Posts Tagged ‘ family finances ’

Whoa! The Cost of Raising a Child Today Is More Than…

Monday, August 18th, 2014

Cost of Raising a ChildBetween diapers and day care, costs can really add up when it comes to providing for your new baby. In fact, by the time your bundle of joy hits 18 you may end up spending more than $245,000.

New data from the U.S. Department of Agriculture shows that parents in a middle income group who had a baby in 2013 can expect to spend between $12,800 and $14,970 annually, which averages to be about $245,000 for 18 years. It’s a number that’s up nearly 2% from last year’s figure, CNN Money reports.

The research accounted for a range of expenses from housing to health care, but did not include the potential cost of college in its estimates. Yikes! But because these numbers are just averages, the results did show that families living in the urban South and rural areas had the lowest expenses, while families living in the urban Northeast had the highest.

“Having a child is an exciting but scary step, and money can be a big part of that worry,” financial planner Matt Becker, founder of the blog Mom and Dad Money, told “I wouldn’t dive in without considering the financial consequences, but I also wouldn’t let them scare you off.”

If you’re expecting, take our family finance crash course and then quiz yourself on your family finance IQ.

How to Buy Baby Diapers on a Budget
How to Buy Baby Diapers on a Budget
How to Buy Baby Diapers on a Budget

Photo of child courtesy of Shutterstock.

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Autism Can Cost Families $2 Million Over a Lifetime

Wednesday, June 11th, 2014

The lifetime cost of supporting someone with an autism spectrum disorder (ASD) can exceed $2 million, according to a new study published in the journal JAMA Pediatrics.  More from The Huffington Post:

The study, published in JAMA Pediatrics on Monday and funded by the nonprofit Autism Speaks, suggests that autism’s financial toll on individuals, families and society as a whole is “much higher than previously suggested,” its authors write, and includes direct medical, educational and residential costs, as well as indirect costs such as lost wages.

“We took all of the data we could find that had been published on costs and synthesized it to come up with an estimate,” researcher David Mandell, director of the Center for Mental Health Policy and Services Research at the University of Pennsylvania, told The Huffington Post.

“The lifetime cost of individuals with ASD and no intellectual disabilities was $1.4 million — and that’s in addition to the costs that would accrue with a typically-developing child,” Mandell said. “It’s $2.4 million for individuals with intellectual disabilities.” (According to estimates cited in the report, between 40 and 60 percent of people with autism spectrum disorders also have an intellectual disability, characterized by limitations in intellectual function and adaptive behaviors, including social and practical skills.)

On average, the cost for children with autism and an intellectual disability in the U.S. was more than $107,800 per year up to age 5, and roughly $85,600 per year between ages 6 and 17. Among children with no diagnosed intellectual disabilities, the associated costs were lower: approximately $63,290 per year for those 5 and under, and $52,205 per year for those between 6 and 17.

The top average annual cost was special education, followed by parents’ productivity losses and medical expenses, including inpatient, outpatient, emergency, home health care, pharmacy and out-of-pocket costs.

“I was surprised that the second-highest cost in childhood was lost wages for parents leaving work to care for children with autism,” said Mandell. “Normally, when we look at expenses, we’re looking at system-level expenses, education costs … We’re so rarely looking at more indirect costs.”

Image: Money, via Shutterstock

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Cost of Raising a Child: $241,080, Not Including College

Friday, August 16th, 2013

The average American family will spend more than $240,000 to raise a single child for 18 years, according to a new report released by the US Department of Agriculture.  The costs of day care, food, transportation, clothing, and education are climbing, having risen 3 percent since 2011, and the new numbers don’t even reflect the cost of college.  CNN Money reports on the finding, which is worrying to families who are continuing to struggle in economically tenuous times:

At the same time, wages aren’t keeping up. The country’s median annual household income has fallen by more than $4,000 since 2000, after adjusting for inflation, and many of the jobs lost during the recent recession have been replaced with lower-wage positions.

The USDA’s latest estimates include expenses for housing, food, transportation, clothing, health care, education and child care, as well as miscellaneous expenses, such as toys and computers.

