Raising a Kid: Will You Really Spend More Than $200,000?

The latest average cost of raising a child in the U.S. is $233,610. That amount should sustain them until their eighteenth. However, considering the annual inflation rate of 2.2%, the costs of raising a child today may reach $272,049.

That’s a lot of money. For that reason, many millennials and Gen Z’ers are choosing to live child-free. They’re also advocating for safe and accessible abortion for all women. Indeed, it isn’t kind to put a child into this world if you can’t afford to raise them.

But Do You Really Need To Spend More Than $200,000 To Make Your Child Live Comfortably?

Why Is Childcare So Expensive?

First, let’s understand what makes childcare costly. The biggest expense related to it is housing. Mortgage or rent, utilities, taxes, insurances, homeowner’s association (HOA) fees, maintenance, and household essentials can make up the better portion of parents’ budgets.

According to the 2020 Consumer Expenditures Data, an average household spends $21,409.19 on housing every year. With the median household income only $67,521, families with children could be spending 32% of their income on housing alone. The more children they have, the bigger their house has to be. Hence, some parents may spend more than 32% of their income providing appropriate shelter for their kids.

If parents buy brand-new childcare products, from swaddles to bottles, the costs blow up even more. And, since infants outgrow their clothing fast, their parents need to buy them new ones every month or so. The expenses will never stop coming until the child becomes completely independent. But even then, some parents may still pay for their kid’s college tuition or car.

Raising Kids on a Budget

If raising a kid is that expensive, how come low-income families give birth to several kids?

Well, it’s entirely possible to raise a kid without spending over $200,000. However, raising many kids with a limited budget will be extremely challenging. Low-income parents may make it look easy, but ask any parent out there, regardless of their income, if kids are expensive, and they’ll all say yes.

Raising kids will never be cheap, whether your budget is $100,000 or unlimited. But you can use some hacks to lessen the financial burden. Consider the following:

• Use Secondhand Baby Products

Parents can borrow used cribs from their friends or relatives instead of buying new ones. The state of a crib won’t affect a baby’s sleep anyway. In addition, providing secondhand products for a kid doesn’t mean the parents don’t value them. It’s more important to save money but provide the kid’s needs than to splurge but not invest enough attention.

• Quit a Desk Job or Work From Home

If one parent doesn’t earn much from their job, it might be wiser to quit or find remote work. This strategy can eliminate expenses like transportation, fuel, clothing, and takeout meals. The stay-at-home parent can use their budget for those things to increase their childcare budget. And if they work from home, they can use their income to save for their child’s future.

• Move to a Less Expensive State

Parents should consider moving to another state if their careers would allow them. West Virginia, Arkansas, Kentucky, Alabama, and Mississippi are the top five least expensive states. Residing in an affordable state can significantly reduce their living and childcare costs. Parents may also find reputable daycare facilities or schools that don’t charge hefty fees.

• Prioritize Experiences Over Material Things

Children will remember their experiences more than the things their parents bought for them. Hence, parents should focus on giving their kids unforgettable experiences rather than expensive toys or electronics. For example, they can take their kid to the park for their birthday instead of buying them an iPad. Going to the park will produce valuable mementos, whereas the iPad may stop receiving attention after a year or two.

• Make Meals at Home

Parents will tremendously benefit from raising their kids on home-cooked meals. Alternatively, kids will be grateful for growing up eating food their parents themselves have made for them. Home-cooked meals save money and create opportunities for family bonding. They also instill the value of using available resources instead of spending money on pricey junk food.

In addition, kids may learn how to cook young if they grow up on home-cooked meals. As a result, they may find independent living easier when they move out of the nest.

Making a kid comfortable and secure shouldn’t run parents dry. While childcare will always be expensive, there are ways to reduce the costs without sacrificing the family’s well-being. However, all parents should have the option to surrender their babies to adoption or end their pregnancies if their budgets can’t accommodate childcare even after adjustments. No child deserves to live in poverty.