Couples w/ kids: What is/was the most expensive time period of your life?

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corp_sharecropper
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Couples w/ kids: What is/was the most expensive time period of your life?

Post by corp_sharecropper »

Wife and I make so much more than we used to but life feels like it has more than kept us in check via expenses. I'm NOT talking lifestyle creep either, I think we lived far more "luxuriously" around 7-8 years ago than we do now. I chalk it up to kids mostly. I'm really hoping things will get less expensive once they get a little older but before college. But I don't know, so I'm curious what the most expensive time has been for you couples with kids.

Right now we're 38/36 with a 6yo in kindergarten (public school at least) and a 3yo in daycare. I honestly can't say I noticed any financial relief when the 6yo left daycare for kindergarten (plus we still need to pay for something in the summer).

I'm going to assume college aged kids are the most expensive by far so I'm leaving them out for this.

Tell me it gets better!

Example choices:

(1) pre-kids
(2) infant/toddler years
(3) 5-10 years old kids
(4) 11-14 years old
(5) 15-18 years old
Jack FFR1846
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by Jack FFR1846 »

15-18. By my oldest son's 18th birthday, he'd finished his first year in college. More expensive than the previous periods combined, easily. Then he transferred to a better, more expensive college and costs doubled. I keep track of my kids' college expenses in cars. Older son graduates in May. He's a 2020 Lamborghini Huracan spider (Doug DeMuro just reviewed this).
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KlangFool
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by KlangFool »

OP,

Not the answer that you are looking for.

I save 1 year of my expenses every year. Then, I spend the rest. So, my expense did not change since I cannot spend what I do not have. The only exception is when the kids go to college. Then, I use my annual savings to pay for a college education.

I save first and spend later.

KlangFool
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by swordandscales »

Same boat as you. Daycare is our second highest expense barely behind the mortgage. We live in a modest home and send our kiddos to a “normal” daycare, e.g. they don’t eat organic, locally sourced smoked salmon for their breakfast snack.

It’s incredibly expensive.
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texasdiver
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by texasdiver »

The most expensive periods for us were:

Pre-school (private day care)

High school: (sports, music lessons, clothes, cell phones, travel, cars, car insurance, school fundraisers, band instruments, travel sports teams, summer study abroad, etc. etc.) it just never ends.

College: Out-of-state tuition...gulp

Ages K - 8 are the cheapest time period. Only real big expense for us during this time period were summer camps and travel (extra plane tickets etc.)
Last edited by texasdiver on Tue Feb 04, 2020 5:43 pm, edited 2 times in total.
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Ged
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by Ged »

End of Life expenses (nursing home, medical care, at home care) can be very high as well.
manatee2005
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by manatee2005 »

texasdiver wrote: Tue Feb 04, 2020 5:40 pm Two most expensive periods for us were:

Pre-school (private day care)

High school: (sports, music lessons, clothes, cell phones, travel, cars, car insurance, school fundraisers, band instruments, travel sports teams, summer study abroad, etc. etc. it just never ends.

College: Out-of-state tuition...gulp

Ages K - 8 are the cheapest time period.
+1.
K-8 were also the most fun years. Before teenage hormones.
rage_phish
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by rage_phish »

Right now
2 kids in daycare. And they just raised tuition this week
It’s our largest expense by far, will cost $30k this year
And that’s discounted day care due to my wife being a government employee
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Sandtrap
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by Sandtrap »

5. (15-18) . . teens
then. . . .
6. (age 19-25). . education . . . launch pad prep. . reprep. . re prep. .
7. (age 25-30) . . education . . failure to launch. . . relaunch. . . failure to thrive. . relaunch. . . .
8. (age 30-35) . . . education . . .
. . . . . then. . . .

Agreed with other posters.
BTH (Before Teenage Hormones) before 12-15 depending on the child.
Is a great time as well.

j :oops:
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Ping Pong
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by Ping Pong »

Ged wrote: Tue Feb 04, 2020 5:41 pm End of Life expenses (nursing home, medical care, at home care) can be very high as well.
I probably won’t be around when my kids need those things, but they can pay for them theirselves.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by texasdiver »

rage_phish wrote: Tue Feb 04, 2020 5:42 pm Right now
2 kids in daycare. And they just raised tuition this week
It’s our largest expense by far, will cost $30k this year
And that’s discounted day care due to my wife being a government employee
We are currently paying about $50k/year all-in to send oldest daughter to an out-of-state public university. That includes things like having her on our cell phone plane and car insurance and travel back and forth to school.
decapod10
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by decapod10 »

I think it depends on how much you spend on daycare. Currently, our kids are early grade school, but we still have a full time nanny. I expect our expenses will be lower once the kids no longer need a nanny, so I think now is the most expensive period (if you don't include paying for college). If you don't spend a lot on daycare, then I think the kids get more expensive as they get older.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by rage_phish »

texasdiver wrote: Tue Feb 04, 2020 5:45 pm
rage_phish wrote: Tue Feb 04, 2020 5:42 pm Right now
2 kids in daycare. And they just raised tuition this week
It’s our largest expense by far, will cost $30k this year
And that’s discounted day care due to my wife being a government employee
We are currently paying about $50k/year all-in to send oldest daughter to an out-of-state public university. That includes things like having her on our cell phone plane and car insurance and travel back and forth to school.
Living in CA, I see no reason for our kids to leave the state for college unless it’s for scholarships
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by HermosaSurfer »

I categorize their expenses, but I don't break out travel and food. I can tell you that for us, it fluctuated as they got involved in various activities, including club sports. We spent about $10K to $20K per child per year. We didn't send them to private school.

