New Study Reveals Child Care Costs Skyrocket in New Millennium

Oct 9, 2019 by

Money saving for kids, family financial wealth management concept : Dollar or cash in hemp bags or burlap sacks and a white paper cut (dad, mom and son) on wood balance scale. Green nature background.

Millennials’ approach to adulthood looks a lot different than it did for earlier generations: they’re living with their parents longer and put off buying homes, getting married, and having kids. The reason for those delays is likely related to finances as all of those milestones cost a lot of money. Raising a child, for example, costs about $30,000 more today than it did in the 1960s after adjusting for inflation (and that’s doesn’t even include the cost of college or expenses related to having an adult child live with you) according to a new study from Clever Real Estate

A large proportion of that increase is due to large growth in the cost of childcare and education (1175%) and healthcare (155%). On average, parents spend about 10% of their income on childcare and nursery costs; which is much higher than the 7% considered affordable by the U.S. government. That, along with the rising healthcare costs, have possibly caused parents to pull back on spending in other areas as they’re spending less on food and clothing now than parents from older generations, including housing. Overall, millennials’ tendency to delay parenthood might be a smart decision considering most of those inflated costs are typically larger earlier in children’s lives. 

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