The Department of Agriculture recently estimated the cost of raising a child to be $234,900, but this does not represent the full expenditure one would assume. The USDA statistics are based on raising a child to age 17, so tack college tuition onto the $235,000 figure. The USDA estimate is what a middle-income family with annual income between $59,410 and $102,870 is expected to spend. Families that earn more than that could spend an average $389,670—not including college. A better real-world estimate that accounted for missed income, career sacrifices, and opportunity cost of not investing the money “would be closer to $900,000 to age 22 than the reported $300,000 expenditures to age 18,” said John Ward, an economist. An estimate in 2009 put the dollar amount for raising a child from birth to undergrad years at $1.1 million.
Million dollar babies: What it really costs to raise a child (TIME)
Comments
Special Features
2013 Outlook As we move into a transition year, check out LifeHealthPro's conjectures for the life, annuities, health and disability markets.
100 Best Sales & Marketing Ideas Whether you want ideas for referrals, generating leads or just listening to your clients better, we have the sales and marketing tips you need.
The Complete ELNY Saga For more than two decades, the Executive Life Insurance Company of New York (ELNY) has been bled for billions of dollars while languishing in a state-imposed purgatory.
Life Insurance A-Z This alphabetical-themed infographic will help your clients feel more comfortable discussing life insurance protection concepts.
2012 Advisor of the Year Through a very thorough nomination process we look to find a top producer who is a true cornerstone of a community.
Senior Survey 2011 In this special section, find out how seniors build their nest egg, make an estate plan, finance their health care and where they live.