They're nearing college and we've already budgeted for that, but as you can imagine it will be more than we've spent so far per year. I also know that our grocery, dining, and travel expenses have all increased because they cost the same (maybe more) than my the parents.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by rj342 »

CAUTION

The basic child tax credit ends and then is followed by the college "Opportunity" tax credit.
GOTCHA -- the first one ends the year they turn *17* and not 18!!
So you may have a gap year where you have no approx $2k tax credit.

That bit us. Of course that could change one way or another in the coming years.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by MarkerFM »

For our two kids about two years apart, the most expensive childhood years were 5) 15-18. The year the oldest turned 15, we spent 3+ times what we spent on them just two years earlier. No private school, no day care. The money was for sailing (regattas around the country) for one, and camp for the other.

Six year later, both in expensive private colleges, spending was 20 times the lower years. Enjoy them while you can and don't watch the $$ too carefully. Blink and they'll be on their own.
anon3838
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by anon3838 »

By far the most expensive phase so far was the decision to have one stay at home parent. No regrets tho.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by nanciT »

College, no question about it. I recall when they were little thinking the cost of daycare, then the school supply lists etc.
College hit, but both did get scholarships, 1 went to Private, 1 State. It was well worth the money and guidance. I want to add as an Educator myself, I see too many go off to college without any idea of what type of career it will lead to. We spent alot of time with both our kids guiding them with that thought.
It worked, they both have excellent jobs they are very happy with what they are doing.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by Foredeck »

We're in the second category. My son is 4 years old and attends full time daycare. Breakfast and lunch are included.

The baby phase cost use about $20,000 for the first year. Then gradually started to come down a bit. Now we're at around $17,000. We're starting to see a little light at the end of the tunnel.

Total daycare cost from 4months to Kindergarten age will easily cost us around $100,000.

I, like many of the parents of young kids here, hope it gets a little less expensive.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by texasdiver »

rage_phish wrote: Tue Feb 04, 2020 5:48 pm
texasdiver wrote: Tue Feb 04, 2020 5:45 pm
rage_phish wrote: Tue Feb 04, 2020 5:42 pm Right now
2 kids in daycare. And they just raised tuition this week
It’s our largest expense by far, will cost $30k this year
And that’s discounted day care due to my wife being a government employee
We are currently paying about $50k/year all-in to send oldest daughter to an out-of-state public university. That includes things like having her on our cell phone plane and car insurance and travel back and forth to school.
Living in CA, I see no reason for our kids to leave the state for college unless it’s for scholarships
We were living in Texas at the time. She did not get into Univ. of Texas or Texas A&M which are the two flagships. She didn't like Texas Tech way out west in Lubbock. That basically left the big urban commuter schools like UT-Arlington, UT-San Antonio, or Univ. of Houston. The 2nd Tier schools like North Texas and Texas State. Or the local privates like SMU, TCU, or Baylor. She really wanted to go to a traditional residential campus with sororities and such. The best option turned out to be Univ. of Arkansas which has about 40% of the student body from Texas for that reason. She had other 4 girls from her HS in her dorm building.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by stoptothink »

Foredeck wrote: Tue Feb 04, 2020 6:39 pm We're in the second category. My son is 4 years old and attends full time daycare. Breakfast and lunch are included.

The baby phase cost use about $20,000 for the first year. Then gradually started to come down a bit. Now we're at around $17,000. We're starting to see a little light at the end of the tunnel.

Total daycare cost from 4months to Kindergarten age will easily cost us around $100,000.

I, like many of the parents of young kids here, hope it gets a little less expensive.
We've spent >$100k in childcare over the last 6yrs (for 2). Son is 4 so it should be over, except for summers, come this September. If we can convince them to go to one of the very cost-effective local universities, there is already enough in 529s to cover it so (fingers crossed) we are seeing the light at the end of the tunnel. Mortgage, wife's college tuition, and daycare (except for summers) all done the end of this year, we should be swimming in it starting '21.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by leeks »

viewtopic.php?f=1&t=302711&p=4997632#p4997632

Maybe it doesn't feel luxurious but you must be spending more than you used to. Do you spend a high proportion of income on housing? Even with high taxes, maxing retirement, and two daycare bills, a $275K family income can still provide quite a luxurious lifestyle if housing isn't eating up a disproportionate share.

