Julia Roberts just gave birth to her third child, Henry Daniel Moder. This is the third child for Roberts and her husband Danny Moder, who are already the proud parents of two-year-old twins Hazel and Phinneaus. I wonder if they know how much it will cost to raise the three children to age 18.
According to the U.S. Department of Agriculture, which calculates such things each year and publishes the results in its annual report “Expenditures on Children by Families,” [http://www.cnpp.usda.gov/Publications/CRC/crc2006.pdf] little Henry will cost the Moder family an additional $289,380. This is on top of the $273,620 each for Hazel and Phinnaeus ($547,240) who will cost slightly less than Henry going forward because they are already two years old. Actually, when you take the family discount into consideration (23% off!), the Moders will be looking at $632,062 in child-rearing costs over the next 18 years.
Then there’s college. If the Moder children all attend private universities when they turn 18, and if college costs continue to rise by about 6% per year, the cost of four years of college for the three children will be $771,248. (Figures based on information and calculators at www.collegeboard.org and www.finaid.com.)
It’s a good thing most prospective parents never do these calculations. Otherwise our species might become extinct. And to be fair, most average, middle-income parents won’t need to spend this much on their kids. If nannies and multiple residences aren’t in the budget, the children certainly won’t suffer.
But it can’t hurt to think about the cost of raising a child before you flush the birth control pills down the toilet. At least give some thought to whether you’ll be relying on one income or two, and whether you’ll need to upgrade your home and car to accommodate a growing family. It just might make sense to wait a bit while you get yourself better established financially. Then when the time is right, welcome that little baby with open arms and do what ever other parent does: provide the best you can with what you have and try not to think about how much that little bundle of joy is going to cost you over the next 22 years.
