The price is right

Raising a child in the U.S.? That’ll be half a million dollars, please

GEOFF CADDICK/AFP/Getty Images

For the first time in seven years, the U.S. birthrate is going up — but so is the price of actually raising those children. According to research by Goldman Sachs, American families spend about one trillion dollars on their children every single year, and millennial moms (those born between 1980 and 2000 — 90 percent of new moms now) are spending a whole lot more than the generations before them. The average family will spend 16 percent of pretax income on a baby, which results in  $304,000 in cumulative spending per child through age 17, most of that on housing and food. But the bill starts ticking up drastically once a child goes to college. It now costs an average $18,943 a year for public college tuition, room, and board (up from $10,535 a year in 1995). At this pace, “Millennial parents can expect their newborn’s college education to be $205k in future dollars,” according to Goldman, which means millennial families will be be paying half a million dollars over the course of each child’s life. No wonder this generation is delaying the decision to have children more than any other generation before them.

Read the full story at Quartz.

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