Parents do not view children like an expense like they would a mortgage or car payment. The truth is that most children by the time they are 18 cost more than some houses and nearly all non-luxury vehicles. Studies done have shown that in the first year it costs around $20,000 to raise one child; which is over $1,500 monthly. Most people underestimate the cost thinking it will only cost a few hundred dollars monthly. Food, formula, diapers, and medical expenses add up quickly over the course of time.
By the time that your child turns 18 the average cost is nearly a quarter of a million dollars. This does not count college expenses if you plan to cover these for your child as well; some majors such as medical school or the cost of law school can be pretty horrendous. Including things like private schooling can make that already gigantic number increase even more.
The expense that comes with having children that tends to cause costs to skyrocket is that of house. One or two children will require more rooms in the home which will incur a cost on a monthly basis. The larger the home or apartment the more it will also costs to heat or cool your residence.
Childcare costs can be extremely difficult for those on a limited budget to afford. Depending on the daycare it could cost up to $20,000 or more with some childcare businesses charging more than others. Nannies might be the better option for people with multiple children. A daycare is going to charge per child while a nanny is likely to charge a fixed rate hourly or per week.
Food is going to be an expense as well with 1-year old children costing over $100 per month. Teenage boys can eat a family into financial ruin if the right food purchases are not made regarding costs of good purchased.
Cost of living varies immensely across the country with some cities requiring high income numbers for both parents to even consider having children. Take the time to look at how a small move could impact monthly expenses in enormous ways. Parents that are together and both work have a huge advantage. The sharing of expenses when compared to single parent households makes it far easier to thrive financially.
As you can see there are going to be expenses higher than you would imagine to raise a child. Growing a family can be an incredible experience, make sure you are financially ready for your new addition!