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RULE #7: 91% of Financial Advisors Say Plan on Spending at Least $10K/year per child

Dec. 9, 2013
Personal Finance
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You’ve just survived Black Friday and finished shopping for all the people in your life. Your relatives keep asking, when is it your turn to have kids? Maybe you’ve recently married, or have just started thinking about parenthood. You decide to start building that future family into your financial plan. But how much does a kid cost?

NerdWallet surveyed 100 financial advisors to get the details:

  • 100% agreed that it would be at least $5,000 a year
  • 91% said it would cost at least $10,000 a year
  • 66% said to plan on shelling out at least $15,000 a year

1. Think about all the variables that go into raising a child:

“This question has a lot to do with regional expense variation in childcare, food, transportation and housing. Not to mention your current options for health insurance, choice of public or private education, childcare vs. opportunity cost of foregone wages, etc.” – Jeffrey Cortright, CFP ®

2.   How much you make largely drives how much you spend on child-rearing:

“It’s tied to your income. The more you make, the more you’ll spend raising your children” – Judy McNary, CFP ®

3. Stop focusing on the dollars. Think about the values

“Your responsibility can’t be measured in dollars, this becomes clearer as you grow as parents” – Ken Stanley, PFS

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