Here’s How Expensive It Is to Raise a Child

Here’s How Expensive It Is to Raise a Child

Children are absolutely priceless additions to a family; they bring a sense of fulfillment to the parents and bundles of happiness to those who interact with them.

Unfortunately, despite the sense of satisfaction a parent may feel as they watch their child grow and learn, it all comes at a cost and autonomous, families have had to face decidedly high and increasing costs over time.

Monetary and attention costs, maintenance costs (food, clothing, accommodation, care, health, etc.) and of growth (socializing, education, entertainment, culture, etc.) In all cases, costs that grow even in time of recession and with speeds higher than inflation.

And it is certainly not a great consolation to know that the phenomenon is common to all families of developed countries.

Knowing these costs (or emotional investments) is very important because, consciously or not, these costs affect the choice of having (or not) children and, consequently, should constitute the basis for public birth support policies.

Childbirth Costs Are Increasing

To give birth in the United States requires several savings. The cost of delivery in the hospital has tripled since 1996, winning the title of “most expensive” than any other country in the world. A report from Truven Health Analytics, published by the New York Times, leaves no doubt about the expensive costs that a family faces for pregnancy and the birth of a child, and consequent assistance. 

A woman during pregnancy without insurance pays around $ 2,000. This amount includes 12 visits, routine blood, and urine tests, and an ultrasound that will take place around the 20th week. If you want more, you pay up to $ 1000 for each additional test. The vitamins and folic acid to be taken have a total cost of 84 $. 

 

Childbirth Expenses to Expect

A normal birth with a hospital stay of a few hours costs between 9000 and 17ooo $. A cesarean delivery, which has a prolonged hospital stay, costs between $ 14ooo and $ 25,000, and the infant is not included in these fees!

The first care for the newborn is between $ 1,500 and $ 4,000.

Vaginal delivery with no complications: around $ 11,000

Vaginal delivery with complications: around $ 13,000

Cesarean delivery with no complications: around $ 18,500

Cesarean delivery with complications: around $ 22,0001.

The complete package is around $ 30,000 in the case of natural childbirth and goes up to $ 50,000 in the case of cesarean. 

The cost of insurance is very varied. It depends on the coverage you want, the employer, the number of family members, the income. Let’s say it starts from a minimum of $ 115 a month for a single person or $ 590 for a family of 4. Health coverage only: dental care and eye exams are excluded.

The woman works until the day of delivery and is entitled to unpaid leave for up to six weeks.

 

Average Cost to Raise a Child

It is 240 thousand dollars. In the United States, raising a child from birth to 17 costs around $ 233,610. The $ 230,000 figure does not include college but refers to the cost of room decor, food, transportation, clothing, healthcare, education, toys, and computers2. The figure, relating to a child born in 2017, has increased by about 3% compared to that for a child born in 2016. Wages, therefore, risk not keeping up: the average income of a family, in fact, is dropped by about $ 4,000 a year since 2000 and, because of the economic crisis, those who have lost their jobs have often had to settle for a lower salary.

The costs vary primarily based on the income of the family and age of children but also by

heritage, the composition of the family unit, the place of residence, consumption styles, and welfare available.

The main components of the cost of raising a child

  1. Accommodation: which includes rental/mortgage costs, property taxes, maintenance, cleaning, expenses for electricity, gas, water, heating, waste, and furnishings.
  2. Food: expenses for food, non-alcoholic drinks, canteen vouchers, restaurant.
  3. Transport and communications the item includes the depreciation charge for the purchase of the vehicle, fuel, maintenance and repairs, insurance, public transport (including airplanes) telephony landline and mobile and Internet connection
  4. Clothing: purchase, cleaning and repair costs
  5. Health: costs not covered by the public service (ex. dentist, physiotherapy, psychologist, etc.)
  6. Education and care: babysitting expenses, school fees, books, tuition, pre ‐ post-school, canteen school, study trips, PC, etc.
  7. Miscellaneous: includes costs for personal care, pocket money, sports, entertainment, travel, gifts3

On average, the direct costs of maintaining and raising a child to 18 years of age are between 25% and 35%more expenses than a childless couple with the same income. If these costs are added to the indirect ones, it follows that for families, the current economic burdens can be defined as at least discouraging birth rate. Unfortunately, this is one of the most substantial reasons for the birthrate decline in America4.

  1. Lifestyle Daily. “Here’s How Much It Really Costs to Have a Baby” Accessed 17. April 2020. https://www.lifestyledaily.com/?page=index&artid=197&id=L16
  2. Smith, Liz.. “The Average Cost of Raising a Child” 10 Dec. 2019. https://smartasset.com/retirement/the-average-cost-of-raising-a-child
  3. Parker, Tim. “The Cost of Raising a Child in America” 20 May 2019. https://www.investopedia.com/articles/personal-finance/090415/cost-raising-child-america.asp
  4. Fiorillo, Steve. “How Much Does It Cost to Raise a Child in the U.S.?” Updated 18 Febr. 2020. https://www.thestreet.com/personal-finance/cost-to-raise-child-14814957
Finance, Lifestyle