Analysis: It costs more than $300,000 to raise a child from birth to age 17
NORTH TEXAS (CBSDFW.COM) - It now costs more than $300,000 to raise a child from birth to age 17, according to a new analysis from the Brookings Institution.
The biggest expense for parents is housing, followed by food, childcare, and education.
It's not surprising the cost is increasing since inflation has made almost everything more expensive.
"It's really taking a toll on families who are working really hard to make ends meet," said Kathryn Arnold, the CEO of Pathfinders, a North Texas non-profit that helps families achieve their financial goals through coaching and asset building.
Arnold said it starts with taking inventory of the money coming in and going out.
"You can do it," she said. "You can take control of your finances… Where can you cut things in your budget? And often those things, particularly right now as costs are rising, those things can be going out to eat."
Maybe that also includes teaming up with another family for carpool or childcare, or first improving your credit score. Arnold says there's no one-size-fits-all solution for creating your family's budget.
"It takes discipline, commitment, and motivation to follow a spending plan so that you can achieve your financial goals," she said.
If your financial goals include sending your kid to college, that will be an added expense on top of that $310,000 it costs to raise a child from birth to 17 years.
"So I really encourage everybody to take a look at a 529 savings plan because you can have your relatives, instead of giving gifts on an annual basis for birthdays or holidays, have them contribute to this plan," said Cathy Dewitt Dunn, the CEO of Dewitt & Dunn Financial Services.
Dunn said you should also factor your own retirement goals into your budget. Your child can take out loans for things like college, but there are no loans for retirement.