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FAMILY FINANCES

Price spirals can wreck budgets

August 2, 2008
By Connie Cartmell, ccartmell@mariettatimes.com

With three daughters under 6 years old to feed, clothe and provide with health care, a roof over their heads, transportation and more, Kristi Myers, 23, sometimes feels overwhelmed.

"I'd say that kids are getting more expensive," said Myers, of Marietta. "For me, my youngest girl (age 1) is in pull-ups and she's always pulling them off, which wastes them. I spend lots of money on disposable diapers."

It will come as no surprise to most parents, regardless of economic status, that the cost to raise a child to his or her 18th birthday is on the march upward, according to an annual study recently released by the U.S. Department of Agriculture.

For middle-income families with a child born in 2007, the costs of providing food, shelter, clothing, and other necessities will total $204,060 by the child's 18th birthday.

Since 1960, the cost of providing food decreased from 24 percent to 17 percent of total child-rearing costs, while child care and education expenses increased from 2 percent to 12 percent in four decades.

The report notes income levels, age ranges, categories of household expenses and geographic locations in its analysis. Expenses are highest for families living in the urban west, followed by the urban northeast and urban south.

Families living in the urban midwest and all rural areas have the lowest child-rearing expenses.

In real terms, the report said, the overall cost of raising a child has increased 15 percent from 1960 to 2007.

If tiny Lindsay Elaine Evans, born Wednesday at Marietta Memorial Hospital, had been born in 1960, the cost of raising her to 18 would have been $25,230 instead of $204,060 - or more.

Her proud parents, Susie and Matt Evans of Marietta, also have two more daughters at home, 4 and 2.

"Overall, cost was not a part of our concern when I knew another child was coming," Susie Evans, 41, said. "College savings is a huge deal for us, and that was something we thought about."

Evans said it's beneficial to first plan ahead, by looking down the road and considering major expenses.

"We try to be careful with budgeting in general, but I don't think many people actually consider the cost of raising a child when they get pregnant," she said.

Decades ago, in a young and growing nation, a large number of children in a family was considered ideal. Extra hands on the farm likely meant greater economic success for the family.

As the American agricultural society began to shrink and more people moved from farms to cities and suburbs, family size began to slowly diminish.

Today a family with more than three children is pretty rare.

Kathy Dodrill, local nutritionist and family life expert, said she is getting many more calls from people about budgeting and saving dollars. An Extension educator in family and consumer sciences with the Ohio State University Extension, Washington County, Dodrill teaches classes on food storage and preservation.

"More people than ever before are asking how to grow their own food and a large number of people came to our last seminar on canning and food preservation," she said.

When it comes to trimming the fat from the family budget, Dodrill said much of the challenge is in presentation. Whether it's fewer entertainment dollars, shopping garage sales and thrift shops for back-to-school clothing or a vacation "at home" instead of travel, it's all in the attitude, she said.

"If you present ideas in a positive way, with a good attitude, it works a lot better," she said.

Myers works hard to cut expenses.

"My kids love to go to McDonald's, but that gets expensive and I try to discourage it. Their dad takes them," Myers said.

Clothing for her three girls is not an issue for this mom. Clothes are passed down. She expects as they get older, clothing will become more critical.

"The cost of everything - gas, groceries, utilities - everything is going up," said Kim Sherlock-Drayer of Belpre.

Sherlock-Drayer has three boys, 14, 12 and 10 years old. This week, the family plans to go back-to-school shopping.

"Our first stop will be Goodwill," Sherlock-Drayer said. "There's a new store in Marietta, and I expect we'll find some great things. My older guys are starting to be fashion-conscious so they'll have their eye out for all the name brands."

Extension office assistant program manager Amanda Brooks suggests that parents consider all the free activities Marietta has to offer, especially during the summer months. As long as parents are along, children usually enjoy about any outing, she said.

"It's all about building memories," said Brooks, who has a 2-year-old and another child on the way. "The kids have a great time anywhere - just being with mom and dad is special."

Keith and Melanie Russell of Marietta have been married a year and have made a decision to delay children for several years.

"We're going to have kids, but we want to pay down debt and get a little more stable financially," said Keith Russell, 30. "We want to plan for the future."

Melanie Russell, 23, agrees, saying they made plans to wait even before they married.

"It's not so much the cost of kids; we just are enjoying hanging out together, being able to get up and go when we want," Keith Russell said.

Planning is the single most important thing a couple or family can do to conserve resources, Dodrill said.

"I've heard from people, 'I can't afford to plan.' I say to them, 'You can't afford not to plan,'" she said.

 
 

 

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Article Photos

MITCH CASEY The Marietta Times
Shari and David Bricker, their dog Zeus, and eight of nine children (clockwise from bottom right) Scott, 12, Joel, 11, Samuel, 2 weeks, Andrew, 18, Heidi, 3, John, 6, Ben, 14, and Heather 9, Thursday at their Devola home. Missing from the photo is the couple's oldest, Ross, 20.

 
 
 
 

Fact Box

Categories of household expenditures

Housing - Shelter (mortgage interest, property taxes or rent; maintenance, repairs and insurance), utilities (gas, electricity, fuel, telephone and water) and home furnishings and equipment (furniture, floor coverings, major appliances and small appliances).

Food - Food and nonalcoholic beverages purchased at a grocery, convenience or specialty store including purchases with food stamps; dining at restaurants; and household expenditures on school meals.

Transportation - Includes the net outlay on the purchase of new and used vehicles, vehicle finance charges, gasoline and motor oil, maintenance and repairs, insurance and public transportation.

Clothing - Includes children's apparel such as diapers, shirts, pants, dresses and suits; footwear; and clothing services such as dry cleaning, alterations and repair and storage.

Health care - Includes medical and dental services not covered by insurance, prescription drugs and medical supplies not covered by insurance, and health insurance premiums not paid by employer or other organization.

Child care and education - Includes day care tuition and supplies, baby-sitting and elementary and high school tuition, books, and supplies.

Miscellaneous - Includes personal care items, entertainment and reading materials.

Source: U.S. Department of Agriculture, Center for Nutrition Policy and Promotion.