How to Determine the Cost of Kids
Estimate anticipated expenses., Divide the above expenses among your children., Compare your per-child expenses with the national and regional averages., Readjust figures as necessary or annually when the U.S. Department of Agriculture releases new...
Step-by-Step Guide
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Step 1: Estimate anticipated expenses.
Calculate housing costs.
These can be expected to total roughly 33 percent of your overall household expenses.
Housing costs consist of mortgage or rent payments, home maintenance, property taxes, utilities and renter's or homeowner's insurance.
Allow another 33 percent for education and childcare expenses: daycare, baby-sitting, primary and secondary school tuition, books and materials.
This does not include money set aside for college.
Figure meal expenses, including the cost of food purchased from grocery stores, restaurants and school cafeterias.
Add in transportation costs.
These consist of a portion of your monthly car payments, gas, maintenance, repairs, automobile insurance, public transportation and travel fares on trains and planes.
For purposes of figuring the cost of child-rearing, you would include here only those costs incurred specifically in caring for your children (expenses you would not have if you didn't have kids).
Include clothing expenses for all children's apparel as well as diapers, shoes, uniforms, athletic gear, dry cleaning and alterations.
Tally all medical and dental care, prescriptions and supplies not covered by insurance.
Include health insurance premiums only to the extent that they cover your children.
Don't include premiums paid by your employer. -
Step 2: Divide the above expenses among your children.
The more children you have, the more you would share the costs.
This will lower the cost per child. , You can use the interactive tools and annual report from the Center for Nutrition Policy and Promotion at the U.S.
Department of Agriculture.
Families in the northeast U.S. tend to have the highest expenses nationally, while families in the South have the lowest.
Chart or graph your results as a visual aid. , -
Step 3: Compare your per-child expenses with the national and regional averages.
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Step 4: Readjust figures as necessary or annually when the U.S. Department of Agriculture releases new data.
Detailed Guide
Calculate housing costs.
These can be expected to total roughly 33 percent of your overall household expenses.
Housing costs consist of mortgage or rent payments, home maintenance, property taxes, utilities and renter's or homeowner's insurance.
Allow another 33 percent for education and childcare expenses: daycare, baby-sitting, primary and secondary school tuition, books and materials.
This does not include money set aside for college.
Figure meal expenses, including the cost of food purchased from grocery stores, restaurants and school cafeterias.
Add in transportation costs.
These consist of a portion of your monthly car payments, gas, maintenance, repairs, automobile insurance, public transportation and travel fares on trains and planes.
For purposes of figuring the cost of child-rearing, you would include here only those costs incurred specifically in caring for your children (expenses you would not have if you didn't have kids).
Include clothing expenses for all children's apparel as well as diapers, shoes, uniforms, athletic gear, dry cleaning and alterations.
Tally all medical and dental care, prescriptions and supplies not covered by insurance.
Include health insurance premiums only to the extent that they cover your children.
Don't include premiums paid by your employer.
The more children you have, the more you would share the costs.
This will lower the cost per child. , You can use the interactive tools and annual report from the Center for Nutrition Policy and Promotion at the U.S.
Department of Agriculture.
Families in the northeast U.S. tend to have the highest expenses nationally, while families in the South have the lowest.
Chart or graph your results as a visual aid. ,
About the Author
Grace Lane
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