Still, I think it’s a worthwhile exercise to evaluate what the effect of procreation on eventual financial independence might actually be. After all, kids aren’t free.
– Food. Humans need it.– Shelter. Plan on one or more extra bedrooms and an extra bath.– Clothing. Babies and toddlers seem content without it, but they all need it.
On the low end, for the frugal family, we’ll say raising the first child costs you an average of $5,000 a year, and additional children cost $4,000 apiece.
The moderate spenders will be a more typical middle class expenditure of about $9,000 per year for the first child, and $7,000 per year for each additional child.
We also have to consider the fact that there is an opportunity cost to money spent in the first few years of life compared to the sum we drop on the high school graduation parties.