Dozens of local families are spending the new year welcoming a new bundle of joy.
The cost of the average delivery in 2006 is $7000-$11,000. That's nothing compared with the cost of raising a child born today. A piggy bank stuffed with large bills is the perfect gift for any new parent. The government did a recent study that shows a family making $70,000 a year will spend more than $353,000 raising a child to the age of 18. College not included.
Introducing the babies of 2006.
BRIDGETT BUTLER: "This is Christopher DeJanette he was born New Year's Day."
Christopher is like a lot of modern babies both parents work. Maybe that's one reason child care expenses are so high in America.
The average family spends 11% of income on child care and education. In 1960 it was one percent.
BUTLER:"I don't care how much you plan it's still overwhelming."
The cost of raising a child until the age of 18 is about $15,800 a year for families making over $65,000. Just over $10,000 for families making $40-70,000 and about $7500 a year for those making less.
BUTLER: "The biggest thing I didn't realize how much you have to put in a nursery."
Bridgett may be on to something there. Babies come with a lot of stuff. Most parents upgrade their homes when they have a child. That upgrade accounts for the single biggest yearly expense... 33%. So resisting the urge to upgrade can be a big money saver. And trimming the cost of a nursery is huge. Experts suggest going cheap with the decorating ... but for safety reasons not with furniture and car seats.
The second biggest child expense is food. In the teen years try to put kids on a budget ... especially with fast food.
And Christopher might not like it but his parents can save a lot of money buying used cars instead of new. Transportation is usually the third largest expense. Notice we didn't talk college.
"I really want to set up a college fund because i'm putting myself through school for the second time and I know how costly it can be. "
A four year public college will cost Christopher about $130,000.
Maybe one reason his dad couldn't be hear for the interview ... he had to work.
"Yes somebody has to work right now."
To ease any fears about college 60 percent of students attending public university get some type of financial aid.
Even putting 50 bucks a month aside from the time a child is born can add up to a significant amount by the time a child is 18.
Talk to a financial advisor about investments such growth mutual funds and government bonds.
