Marvelous Girl Has Moved!

Poor economy makes parenting pricier

Posted on: June 30, 2009

Photo by mailsparky

Photo by mailsparky

This year, 4.3 million babies will be born in the United States, representing a 0.4 percent decline from 2008.  While recessions typically lead to fewer birth rates, the latest research from Los Angeles-based IBISWorld shows that not only does parenting get pricier with time, but the impact of current economic conditions will further exacerbate the financial commitment.

“We can expect to see a surge in the boomerang generation [ages 18-24] returning home and continuing financial dependency on parents due to a scarce and competitive job market,” said Toon van Beeck, senior analyst at IBISWorld. “This phenomenon has become more apparent in recent years, with higher costs in tuition and rent making transitioning into adulthood increasingly difficult. Thanks to the recession, many parents will get prolonged time with their kids until the graduate’s debt is paid off or market conditions improve.”

From the moment of conception to age 18, the average cost of raising a child is about $227,862—which translates to an average cost of $12,658 a year.  A household yielding an annual income of less than $45,000 will spend roughly $156,469 on their child until they turn 18.  Incomes between $45,000 and $75,000 spend $214,829, while households earning $75,000 and above splurge over $312,286 by the time their teen graduate’s high school. Afterwards, parents can expect to shell out for college tuition, along with additional financial burdens induced by a stagnant economy.

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