Tag: rising costs

How Much Will That Baby Cost You?



The average baby born in 2012 will be cute, drooly… and expensive; according to the USDA, it will cost $241,080 to raise a child born this year until s/he turns 18 — and that’s not even counting college.

For the purposes of this study, Maryland counts as a southern state — and that’s a good thing, since the southeast turns out to be the least expensive urban region in which to raise a child:  Average costs are a mere $226,260; a northeastern baby is more than $50,000 more expensive. Adjust for inflation, and today’s new parents can expect to spend more than $300,000 on their newborns.

Will the Class of 2034 Have to Pay $400k for College?


Talk about sticker shock:  this year’s babies may end up paying over $110,000 a year for college, if costs keep rising at the same rate. Nope, that’s not a typo.  As of last year, the cost of a year at one of the nation’s ten most-expensive private schools ran to $56,659 (that’s including tuition, fees, room, and board… but not textbooks). Factor in the 3 percent annual increase that’s been the recent norm, and the class of 2034 (or their parents) might be shelling out $422,320 for a four-year degree.

No matter how much financial aid tempers the cost, that’s a prohibitive price tag. (Consider the fact that families with at least one child have seen incomes grow only about 1 percent since 1987.) Some schools are trying to stem the tide themselves.  Harvard pledges that students from families earning between $65,000 and $150,000 annually will pay a maximum of 10 percent of their family’s earnings each year. For the sake of the class of 2034, let’s hope that policy stays in place.