, THE SONY PEOPLE SEND THEIR KIDS TO PRIVATE SCHOOL IN
HIGH SCHOOL ñ SOME IN MIDDLE AND ELEMENTARY SCHOOL ñ YOU AT
THOSE IN AND THESE NUMBERS ARE SUPER LOW.
THIS IS A WALKING AD FOR BIRTH CONTROL.
BECAUSE, YOU DON'T USE BIRTH CONTROL, IT COULD COST YOU ON
AVERAGE $263,000.
TRUST ME, THE CONDOM IS CHEAPER.
DEFINITELY.
THE METHODOLOGY IS A LITTLE TRICKY, THE WAY THEY MET ñ THE
WAY THEY MEASURE HOW MUCH FAMILIES SPEND.
I WANT TO GO TO THE LAST GRAPHICS, 30,
AND IT KIND OF SHOWS YOU A GRAPH OF WHAT YOU ARE LIKELY
TO SPEND THE MOST ON IN ORDER TO RAISE THESE KIDS, AND OF
COURSE UNDERSTANDABLY, HOUSING IS AT THE TOP OF THAT LIST.
YOU SPEND THE MOST ON HOUSING.
THERE ARE A NUMBER OF REASONS WHY THAT IS THE CASE.
YOU MIGHT MOVE TO A WEALTHIER AREA JUST TO ENSURE THAT YOUR
CHILD GOES TO A BETTER SCHOOL, OR YOU MIGHT RELOCATE TO A
LARGER HOME, JUST TO MAKE SPACE FOR THE CHILD, SO THAT PLAYS A
ROLE, BUT ALSO KEEP IN MIND THAT WHEN IT COMES TO HOUSING,
YOU ARE LIVING THERE TOO.
SO THE AMOUNT THEY ARE SPENDING ON HOUSING ISN'T SOLELY FOR THE
CHILD, IT'S ALSO FOR THE ENTIRE FAMILY.
I KNOW, BUT IT DOES MAKE A GIANT DIFFERENCE.
WHEN I WAS SINGLE I LIVED IN A ONE BEDROOM, OR A STUDIO
COME AND IT DIDN'T COST THAT MUCH.
BUT WHEN YOU'VE GOT FOUR PEOPLE NOW IN THE HOUSE, WELL YOU
NEED A MUCH BIGGER SPACE AT A COST A LOT MORE.
NOW, IF YOU ARE POOR, THAT'S WHY THEY SPEND LESS, BECAUSE
YOU JUST CRAM PEOPLE IN.
WHEN WE HAD MY SON WE WERE IN A MUCH SMALLER PLACE, AND
THAT WAS IT, SAD DAY FOR US, RIGHT?
OF COURSE IT VARIES.
OF COURSE WHAT IT DOESN'T TELL YOU IS THE BENEFIT YOU GET FROM
THE KID, WHICH IS IN A LOT OF WAYS IMMEASURABLE.
LATER ON THEY BLAME YOU FOR EVERYTHING.
THAT'S TRUE.
THEY REBEL AND DO THINGS YOU DON'T WANT THEM TO DO,
MAYBE GET MIXED UP WITH THE WRONG CROWD.
YOU GOT ALL THAT TO LOOK FORWARD TO, PLUS COLLEGE
EXPENSES.
BUT IT IS EXPENSIVE, THERE'S NO QUESTION ABOUT IT, AND NOW YOU
GET A SENSE OF HOW EXPENSIVE IT IS.
I STILL RECOMMEND IT, I STILL THINK IT'S ABSOLUTE
WONDERFUL, BEST THING I EVER DID, JUST, BUYER BEWARE.