When you’re thinking about having children, the finances are important. A rough estimate of the cost of raising a child has been placed at $241,000 outlining the costs from infancy to adulthood? The Fraser Institute thinks differently and think that you can squeak by raising a kid for only $3,000-4,000/year.
If you stick to the basics.
“Sarlo said the exclusion of daycare is not because it is not a legitimate expense but because the majority of parents have zero child-care costs” – What? Most of the parents I know are using some form of child care. This doesn’t seem like an accurate inclusion – just what are these basics that place the cost of having a child at only $250/month?
One day of child care a week costs $250/month to enable me to work from home. Here is an example of the numbers I came up with, an estimate that easily doubled theirs. Here are some of my estimates for two children.
Fall: The Most Expensive Parent Season of the Year
It was ironic to read this during one of the most expensive seasons of the year for parents with children, registration time. Those costs alone is something that takes a bite out of the budget around here. I know these are considered ‘extras’ but for the majority of parents we know, this is the reality. That’s swimming lessons, preschool and riding for the preschooler and toddler gymnastics for the little one.
Swimming Lessons – $112 (two sessions)
Preschool – $680 (two sessions)
Toddler Gymnastics $240.00 (two sessions)
Tiny Tots Riding Lessons ($135)
If you’re going to put your child into activities, the costs are high. That’s one of the biggest expenses that we have around here when it comes to thinking about the differences between having children or not. The cost of activities are likely going to increase as the children get older. Next year, school fees and bussing fees will replace the cost of preschool. The year after, school fees for one child, preschool fees for the other, and the cycle goes on.
Food, shelter, clothing, education fund. Those are some of the basics that we see in our budget. Some of the costs of having children in our household include
Housing – $4,800 ($400 monthly added cost for a more child-friendly home than we were living in pre-children)
Food – $2,050 ($40/week average buying additional fruit, veggies, kid friendly lunches that wouldn’t have been purchased pre-children)
Essentials – $1,200 (diapers, basics, drug store purchases)
RESP – $2,400 (increases with every child)
Clothing – $1,200 (two children
To get the total provided by the Fraser Institute I suppose that you could nix the housing (or choose family friendly housing the first time around), nix the RESP and reduce the clothing and food budget. Here, those are some of the biggest costs that we experienced when it came time to think about having children.
Summer camp, toys, holidays, birthdays, adding a child on to your vacation plans, birthday parties, day trips, summer camp, entertainment – those are some of the extras that I don’t see included in the breakdown from the Fraser Institute, but when it comes down to it, those costs are likely going to increase when you decide to have children and they are present in most families.