Raising a child is a major investment in your future and there are a lot of costs associated with that investment. After all, you’re not just paying for the child’s health and well being, but also the cost of a good education. It’s easy to see why the cost of raising a child can be overwhelming.
The cost of raising a child in the Midwest actually varies from state to state. The Midwest has some very unique factors that affect the cost of raising a child there. For example, Missouri has some of the most expensive housing costs in the country. Housing includes almost 29 percent of the cost of raising a child in the Midwest, especially if you count in the cost of upgrading to a larger house.
Child support payments are also quite high in the Midwest. Urban areas generally have less costly housing, but the cost of raising a child in the Urban Middle Class areas is more than double the cost of raising a child in a lower income family. Family courts are more likely to award non-custodial parents large sums of money. Couples who live together and agree on visitation rights often receive larger payments than couples who do not live together.
When you add in a teenager’s miscellaneous expenses like: housing, cars, clothes, activities, and books, you end up with a grand total of nearly $60,000. That’s a lot of money! Urban families typically spend a few percentage points more in these categories when compared to suburban families. On the other hand, high-income parents usually spend far more than the average family on: housing, food, transportation, and entertainment.
Cost Of Raising Children
Some of the differences in cost of raising children by income can be explained by age. Baby boomers will pay more than Gen X and younger parents when it comes to their children’s expenses. Gen X’ers and younger parents tend to save their money for retirement, college, and living expenses after the birth of the first child. Baby boomers tend to be less materialistic than Gen X and younger parents. Baby boomers tend to get better jobs and earn higher salaries. In addition, Gen X’ers and younger parents save for retirement and buy their own homes.
The second factor that can explain differences in average cost of raising a child by income is location. Raising children in small towns, or rural areas can cost more than urban settings. Urban areas are typically considered to be more expensive because of the cost of living in these areas. In addition, some areas may require a higher level of education for children to thrive.
The third factor that can affect the cost of raising a child by income is miscellaneous expenses. These include transportation costs, clothing, books, and entertainment. The cost of having children may also include the cost of daycare, transportation, and personal hygiene items. Other miscellaneous expenses that parents should consider is the cost of maintaining a home office, the cost of feeding and clothing the child if a single parent is employed, and the cost of insurance for the child. Maintaining consistency with the same lifestyle parents have for the duration of their child’s life can make raising a child more affordable.
Raising a child as a single parent can be very challenging, but it can also be quite rewarding. Statistics show that if both parents work, the chances of the child living in a single parent household decreases. On the other hand, if one parent is not employed, there are many opportunities for the child to be raised in a two parent household. Raising a child as a single parent can also be very challenging since the parents must spend time doing chores, managing household responsibilities, and taking care of the child’s needs.