Making sure that your kids are well taken care of and have the best possible opportunities and education is, of course, what all parents want, but how expensive is it, and what are parents spending their money on? It is not just basic expenses like food, clothing, and school fees. They are also spending on other things too. How expensive can having a kid be in real terms?
As kids get older, they have to be educated, and that can have a steep price tag. The fact is parents come in all shapes, sizes, and income brackets too. For some, spending on a private education may be the norm while for others, the challenge is keeping the proverbial wolf from the door and a roof over their heads. The national average for private elementary school in 2017/ 2018 is just over $9,200. A private high school education can set you back over $14,000 every year.
When it comes to sports, some are more expensive than others due to equipment costs and coaching or lessons. According to a TD Ameritrade survey, almost 20% of American families spend more than $12,000 per child annually on youth sports. That is an extra expense of $1,000 every month per kid and is almost the same amount as the average American household’s monthly mortgage payment!
Teaching kids the value of money is important, as according to research, we have begun forming our financial habits by the age of seven. In the United States, the average amount given to a child between the age of four and fourteen is $454, and that does not include any birthday cash gifts.
No matter how much you earn, you will want to do the best for your kids. Making sure that you have enough set aside to take care of your little bundles of joy is essential, as no matter what, they are going to cost money. It is not just diapers that you have to be thinking about. Save now so that when you have kids, you can afford to give them the best you can.
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