Do you consider children expenses or investments?
The cost of raising a child from birth to age 18 for a middle-income, two-parent family averaged $226,920 in 2010 (not including college), according to the U.S. Department of Agriculture.Add college into the mix, and you’re looking at a very steep price tag. Wouldn’t you want some great rate of return on this very expensive investment?
Expense or investment?
In some cultures, it is expected that children will take care of their parents. There is very little emphasis on retirement savings because it is simply assumed that children will financially support their parents through their old age.
This is definitely seen in my father’s side of the family. My father is the oldest of seven children. Now that my grandfather is slowly fading away, the talk has started about what will happen to my grandmother. Whispers have suggested that she wants to move in with my parents. This, of course, does not sit well with my mother.
My mother has the idea that parents choose to give birth to their children, and they are responsible for supporting them financially.
It is a pretty big financial burden to expect children to support their parents financially especially when children are usually just beginning their careers at the age that parents are choosing to retire. With parents waiting even longer to have children (ahem, like me!), parents may be expected to financially help their children even longer than anticipated.
The cost of raising a kid
Raising a child starts from even before the baby is born. There is so much to save for a baby–they just need so much darn stuff! After infancy is daycare–that’s an enormous cost that families have to pay. The list of expenses for raising a child are never ending.
But at what point, do you stop supporting them and hope they go on their happy financial way?
Many experts tout the importance of teaching children savvy financial planning skills. Otherwise, you find yourself with children who haven’t learned to be self-sufficient.
I got my first job at 16, as soon as I could get a work permit. I loved the idea of making my own money and spending it whichever way I chose. Pretty soon, I became responsible for my own clothes, my own entertainment and any other items I wanted to purchase for myself.
SO what it is the return of investment?
Obviously, there are some things that money can’t buy.
Since my husband and I aren’t ready for kids, we got a dog. A pet is one of those things that are pretty much all expense with no monetary return of investment.
However, I love our dog dearly and honestly couldn’t imagine our life without him. He brings us so much joy and happiness.
As people who are very interested in financial planning and security, we often forget that money is not the only thing important in life. Yes, children are a huge expense but–from what I’m told–they often bring unparalleled levels of happiness as well.
And perhaps that’s the biggest return on investment you can possibly make.
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