GREENSBORO, NC -- Any parent will tell you, just when you think you're financially ready to have a child, you're not ever financially ready for any of it!
Check out the cost of raising a child by region map from the USDA. It's a snapshot of the cost of raising a child born who was born in 2012. The south is the cheapest region at $226,260. That same child, raised in the northeast is an extra $50,000. One more note to add, rural areas come in under the $200,000 mark.
Certified Financial Planner Matt Logan knows those totals are overwhelming when you think of the big picture.
"First, the cost of housing is the highest. This is a reflection of the need for more space to house your child. That 30% could very well be in the budget whether you have a child or not depending on your home size, so don't get too upset about that. Child care and education are second at 18%. For you single parents or households with two working parents, this number will be a higher part of the expense starting out if you have a need to pay for childcare. Food is usually lower starting out and grows from there. Health care depends on your medical plan and tends to be higher in the beginning in most cases."
Having a kid is like buying a house and having no furniture in that --- at the beginning, you have sticker shock. The baby needs to many things you didn't think about. But surprisingly, the cost of the kid doesn't seem to change all that much.
Here is some further information on the expenses based on the age of the child. You can see that costs do rise as your child ages 0-to 2-- $12,940 a year and then 6-8 years old it's about $12,800 a year and then 15 to 17 years old you're looking at $14,970.
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Matt Logan Inc. is an independent firm with securities offered through Summit Brokerage Services, Inc. Member FINRA & SIPC, and advisory services offered through Summit Financial Group, Inc., a Registered Investment Adviser.
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