tag:blogger.com,1999:blog-877141313085074936.post153971618024864668..comments2014-01-17T00:48:27.180-05:00Comments on The Umbrella Treasury: Why Is Raising Children So Expensive? What Did My Parents Do Differently?J.W.http://www.blogger.com/profile/00471547517293434732noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-877141313085074936.post-76669376566526340462013-05-24T18:05:25.682-04:002013-05-24T18:05:25.682-04:00We are on the same page, thinking about starting a...We are on the same page, thinking about starting a family soon and weighing all the costs. I feel like there will never be a good time!Cat @ BudgetBlondehttp://www.budgetblonde.comnoreply@blogger.comtag:blogger.com,1999:blog-877141313085074936.post-19607449112806075772013-05-24T17:34:17.221-04:002013-05-24T17:34:17.221-04:00Hi Andrew! Thanks so much for your comment and con...Hi Andrew! Thanks so much for your comment and congrats to you and your wife! What an exciting time for you both! <br /><br />I agree that $750 per child per month is a LOT to save. It would certainly require us to shift our current spending if we wanted to have much left over for "regular" savings. <br /><br />When calculating the $750/month figure, I assumed that my husband and I would cover our (hypothetical) kids' tuition costs for a public four-year institution. Our kids would probably be enrolling in college in 2035 or so. This article (http://money.usnews.com/money/blogs/my-money/2012/07/25/how-much-will-you-need-to-send-your-child-to-college-in-2030)estimated the cost of public school tuition in 2030 at $44,047, since college costs have been growing at 6.5%/year. I inflated $44,047 by 6.5%/year to project a cost in 2035. Assuming tuition continues to increase at 6.5%/year, four years at a public college would cost about $266,000 for a student enrolling in 2035. If my husband and I put away $750/month as soon as the child is born -- and if our money earns 5% interest per year -- we would be close to the $266k mark. <br /><br />One weakness of my calculation is that it assumes we will save the same amount for college, per month, through the first 18 years of a child's life. This approach would be silly, since $750/month is a lot more now than it will be 10 or 15 years from now. In real life, we would invest less than $750/month when the child was young, and increase the amount each year to keep pace with inflation. <br /><br />Thanks again for your comment!J.W.https://www.blogger.com/profile/00471547517293434732noreply@blogger.comtag:blogger.com,1999:blog-877141313085074936.post-39224227332399367632013-05-23T14:25:33.408-04:002013-05-23T14:25:33.408-04:00My wife and I will have a new addition to our fami...My wife and I will have a new addition to our family soon and we live in NYC (well Queens) and I've been thinking about this exact issue. I was born and raised here, so my parents were able to do it, so I should too! Housing is the biggest expense in a high cost of living area. We only have a 1 BR, but that should be okay for another year or two. My wife is planning on staying home with the baby which cuts out day care expenses...but that also cuts out one income. I don't know your income level but $750 per child per month seems like a lot...Andrew@LivingRichCheaplyhttp://www.livingrichcheaply.comnoreply@blogger.comtag:blogger.com,1999:blog-877141313085074936.post-17467916831094572102013-05-23T13:04:52.007-04:002013-05-23T13:04:52.007-04:00You're absolutely right that there are tons of...You're absolutely right that there are tons of ways to save. Once we have kids, I'm sure we'll seek out other options, especially when it comes to child care. Perhaps we'll try to find a church-based child care center, which I imagine would be cheaper. if we're close enough, my in-laws might be willing to help watch the kids one or two days a week (Mr W's mom has told us she'd love to do this...but I wouldn't want to take advantage). And, I could see if I might be able to adjust my work schedule...maybe squeeze 40 hours into a four-day work week so I can stay at home one day with the kids. All good options we could consider when the time comes! J.W.https://www.blogger.com/profile/00471547517293434732noreply@blogger.comtag:blogger.com,1999:blog-877141313085074936.post-43924843769962467692013-05-23T13:01:25.313-04:002013-05-23T13:01:25.313-04:00"Families all face different challenges"..."Families all face different challenges" This is so true! I have to remind myself that, two years ago, we were in a very different place than we are now. Mr. W. was still searching for a full time job, and I had just moved into my current position. Sometimes, I forget how fortunate we've been since then, focusing too much on things that we still haven't accomplished. <br /><br />We would be very willing to seek jobs that aren't 50 miles apart. We love the area where we live, but we're not ruling out moving someplace that makes more sense in terms of time and finances. We've both been watching the job boards to see if anything pops up. Mr. W usually puts out a few job applications every month. J.W.https://www.blogger.com/profile/00471547517293434732noreply@blogger.comtag:blogger.com,1999:blog-877141313085074936.post-89152172012777956932013-05-23T12:11:16.038-04:002013-05-23T12:11:16.038-04:00Kids can be much less expensive than statistics al...Kids can be much less expensive than statistics always seem to report. There are a ton of ways to save! Of course, I live in a low cost area so it's easier for me to save. Two kids in full-time daycare only costs me $700 per month.Holly@ClubThriftyhttps://www.blogger.com/profile/16943656467827987350noreply@blogger.comtag:blogger.com,1999:blog-877141313085074936.post-3399842859499261592013-05-23T10:13:57.999-04:002013-05-23T10:13:57.999-04:00I agree that you shouldn't feel like you need ...I agree that you shouldn't feel like you need to compare yourselves to your parents. Families all face different challenges and perhaps your parents spent differently during the time they were married without kids. I don't know that we'll ever feel financially ready to have children. It's not that I fear having children will bankrupt us but that I just don't think there's a magic number that will make us say, okay, let's have kids. That being said, I am confident that when the time comes, we'll be able to adjust our budget and spending accordingly. We like to travel but when the kids come, the thought of flying/driving with them will probably make us want to stay home all the time, lol. <br /><br />I know it's easier said than done but out of curiosity, would you and Mr.W want to move closer to your jobs and find jobs closer to your work? Tina @ My Shiny Pennieshttp://www.myshinypennies.comnoreply@blogger.comtag:blogger.com,1999:blog-877141313085074936.post-86133368879506762602013-05-22T19:27:53.985-04:002013-05-22T19:27:53.985-04:00Mochiandmacarons, I think you make an excellent po...Mochiandmacarons, I think you make an excellent point that we often impose unnecessary expectations on ourselves when it comes to providing for our kids. I'm hoping that we can resist the temptation to feel that we need to "keep up with the Joneses" when it comes to raising our kids -- especially regarding things like iPads! (I'm a bit of a Luddite, to be honest. We finally upgraded our old computer after SEVEN years). J.W.https://www.blogger.com/profile/00471547517293434732noreply@blogger.comtag:blogger.com,1999:blog-877141313085074936.post-2143761647856069172013-05-22T19:10:53.430-04:002013-05-22T19:10:53.430-04:00I feel perfectly ready to have kids financially. I...I feel perfectly ready to have kids financially. I think we put a lot of expectations on ourselves and on our kids to spend and have certain things, when in fact they're absolutely unnecessary.<br /><br />It's one thing to give your kid an iPad because you want to as a gift, it's wholly another to call it a "necessary expense for the wellbeing of them as they're growing up in a tech-oriented world". *cue rolling of eyes*<br /><br />I am definitely telling all my kids that I am NOT paying for their education, so that they don't expect any money from me and will have to figure out if it's worth it for them financially. <br /><br />No one paid for me, so I guess I don't have that feeling of obligation to pay for my kids, but I'm also seeing that they will value their education more if they have to shell out for it themselves.save. spend. splurge.https://www.blogger.com/profile/05916225832007707414noreply@blogger.com