Last week in Part 1, we looked at 5 ways in which kids really aren't that expensive.  This week our 5 areas in Part 2 cover Housing, Transportation, Vacations, Day Care, and Clothing.  Still think kids are expensive?  Read on.

BC

Housing:

If there is one area where I will concede that having kids leads to an increase in household spending, it has to be housing. While it is true that you will need larger quarters to accomodate your new guests, the true marginal costs of providing shelter for one more child is vastly overblown. There is no arguing that, once the third kid bangs on your door, you'll have to give up that stylish urban two bedroom condo. But many parents would have you believe that you suddenly need to acquire a five bedroom McMansion because their kids couldn't possibly share a room.  Kids don't care if they spill their milk in a kitchen that would make Martha Stewart druel with envy. It's not the little rug rats that clamor for two separate family rooms and a dining room that can host a banquet. If the size of your house is putting you in the poor house, don't blame it on the kids. What kids need is a nice house in a family neighborhood with an address in a good school district. They'd rather have a 10,000 foot backyard than a 5,000 square foot mansion.

Transportation:

How many parents complain about the high cost of buying a third set of wheels so Jane can drive to high school in style. And that's not even counting the king's ransom you have to fork over for the additional insurance premiums. If the kid insists on a late model car, it could easily set you back $10,000 to $20,000. Guess what?  Jane doesn't need a car and if she does, let her walk or work to pay for it - all of it.  If there is one way to control the cost of insurance for the kid's new car, it's to buy a used car and eliminate the expense of collison coverage. If your child needs one to commute to work, buy them a $2000 jalopy and have them pay you back after they pick up their part of the car insurance bill. And just to impress upon them the wisdom of budgeting, encourage them to put a little bit of money aside for the cost of insurance, maintenance and upkeep. Aside from anything else, it'll make them safer drivers.  It's absolutely amazing how people, even sixteen year old people, will take care of property they paid for by toiling at a minimum wage job.

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ducklady  - Housing |2010-07-17 06:00:31 When did the rules change so each kid needs his/her OWN room??? What nonsense. My husband shared with his three brothers (2 sets of bunk beds) and I shared with my two sisters. No big deal and we learned valuable skills of co-operation and negotiation. Single dorms rooms were almost unheard of 30 years ago, now they seem to be standard. This is wasteful, costly and is another lost opportunity to develop the skills necessary for living in community. No wonder so many people have an unattractive sense of entitlement. What else could you develop when you grow up in the splendid isolation of your own little fiefdom? Reply 0 0

haverwench  - Some of these expenses are real |2010-06-16 12:32:51 "If the size of your house is putting you in the poor house, don't blame it on the kids. What kids need is a nice house in a family neighborhood with an address in a good school district." Yep, and that's what makes a house expensive. It's not the size, it's the location. Parents pay a hefty premium to live in an area with good schools. Elizabeth Warren and Amelia Tyagi get into this in _The Two-Income Trap_. See http://bostonreview.net/BR30.5/warrentyagi.php. "How many parents complain about the high cost of buying a third set of wheels so Jane can drive to high school in style." Never mind that--what about the cost of trading in your modest compact car for something that will accommodate three car seats? "If one of you stays at home, you won't have to pay a dime in day care and you'll have the added benefit of seeing your kids grow." But once the kids are in school and you're ready to go back to work, expect to see your salary reset to a lower level. I agree overall that many people make raising kids out to be more expensive than it needs to be. But I have to concede that some expenses really are unavoidable. Reply 0 0

xyppur  - Clothing and education |2010-06-10 10:20:22 Clothes for prepubescent children are cheap and easily found second hand at great price reductions or free, but by the age of thirteen that begins to change. You can still find cheap clothes, but you'll need to replace garments often as they get worn out rapidly or outgrown. And forget the prom dress, have you seen what a band uniform costs? Kids don't need special gyms to play, but teenagers will have an easier time in adolescence (and in finding college scholarships) if they're active in sports, band, or any of the myriad costly activities with uniforms, equipment, and overnight competitions. The kids themselves help with fundraisers, and once they turn 16 can get a summer job, but high school is full of unexpected costs. Reply 0 0

Omiewon  - Housing |2010-02-09 10:44:53 There does seem to be a big difference between one kid and having 2 or 3. One kid can live in an apartment or condo but that gets tough with a few more. Some townhouse communities have good play areas and there are a lot more kids to play with. Reply 0 0

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