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Oh, my gosh. Over $1 million to raise the twins!!! That’s incredible. Seriously, I can hardly even comprehend that number. You laid everything out really nicely, and I have no problem seeing how you came up with that amount… yet I’m still having a hard time wrapping my head around it. That amount is staggering! And you’re not even living an outlandishly luxurious lifestyle (well, maybe, kind of, sort of).
As you may have guessed, my numbers come nowhere close to that. They aren’t even close to the $233,610 that a CNN article mentioned or even the $174,690 that the USDA is estimating for low-income families in 2017.
I ran the Cost of Raising a Kid calculator, like you did, and it estimated $7,000 per kid, yearly. For 18 years, that’s a total of $126,000, per kid. I still think that’s high.
Here’s what I came up with.
Looking at the categories that the USDA (and you) used to determine expenses, I’ll go through them one by one. Like you did, I’m going to figure this out accounting for all four kids, and then, at the end, divide it by 4. It’s just easier that way.
My family of six lives in a 1,190 square foot home. Our mortgage payment is only $843 a month. I don’t think we’re spending more money than if it was just Mr. Penny and me. Maybe we garner up some extra with the utility and water bills because of the kids (washing cloth diapers, for instance), so I’ll estimate $400 in additional yearly expenses for that. We haven’t spent very much money on furniture for the kids. We co-sleep, so have never needed a crib. We got their regular beds for free from people we know. We just have very little stuff, in general. But, I’ll estimate $100 here, just to be on the safe side. Plus, that will include stuff like toilet paper.
TOTAL HOUSING = $500
We all know how my family is on food support right now, so technically, we’re not really spending any money on food. However, for the sake of this article, if we were to be spending money on groceries, it would add up to around $700 a month. Except for the toddler, everyone in the family eats a similar amount of food, so the kids portion of that comes to $5,040 a year.
TOTAL FOOD = What we actually pay: $500
TOTAL FOOD = What we would pay: $5,040
Child Care / Education
No child care here, so don’t have that to worry about. I am super picky about education though, so we do a combination of homeschooling and sending our kids to a private school. We get pretty substantial scholarships. But, and again, for the sake of this article, let’s say we were paying full price. It would be $4,000 per kid for elementary through junior high. That would be for 5 years, since I don’t put my kids in school until 4th grade (more or less). Then, looking ahead to the high school we plan on sending our kids to, that will cost $7,000 per kid, for 4 years. So, $48,000 per kid, or $192,000 total for all 4 kids. I’m going to prorate that amount over 18 years, like you did. (Our actual amount paid, with scholarships, would be around $12,305 per kid total, or $49,220 for all 4 kids.)
TOTAL EDUCATION = What we actually pay: $2,734
TOTAL EDUCATION = What we would pay: $10,666