Want The Kids or The Cash ? (Family Dilemma)

family For prospective parents, weighing the decision to have children has not become easier. According to a 2004 survey by the United States Department of Agriculture (USDA), parents who grossed at least $70,200 a year spend an overall $269,520 to raise a child to the age of 18.

In the U.K., the cost of raising a child to the age of 21 outside of costly London is estimated to be about �166,000 (about US$286,000), according to a survey by the Liverpool Victoria Society. The financial dilemma, thus, is similar to many developed countries. If household incomes were limitless, the decision to raise children might be a strictly personal option. In reality, however, the decision to have children is also a financial one. In this article, we’ll provide some food for thought from the financial side of the equation.

No Kids? Why Get Married?
Love and affection aside, marriage provides greater financial stability than going it alone. When both spouses work, all but the most foolhardy of married couples enjoy significantly greater financial benefits than other families. Smart couples leverage marriage to increase income and decrease expenses. Instead of making two rent or mortgage payments, these couples make one. Likewise, most utility bills have a nominal payment that would be higher if the couple was living apart than the incremental increase in living together. The most financially savvy couples live on one income and save the rest. They usually have two employers from which to choose health plans and won’t have to worry about bankruptcy if one income earner is temporarily unemployed.

Economically speaking, the absence of children results in lower fixed expenses. It also results in more money to spend. Regardless of your feelings about children, the bottom line is that you can do a lot of nice things for yourself, your spouse and your finances with the quarter of a million dollars that it takes to raise a child to age 18.

money Conclusion - Kids or No Kids?
Economic reality forces tough choices. The decision to have children is a politically sensitive topic; those who have children abhor the cold economic reality that DINKS factor into their equation, while some DINKS maintain the view that unchecked population growth contributes to environmental strain. In the end, having children is still a deeply personal and challenging choice - just remember to add the financial implications of raising children into the equation. You need to review your personal situation and make the choices that are right for you and your family, whether it will consist of two people or 10.