Will Millennials Be Able to Afford to Raise Children?

“How will I ever be able to afford to raise a child?” This question has been on the mind of many Millennials (including my own) recently. Recent reports of what it costs to raise a child are filling us with panic, especially since we know that it’ll be years before we start families (when the cost will be even greater).

Redfin says that Baby’s first year alone costs about $26,000, and CNN Money reports that it costs $241,080 to raise a kid from birth to age 18. That doesn’t even include the cost of college!

There are many good reasons for these numbers to put us into this premature panic. The cost of living has gone up since we were born in the 80s and 90s. We’ve seen our families go through the economic recession while many of us were in college and watching our tuition rise year after year. Because of this, many of us graduated with tens (even hundreds) of thousands of dollars in student loans and hunted for jobs during a recession. It’s difficult to make ends meet for just one person, so it’s no wonder the thought of having enough money to afford a good life for a child makes us anxious.

A few friends of mine (including my awesome friend Melanie who did the CNN Money study) have calculated how much they think they need to make and save each year to be able to afford a child. However, knowing that number and being able to save it are two very different things. Who knows if it’ll be possible to actually save up that much based on current financial commitments. I’m very eager to see how financial stress will impact the next generation of families. Will knowing these mega costs make Millennials create smaller families than our parents and grandparents made?

Millennial moms, how much influence has money had in your family planning?

Image: Woman with piggy bank via Shutterstock

 

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    On August 27, 2013 at 6:23 am

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  4. [...] I learned from my editor in an article she wrote a few months ago called Will Millennials Be Able To Afford Children?, I found out that not even counting the cost of college, it costs around $240,000 to raise a child [...]