The biggest price tag is for families in the urban Northeast earning $105,360 or more. They will spend $446,100, much more than the national average, according to the report. Meanwhile, families earning less than $61,590 a year in rural areas will spend the least, at $143,160.

While expenses in all categories rose in 2012, health care, education and child care spending increased the most.

Health care spending made up around $20,000, or around 8%, of the USDA’s estimated child-rearing expenses for a child born in 2012. Meanwhile, child care and education expenses represented nearly 18% of the total costs for middle-income parents.

Since 2000, the cost of child care has increased twice as fast as the median income of families with children, according to the most recent report from Child Care Aware of America. In 2011, the average cost of full-time center-based care for an infant ranged from about $4,600 a year in Mississippi to more than $15,000 in Massachusetts.

“Many families are priced out of licensed child care services,” said Lynette Fraga, executive director of the nonprofit group. “If they are priced out, then the health and safety of those children are at risk.”

Image: Money, via Shutterstock


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Families, States, Insurance Companies Wrestle with Autism’s Costs

Thursday, April 4th, 2013

As health care costs–and diagnoses of autism spectrum disorders (ASD)–rise, families find themselves faced with mounting costs and not much help as they would like.  More from ABC News about how advocates are lobbying states to mandate that insurance companies cover autism therapies and other costs:

Thirty-two states have required state-regulated health insurance plans to cover autism, according to Autism Speaks, an organization that advocates for families.

Autism spectrum disorders are developmental disabilities that can cause significant social, communication and behavioral challenges, according to the Centers for Disease Control and Prevention (CDC). Treatments include behavioral, occupational and speech therapy, and experts say early intervention is critical.

Bills to mandate coverage for care are moving along with success in Hawaii, Minnesota and Nebraska, but Autism Speaks is pushing for a law in all 50 states and calling on Congress to mandate all companies not under state jurisdiction to authorize care.

Many companies who self-insure, like Microsoft and Oracle, have already voluntarily done so, according to Autism Speaks spokesman Rick Remington.

“We are calling on the president for a national plan for autism,” he said. “Prevalence is on the rise, and we are calling out the government to say enough is enough.”

Matt Bengtzen, who works as a manager in local government in Salt Lake City, has two sons with autism, aged 13 and 10.

“The diagnosis was a struggle for us because it was not covered by insurance,” he said. “And I have very good insurance.”

“We actually have been pretty fortunate, because our children are on the more functional side of the autism spectrum,” said Bengtzen, 37. “It’s been difficult, but not devastating.”

Still, the family has spent at least $10,000 out of pocket on each child so far.

Image: Health care costs, via Shutterstock

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Child Care Costs Rising, Census Data Shows

Thursday, April 4th, 2013

The costs of child care have nearly doubled in the last 25 years, according to a new report based on census data.  More from a release by the U.S. Census Bureau:

“Perhaps the most critical decision parents make in balancing their work and home life is choosing the type of care to provide for their children while they work,” said report author Lynda Laughlin, a family demographer in the Census Bureau’s Fertility and Family Statistics Branch. “Child care arrangements and the financial burden they impose on families are important issues for policymakers and anyone concerned about the welfare of children. This report is unique in that it is not only the sole study from the Census Bureau on this topic, but also provides a consistent time-series on trends going back to the mid-1980s.”

Families with an employed mother and children younger than 15 (see chart) paid an average of $143 per week for child care in 2011, up from $84 in 1985 (in constant 2011 dollars).

The median wage for a full-time child care worker did not increase over the last 20 years. The median wage for a child care worker in 2011 was $19,098, not different from $19,680 in 1990 (in constant 2011 dollars).

The percent of families who reported they made a cash payment for child care for at least one of their children declined from 42 percent to 32 percent between 1997 and 2011.

Since 1997, the use of organized day care centers and father-provided care for preschoolers has increased, while the proportion of children cared for by nonrelatives in the provider’s home has declined. (There was a change in the data collection methodology in the mid-1990s; 1997 was the first year of data that was affected by this change.)

Image: Girl in day care, via Shutterstock

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