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06-16-2012, 03:13 PM #1
This child can be yours ~ for the small price of $235,000
That's what the new 2012 government report released Thursday states anyway...
Apparently a child born last year will cost a middle-income family this amount from the time of their birth up thru the age of 17.
The estimate includes housing, transportation, child care, education, food, clothing, health care and misc expenses.
Wow ~ the gov't has never met any of us - huh???? ..... lol
(No wonder my son always liked to tell me how deprived he was...haha)
- 06-16-2012, 06:18 PM #2
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This probably includes buying the kid a new Iphone every year from age 6 onward....06-16-2012, 07:12 PM #306-16-2012, 08:23 PM #406-16-2012, 08:24 PM #5
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Yeah,thats assuming they get every little thing at full retail,you have no friends for hand-me-downs,never heard of resale shops,have no one to borrow from,have no other kids,are paying for university,eat out a lot, and can't say the NO word.
That you never heard of coupons,you have no building skills and NEVER HEARD OF THIS SITE!lol
How do they get these figures. I say 25%.
What say ladies?06-16-2012, 08:31 PM #606-16-2012, 09:10 PM #7
Here is the pdf link to the actual study that shows in detail how they got these figures.
Here is an example of what is included in the housing category
"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). Mortgage payments included principal and interest payments. Overall, principal payments constituted 15 percent of overall housing expenses"06-16-2012, 10:05 PM #806-16-2012, 10:20 PM #9
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Sorry, Uncle Sam, you're telling me this after 10 Houseapes & you expect me to believe you when you can't even get the nation's unemployment numbers right?? Gimme a break.06-16-2012, 10:46 PM #10
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I dont think its terribly far off. A little over 13k a year. We have three people in the family and spend about $65k a year on life. Me and my DH are more expensive but my daughter is why we have a bigger house, spend more on groceries, entertainment and child care. I would say its reasonable.06-16-2012, 11:02 PM #11
Sounds steep to me, but I get alost all our clothing and toys free/ next to nothing so perhaps I'm not the best judge. Also I think it's harder to 'get away' with that once they're older.....sound so high to me, but have any of us REALLY tallied it?06-16-2012, 11:11 PM #12
I don't thinks it's ridiculous. It's too high for our family, but about right for most of our friends. They upgraded their homes and cars when children hit the scene, take 1-2 family vacations a year, pay for childcare and various lessons/activities (dance, riding, Mandarin Chinese, soccer, piano, fencing, summer camps, zoo memberships, etc). Many of them have the additional cost of private school and/or tutoring. Add in health insurance and other medical expenses. It adds up quickly.06-16-2012, 11:33 PM #13
Something in the study that I found interesting was the comparison with the1960 study
There was a decrease in percentage in miscellaneous. A greater % was spent in 1960.
Clothing expense was almost half was it was in 1960.
The percentage spent on health care doubled since 1960.06-17-2012, 12:24 AM #14
I have always hated these calculators when they come out. I think the people get picked when the Consumer Experience (I think that is the word) Survey is mailed out to lots of families. Those who fill it out, and it goes into lots of details about what you buy and how often, how many electronics in the household, etc., then get put in a pool and some from each financial category get picked for quarterly follow-up surveys both verbal and written, for two years. They must rotate through new people every so often.
There is a problem with things like that is the response bias inherent in things like that. People who act a certain way are more likely to fill one out in the first place. People will often make themselves appear in as good of a light as they assume the audience wants them. Maybe some really are buying hand-me-downs/thrift store, but they put down the actual retail price to make themselves feel better. There is non-response bias by those who can't be bothered, by those who think surveys like this are an invasion of privacy, by those who forget. The list goes on....
For their baseline, they assume a two parent, two child family living in a 3 bedroom house because the two children don't share rooms. The originating survey, I've seen them in the past, has many more income categories than the three in the released study. They do separate out single parents from two parent households but that is it. So they are lumping ALL sorts of situations into only three income categories which is going to smooth out a lot of differences. I think higher income people are more likely to answer these sorts of things (partly because they may have more time), so that is going to skew numbers to the higher end.
They also make major assumptions. They actually state that it is too difficult to break out how much wear and tear, gas and insurance, etc. are because of the children so they assume all costs for a vehicle and spread it out across the family. Those families that do a lot of local things, without a lot of driving for the kids, but Dad or Mom uses the vehicle tons to go to work or whatever, the costs is still assumed as part of the children's impact on the family finances. This is even if Mom or Dad has been working the same distance and putting the same amount of wear and tear on the vehicle since before the kids came and the kid impact is minimal.06-17-2012, 07:06 AM #15
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another thing they don't take into account is that, if you buy a bigger house because you have kids, when the kids are gone you still have that house as an asset.
Of course this is not true if you rent.
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