Tim the “Financial Planner”

Image source: Getty Images via What to Expect

Many of my friends have asked, "how much does it cost to raise a kid?" Most of us have different shopping behaviors. We might know friends or family with older kids, so we might be recipients of a bunch of hand-me-downs. The answer is mostly: it depends.

In an effort to add some value on this topic, I'll try to layout my costs in a way that others might be able to apply to their own situation. 

Flash Estimate

As of right now, with a 19 month old, our variable costs have increased about 10% since before kid. (I consider fixed costs to be things like rent, internet, and mobile. Variable costs are everything else.) Including childcare (we current have a nanny), my family's total costs have increased by about 33%. 

Inflection Points

Expenses have gradually increased since birth, and according to most of the research I've done, variable costs will continue to increase. My wife breastfed for most of the first year, which helps a lot because formula can be expensive. 

The first inflection point came around four months, which is when we started with solids. We bought and made purees, so we saw a jump in expenses then. The second came when we started cooking table food specifically for him, which began at about seven months. Eventually we ran out of hand-me-downs. We had to start buying more clothes, shoes, and toys after he turned one. It's been a steady growth since then.

I consider childcare a fixed, but limited in duration, cost. Eventually, he's likely to attend public school. At that point, we should have a net savings.

Reach out!

I realize some of this might be vague. I didn't want to put specific dollar amounts, in case I'm lucky enough to have readers from different parts of the country (or world?!). If you want to have a more in depth chat, please feel free to reach out!

Disclaimer

I’m just Tim the Dad. I’m not a qualified, certified, or anything financial professional. Please consult all necessary professionals before taking my advice on anything!