Do you struggle with finances? space you contemplating going back to work or seek a pay raise to assist pay the bills? carry out you miss those pre-kids’ days through expendable income?

I understand a number of families in this situation. If you’re like the median Bay Area household that has actually two kids, you’ll require a million extra dollars (post taxes) to get them v college.

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A report by the united state Department of agriculture (USDA) freshly made headlines. The report is an yearly report created by the USDA on the prices of raising children. If the headlines focused on the national averages, these can be a little bit misleading for civilization who live in the only Area and who are high earners.

Furthermore, the examine doesn’t include the price of sending youngsters to college, or the value of parents’ time, i beg your pardon can often exceed the straight costs. This article attempts to melted some light on much more relevant numbers for the only Area.

Expenses through age 17

The first component the the price of elevating a son is the expense of the living costs through age 17, as extended in the USDA report. While the national median for a middle-income family members totals $241,000, the complete for a greater earner family in the city West is closer come $425,000. The category of costs that space the biggest vehicle drivers of this distinction are housing and also child care/education, as you might expect. Housing was an ext than double for high earners in the urban West, largely as result of the greater cost the housing. Kid care and also education was likewise a bit more than double the nationwide average, most likely due to higher costs, but likewise a higher propensity to pay because that child care so the parents deserve to work.



The USDA study is based upon two-parent families with 2 children. However, expenses differ depending on the number of children and variety of parents. In two-parent family members with only one child, prices tend to be 25% higher. With three children, parents tend to spend 22% less per child, likely because of economies the scale. In single-parent family members with two children, over there is a tendency to invest 3% much less on the enlarge child. However, the expenses for a single-parent, one-child family members are 29% greater than in a two-child single-parent family.

The expense of College

The second major component of elevating a child that was not covered by the USDA report is the cost of college. The nationwide average total cost for a windy 4-year university in-state student was approximated to be $22,000 because that the 2012-2013 institution year. This cost includes tuition, room & board, books & supplies, transportation and also other. This compares to $43,000 because that a student at a exclusive 4-year college. Then there space schools favor Stanford, which calculation the expense to attend at $60,000. It is worth noting that institutions with big endowments offer an extensive financial aid to their students, for this reason the net price to attend might be considerably lower.

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Adding It every Up

Adding the all with each other for families in the only Area, the cost to progressive a son in a two-child, two-parent household ranges in between $500,000 and also $600,000 per child, relying on whether girlfriend send them to public or personal college. Fortunately, there are numerous benefits to having kids in ours lives, however the magnitude of the expense way it is worth acquisition seriously things choose planning for our kids’ education and also how we setup to pay because that other significant expenses favor housing and child care.