You missed my point entirely. I'll try to explain again.
The child-rearing costs cited in your article are not based on "average" incomes or "average" expenses at all. They were taken from households that earn between $59,410 to $102,870 a year.
The average household did not earn any where near $59,410 to $102,870 a year no matter what sampling brackets the USDA used. Consequently, the income range you used to support child rearing costs does not give an accurate idea of how most people live or the amount of money actually spent to raise children.
To get valid specs, the USDA should survey households with average incomes. Instead they weighted their data towards those who make considerably more.
Great lessons in life! Sadly, we have to learn it the hard way. Among the lessons you enumerated, the habit of saving and investing is the closest in my heart. Now that we have achieved both, we see to it that we maintain them, if not increase them.
some years ago I read this idea about new parents. From day one a child is born, put $50 in their Roth or other investment vehicular. Do all index funds. Each month add $50. Stop when the child turns 18. By fifty or so they should have about $750,000 in the account. I know their are variable and market fluctuations, but I think it is a good, Doable , idea.
I dont do it enough to help out a food bank BUT...I will buy 20 of an item. I have 4 grown children, retired parents and my own household. We can use 20 of an item within 2 or 3 months.
One thing I did do....when my parents retired and while they were still getting their money straight from SS....I got about 600 cans of dog food for them. when the dogs dies, they still used it for the feral cats. They will eat anything. Then I ALSO donated about 600 cans to the humane society.
Two Christmas's ago, I helped out a church run daycare center in the projects. These kids had NOTHING .....so I gave what I could.
True, the numbers cited in the story were for the mid-level incomes. The lower income level of less than $59,410 had lower child expenses. I pointed out the mid-level because it's for a two-person household with two children, and seemed a reasonable pre-tax income for two working adults. The USDA report has much more information and statistics in it than I could get to in the story, and I think it's worth reading by itself.
Thanks for the comments. While I find it funny to hear advice from people without kids on how to raise them, I think your tips are on the mark. Especially funding retirement before college education for a child.
A kid can work, save or get college loans if their parents don't save to get them through college. But coming up with more money in retirement because you spent that extra money on a college fund can be a lot more difficult for a retiree.
Semantics. While it can cost less than the numbers cited by the government, the figures cited are what the average family is spending on their kids. The report breaks it down by family income, with high income families spending much more than low income families.
If you are under 40, you should be planning on having more than $1 mil for retirement. For most people under 40, $1 mil is just going to be a step along the way if you want a comfortable retirement, especially if you are married.
I used to work in the credit card industry and know that pricing is never as transparent as you think. At one time it was relatively easy to work out which was the good deal, but now they are trying harder to squeeze every penny from you and you must really look hard at the terms before signing up.
The dollar values here would not have influenced my choices, even if my husband and I had known them. The financial impact could not outweigh the emotional benefits.
Great to hear that you've developed these good habits Cherleen.
Improving upon them will only help you achieve your goals sooner.
Great observation Charles.
Regular investing in a solid index fund lets you take advantage of the power of compounding to build real wealth over time.
Thanks for sharing Jenny.
I see your point, especially if you have more expenses than the average household.
I buy flour, toilet paper, meat (on clearance), rice, oatmeal and anything else I find for a bargain that we can use!
Thanks for the informative post. I like photography, it's nice to know there are places I can sell my photo's
I looked at the study you cited.
You missed my point entirely. I'll try to explain again.
The child-rearing costs cited in your article are not based on "average" incomes or "average" expenses at all. They were taken from households that earn between $59,410 to $102,870 a year.
According to the Census Bureau, http://www.census.gov/prod/2012pubs/acsbr11-02.pdf, median household, the one smack dab in the middle, income in the US in 2011, was only $50,502.
The average household did not earn any where near $59,410 to $102,870 a year no matter what sampling brackets the USDA used. Consequently, the income range you used to support child rearing costs does not give an accurate idea of how most people live or the amount of money actually spent to raise children.
To get valid specs, the USDA should survey households with average incomes. Instead they weighted their data towards those who make considerably more.
Thanks for including my post as the top post
Great lessons in life! Sadly, we have to learn it the hard way. Among the lessons you enumerated, the habit of saving and investing is the closest in my heart. Now that we have achieved both, we see to it that we maintain them, if not increase them.
Angela:
That's the best point here: The benefits outweigh the costs. It's a simple equation to make.
Glad you enjoyed it. Thanks for commenting:-)
some years ago I read this idea about new parents. From day one a child is born, put $50 in their Roth or other investment vehicular. Do all index funds. Each month add $50. Stop when the child turns 18. By fifty or so they should have about $750,000 in the account. I know their are variable and market fluctuations, but I think it is a good, Doable , idea.
@ Angry Bastard.
I agree. Why not help out others.
I dont do it enough to help out a food bank BUT...I will buy 20 of an item. I have 4 grown children, retired parents and my own household. We can use 20 of an item within 2 or 3 months.
One thing I did do....when my parents retired and while they were still getting their money straight from SS....I got about 600 cans of dog food for them. when the dogs dies, they still used it for the feral cats. They will eat anything. Then I ALSO donated about 600 cans to the humane society.
Two Christmas's ago, I helped out a church run daycare center in the projects. These kids had NOTHING .....so I gave what I could.
Toilet paper, paper towels, eggs, nuts (I put them in the freezer so they don't go bad)
True, the numbers cited in the story were for the mid-level incomes. The lower income level of less than $59,410 had lower child expenses. I pointed out the mid-level because it's for a two-person household with two children, and seemed a reasonable pre-tax income for two working adults. The USDA report has much more information and statistics in it than I could get to in the story, and I think it's worth reading by itself.
Thanks for the comments. While I find it funny to hear advice from people without kids on how to raise them, I think your tips are on the mark. Especially funding retirement before college education for a child.
A kid can work, save or get college loans if their parents don't save to get them through college. But coming up with more money in retirement because you spent that extra money on a college fund can be a lot more difficult for a retiree.
Semantics. While it can cost less than the numbers cited by the government, the figures cited are what the average family is spending on their kids. The report breaks it down by family income, with high income families spending much more than low income families.
we buy in bulk what we know we will use for sure ie dog food, toilet paper, paper towels
I haven't learned how to use an AED, but I'm ok on the others.
Always an honor to be included in this list!
If you are under 40, you should be planning on having more than $1 mil for retirement. For most people under 40, $1 mil is just going to be a step along the way if you want a comfortable retirement, especially if you are married.
I buy popcorn kernels in bulk. They are usually better than what you can buy in small packages at the grocery store, anyway.
We buy paper products like toilet paper and paper towels in bulk. It ends up being way cheaper.
I used to work in the credit card industry and know that pricing is never as transparent as you think. At one time it was relatively easy to work out which was the good deal, but now they are trying harder to squeeze every penny from you and you must really look hard at the terms before signing up.
Excellent list of exercises to choose from. Quite a few I was not aware of.
I find body weight exercises more effective than using weight machines and you can do them anywhere really.
Thanks for sharing Tara.
The dollar values here would not have influenced my choices, even if my husband and I had known them. The financial impact could not outweigh the emotional benefits.
- Angela Wellsmith Find me at angelawellsmith.com