The numerous articles published here on Everything Finance highlighting ways to save money on child-rearing and advising prospective parents about financial security before planning a baby serve as a useful context. It’s a well-known fact that raising a child demands a substantial financial commitment. But the issue deserves a deeper contemplation. Couples should not merely decide on the timing of having children, but also delve deep into deciding if they want to have them at all. Despite the profound fulfillment of parenthood, today’s precarious economic times marked by turmoil in financial markets and an impending environmental crisis calls for a second thought about the overall wisdom of starting a family.
Like all life-altering decisions, the idea of raising a child deserves a detailed, long-term cost-benefit analysis. Such an evaluation should not only focus on obvious expenses like diapers but also identify and account for any hidden or explicit long-term costs of rearing a child. As per a 2009 USDA’s Center for Nutritional Policy and Promotion study, raising a child in a median-income family presently costs 22% more than it did in 1960. For a two-person family, a staggering average of $286,050 is estimated as the cost of raising a child until the age of 17. This sum only pertains to the expense of a single child and does not include the substantial cost of providing a college education.
The USDA’s figure doesn’t factor in the opportunity costs either. Often seen with new mothers, either there’s a complete withdrawal from the job market or a switch to more flexible, but lower-paying work. This trend is noticed particularly during a child’s early years, leading parents to potentially lose hundreds of thousands more in income.
However, it is relatively unfair to view child-rearing strictly through a financial lens. The bliss of raising a child could outweigh the financial burden involved. Also, there’s a valid argument favoring the delay of parenthood for a few years. This allows time for savings, investments and offers a chance to mature and prepare, ensuring the fulfillment of the parenting journey.
Upon considering the broader ecological cost an average American contributes, there is a compelling argument to not have children or to consider adoption instead. Considering an average American’s carbon footprint is double that of citizens from other countries, reducing population growth contributes to environmental conservation and sustainable resource use. Adoption, in this case, proves to be a smarter utilization of existing resources, providing homes for children who would otherwise face a future of poverty.
In conclusion, the decision to have a child extends beyond emotional readiness or the ticking of biological clocks. In this day and age, deciding to have children could be one of the most expensive decisions you’ll ever make. It’s crucial to weigh the costs seriously.
Author:
Raine Parker, who often writes on accounting topics, welcomes your comments at raine.parker6@gmail.com.
