Having children not so expensive after all
March 24th 2009 01:55
You’ve all heard the saying – it costs $10,000 a year to raise a child. With tuition fees, school books, school uniforms, allowances, extra curricular activities, additional costs on electricity, water, gas, groceries...
But is this figure accurate?
Associate Professor of Economics and Finance at Curtin University of Technology, Michael Dockery, disagrees. "People now believe they'll be millions of dollars out of pocket if they have children," he says. "It's nonsense."
Based on his study of 3168 couples, when comparing the net wealth of parents and couples without children, the parents were only marginally ‘worse off’ with an additional expense of $1300 per child per year – a far cry from the original figure of $10,000.
I remember the ‘91-‘92 recession. After my dad got laid, our family of six relied on my mother’s gross annual income of $30,000 and Austudy. Granted, eating out was a rarity, reserved for birthdays (and even then, it was to Pizza Hut All You Can Eat Bar), we made a point of only buying No Name brands at Franklins, lunches were simple cheese sandwiches, and new clothes came in the form of second-hands from cousin Michael. Even then, there is no way our family could have survived if the cost of raising each child was, say $5000 (taking into account the cost of living back then was half of what it is now).
On the other hand, I don’t think it’s as little as $1300 a year.
Admittedly, I was apprehensive about the costs of raising children when I was pregnant and almost worried myself sick when talk of the economic crisis started surfacing. But as parents with children have told me and what I learnt from my mum, where it concerns children, priorities change and you simply make do – whether they cost $10,000 or $1,300 a year.
What do you think? Were the costs of having children as high you thought?
But is this figure accurate?
Associate Professor of Economics and Finance at Curtin University of Technology, Michael Dockery, disagrees. "People now believe they'll be millions of dollars out of pocket if they have children," he says. "It's nonsense."
Based on his study of 3168 couples, when comparing the net wealth of parents and couples without children, the parents were only marginally ‘worse off’ with an additional expense of $1300 per child per year – a far cry from the original figure of $10,000.
I remember the ‘91-‘92 recession. After my dad got laid, our family of six relied on my mother’s gross annual income of $30,000 and Austudy. Granted, eating out was a rarity, reserved for birthdays (and even then, it was to Pizza Hut All You Can Eat Bar), we made a point of only buying No Name brands at Franklins, lunches were simple cheese sandwiches, and new clothes came in the form of second-hands from cousin Michael. Even then, there is no way our family could have survived if the cost of raising each child was, say $5000 (taking into account the cost of living back then was half of what it is now).
On the other hand, I don’t think it’s as little as $1300 a year.
Admittedly, I was apprehensive about the costs of raising children when I was pregnant and almost worried myself sick when talk of the economic crisis started surfacing. But as parents with children have told me and what I learnt from my mum, where it concerns children, priorities change and you simply make do – whether they cost $10,000 or $1,300 a year.
What do you think? Were the costs of having children as high you thought?
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Comment by Mr Nice Guy
Pop Culturist
Pop Rock Factory
Sure you can add up all the dentists, electricity, orthodontics, table settings, clothes, educational expenses, bed linen, toys, outings, haircuts, parties, holidays, sporting goods, club fees, excursiions yaddah yaddah yaddah - which (if you were to believe some so-called academics) would leave those without kids virtual squillionaires.
But we all know that simply doesn't happen either.
Sure it costs - but I wouldn't swap being a parent for quids.
Comment by Morgan Bell
Deep Pencil
Business News
Movie Train
people that drive around in jaguars and spending $300 or haircuts will probably be willing to spend more on childcare, designer childrens clothes, private schools, the latest gadgets, toys, and snack foods etc
if you eat baked beans for dinner and catch the bus, thats what your kids will be doing too
Comment by Waysouth
Given To Gaming
Waysouth
Spanish Honduras
But you can take that too far as well, and it does limit some of the life enhancements you might otherwise have (travel, education, technology). the effect is spread out over the whole family.
But kids are a pretty cool enhancement to life as well!
Comment by Cibbuano
Hunt Famous
Orble Post of the Day
Fat Cult
Techbreak
Comment by KIF