Parents know having a baby is a chunk of change.
They price out strollers, high chairs and cribs and if they’re lucky, they get some of these items and a bonus diaper cake at the baby shower.
So of course they know. But do first-time parents really know how expensive having a baby is?
Let’s put it his way, if parents were playing on the Price is Right, they could only win if the other player overbid and busted.
Parents seriously underestimate the cost of having a baby, according to a recent Nerdwallet survey.
Baby’s first year
The survey found that 54 percent of parents estimated the first year of a child’s life will cost about $5,000.
The more realistic estimate, according to the personal finance site, is between $20,000 to $50,000 in overall expenses. The overall expenses include food, health care costs, housing, health insurance and child care costs, but did not include college except on the higher end of the estimate.
Of the parents surveyed, about 30 percent had no money saved up before the baby was born.
The birth to 17-years-old cost
Until that child turns 17, the U.S. Department of Agriculture estimates that parents will spend about $233,610 raising that child.
That figure looked at raising a child who was born in the year 2015 to a married, middle-income couple. Families with lower incomes are expected to spend $174,690. Families with higher incomes are expected to spend $372,210.
The figure did not include college costs.
Say goodbye to all of your money
So parents, you may want to think about putting a little more money aside to raise a child. Unless you are one of the few who already knew kids could cost you a cool half million dollars. No big deal.
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