Thanks to
Lisa in this post. She refers back to a "Real Simple" article (we both wholeheartedly believe that "Real Simple" is neither real nor simple) regarding the cost of raising a child. They came to some astounding number, of course, over the course of 18 years, but monthly right now, they estimated $1100. Per child. And then Lisa, as shocked as I was by that figure, went to the
USDA Cost of Raising a Child Calculator (what could be colder than that?) and found the following information about what goes into this calculator (totally ripped from her blog post):
Housing expenses consist of shelter (mortgage payments, property taxes, or rent; maintenance and repairs; and insurance), utilities (gas, electricity, fuel, cell/telephone, and water), and house furnishings and equipment (furniture, floor coverings, major appliances, and small appliances).
Food expenses consist of food and nonalcoholic beverages purchased at grocery, convenience, and specialty stores; dining at restaurants; and household expenditures on school meals.
Transportation expenses consist of the monthly payments on vehicle loans, down payments, gasoline and motor oil, maintenance and repairs, insurance, and public transportation (including airline fares).
Clothing expenses consist of children’s apparel such as diapers, shirts, pants, dresses, and suits; footwear; and clothing services such as dry cleaning, alterations, and repair.
Health care expenses consist of medical and dental services not covered by insurance, prescription drugs and medical supplies not covered by insurance, and health insurance premiums not paid by an employer or other organization. Medical services include those related to physical and mental health.
Child care and education expenses consist of day care tuition and supplies; baby-sitting; and elementary and high school tuition, books, fees, and supplies. Books, fees, and supplies may be for private or public schools.
Miscellaneous expenses consist of personal care items (haircuts, toothbrushes, etc.), entertainment (portable media players, sports equipment, televisions, computers, etc.), and reading materials (nonschool books, magazines, etc.).
So she worked hers out to more than she thought it would be: $755 per month (she gave a yearly total of both kids at $18,120 and I did the division).
I think might be lower, but I'm not sure. Here's my breakdown, from this month, but thinking about recurring bills and how they might have changed after children arrived:
Housing: we already owned our house and would have continued to do so, so it's ridiculous to put our mortgage payment here. I'd estimate our electricity costs have gone up (we're on budget billing) about $30 a month since they arrived, and I won't take into consideration what Ameren increased on their own. Our gas bill has gone down, by getting rid of the gas stove (not because of them) and because of our new HVAC system, but I won't list savings here either. Furniture and appliances? Hmm. All their furniture is hand-me-downs. I don't know what to say here. The pool was on freecycle and Ann gave us the swingset. We did rehab the attic for their room, but is it fair to include that here, since we would have rehabbed it either way? I'm not sure. The AC units in their room were given to us. I just think it isn't fair to put more than the increased electric here. $30.
Food: I could take our monthly food expenses and give them half (we spend about $110 weekly, so make that $450 and divide by two to get $225). We do belong to the CSA, which is pricey, but I rarely go to the regular grocery store except for non-perishables. It helps that we have deer, Soulard Market, and a bit of a garden.
Transportation: well, we might have gotten a smaller car when we replaced the van (we had the van pre-kids), but I don't know if we would have gotten a better deal than we did, buying used through Enterprise. Gas, sure. I can definitely put that here with treks out to the county for dance class and so forth. I fill up every 10 days for about $30 each time. That's three times a month, I'll attribute one of those full tanks to kids, how about? So that's $30.
Clothing: We spend very little on kids' clothes due to generous neighbors who pass things around, and gifts from relatives. Maeve's clothes are almost entirely given to her. Sophia is close to that. But I'll through $10 in here because I don't pass underwear down and there's always something--a pair of tights or swimming suit or a winter coat--that I can't find passed down. $10.
Medical: now this one fluctuates a lot. The year Leo was born we spent about $4K on healthcare with the way our insurance works. This year we've spent $632 and about 1/2 of that was kids (well-baby is covered 100% and I get a lot of thyroid work done). So $300 divided by 8 months this year is $37.50
Education: The girls' school is free and Leo doesn't attend school. The uniforms are hand-me-downs, gifts, and thrift store purchases. I spent $30 on supplies for both girls total, for the year. Lunches fit into the food budget. The school is 10 blocks away. We rarely have a babysitter and oftentimes it's a relative. Umm. That comes to less than $5.
Miscellaneous: As Lisa put it, the fun part. Sophia takes Irish Dance and Girl Scouts and Piano. Maeve will be starting Tae Kwon Do and Piano but hasn't yet. The portable DVD player? We've had it for almost 2 years, what do you think I should have that be worth? $10? We do belong to Netflix, although we would have anyway, but maybe we would have gone with 2 DVDs at a time instead of 3, so there's another $5. Maeve's haircuts are free and Sophia's are $9, every other months, so there's $4.50. Signing up Sophia for a feis, I'd say one every two months. Camping with girl scouts, birthday parties, Christmas spread over the year. I did the math on what I knew for sure and came up with a low number per month, but I added $200 to it to cover the birthday parties and hoo-ha I'm not thinking of. This will increase geometrically with time, I realize, but for right now: $295.
So right now, with a 4th grader, kindergartner, and 19 month old, we spend just over $630 a month on our kids. Divided by 2 (assuming that Leo just doesn't cost that much right now), I have $315/month/child. If I do divide it by 3, that's $210/month/child. Yes, we're lucky because of our school situation and because we live pretty darned cheaply and our kids don't have style-conscious peer pressure kinds of friends. SO LUCKY.
The deer helps a lot--we don't buy meat--Mike drives a 1999 car and the Mazda wasn't too expensive (and the van would have been replaced regardless of the kids. We have an awesome library system. We don't live in suburbia and go past tempting stores all the time--and besides dance, everything we do is really close by. Cloth diapers. Sophia has a handheld game thing, but she buys her own games with birthday money. You know? And I'm sure I'm forgetting something here, but that isn't the point.
The point is having this magazine blithely announce that it will cost $1100 a month, per child, to raise up a child right. And that's crazy talk--there's no way I could have figured in enough estimation to bring my totals up $800 per child (and that's not counting Leo). I don't understand it. Are we just insanely frugal (we are frugal, but not that frugal, we take vacations every other year or so (not included here), we have internet access and air conditioning and two cars and so forth. I don't rinse out and reuse ziploc bags or aluminum foil or anything like that. So I guess I just don't get it.