The fact that it doesn't feel like you have more money after one daycare bill was eliminated makes me wonder if you have a full handle on where your money is being spent. If you start a new post that lays out your rough financial status and monthly savings/expenditures, Bogleheads love to pick apart budgets and point out places where spending may be excessive. Simply trying to account for it all may lead you to some of your own realizations.

Other than child care, health insurance and possibly larger housing, kids at those ages shouldn't have many significant expenses. Their food, clothing, books, toys should be a tiny fraction of your income. What else are the kid-related expenses?
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by goodenyou »

College-age by far if you include cost of education and living expenses. Throw in a the cost of a car and car insurance and it just increases the expenses. Cash burn from 18-24 has been tremendous for 2 in college. One more to go.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by bloom2708 »

Cars + college and related. Whew.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by CMD1 »

We are in the K-8 grade range with 2 kids. Our costs didn't change dramatically when the second went to K as we still pay aftercare each week + break camps + summer camps + sports and other activities. I am sure things will increase as they get older although cars are probably not on the agenda in the urban area we live in and neither will out of state college. Quite frankly we can't afford some of the numbers per child thrown out on this thread.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by Kenkat »

I know if I said all of them, that would not be particularly helpful. So, I’d say high school and college age is the most expensive for me. They eat more, they drive, their clothes are more expensive, the toys get more expensive, etc. I have one done with college and another getting close and I feel like I can breathe a little again.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by 8foot7 »

Daycare for our youngest from birth to kindergarten will be over $70,000 inclusive - over 14k a year.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by FI4LIFE »

It's probably the combination of maxing out retirement accounts + daycare. You will have some fun money once they are in grade school until they turn 16.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by Monsterflockster »

corp_sharecropper wrote: Tue Feb 04, 2020 5:35 pm Wife and I make so much more than we used to but life feels like it has more than kept us in check via expenses. I'm NOT talking lifestyle creep either, I think we lived far more "luxuriously" around 7-8 years ago than we do now. I chalk it up to kids mostly. I'm really hoping things will get less expensive once they get a little older but before college. But I don't know, so I'm curious what the most expensive time has been for you couples with kids.

Right now we're 38/36 with a 6yo in kindergarten (public school at least) and a 3yo in daycare. I honestly can't say I noticed any financial relief when the 6yo left daycare for kindergarten (plus we still need to pay for something in the summer).

I'm going to assume college aged kids are the most expensive by far so I'm leaving them out for this.

Tell me it gets better!

Example choices:

(1) pre-kids
(2) infant/toddler years
(3) 5-10 years old kids
(4) 11-14 years old
(5) 15-18 years old
What are you doing that your kids are so expensive? I know some parents that spend time with their kids outside hiking, going to the park, for free. I know others who spend tens of thousands on nanny, travel sports, tutors and private school. How “expensive” it is is up to you.

That said nothing you can do about the food bill when a couple teenagers live in your house.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by quantAndHold »

In theory, college was the most expensive, but it didn’t feel like it at the time, because we had saved up in advance and were mostly paying out from savings. We had to cash flow everything before college.

We had family help during daycare years, and adjusted our work schedules so we didn’t need to hire anyone in elementary school. As they got older, things gradually got more expensive, but we also had more income. So it just kind of was what it was. We just kept putting one foot in front of the other, and suddenly, one day they had all graduated from college and were supporting themselves, and we had piles of discretionary income we hadn’t had before.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by RetiredCSProf »

texasdiver wrote: Tue Feb 04, 2020 5:40 pm The most expensive periods for us were:

Pre-school (private day care)

High school: (sports, music lessons, clothes, cell phones, travel, cars, car insurance, school fundraisers, band instruments, travel sports teams, summer study abroad, etc. etc.) it just never ends.

College: Out-of-state tuition...gulp

Ages K - 8 are the cheapest time period. Only real big expense for us during this time period were summer camps and travel (extra plane tickets etc.)
Another +1

Pre-school: I remember thinking that costs would be less when my son left pre-school for public elementary school -- but there was a cost for before-school care, after-school care, summer camps, and various recreational sports (Little League, AYSO soccer, chess classes, in-house ice hockey and roller hockey).

Middle school (public): I remember thinking that costs would be less than elementary because his school offered "zero period" and after-school programs -- but there was a cost for travel ice hockey, travel indoor volleyball, private music lessons (clarinet and classical voice), Bar Mitzvah, and some of the summer camps were "sleep-over" camps.

High school (pubic): I remember thinking that costs would be less than middle-school without the need for summer camps -- but the cost of travel ice hockey increased with more competitive team, added private lessons for hockey and track, continued private music lessons (clarinet, opera) and added piano, and added a participation fee for school organizations (band, orchestra, choir, XC, track, and ice hockey).

College (public): I remember thinking that "activity costs" would be less without athletic fees (no extra cost for school's XC, track, or orchestra), but he is still taking private piano lessons and is stretching 4 years into 6 years of undergraduate school; started driving while in college, and one fender-bender raised auto insurance to $6K annual cost.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by CoastalWinds »

DH and I decided not to have kids because we realized we couldn’t afford them.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by Grt2bOutdoors »

Foredeck wrote: Tue Feb 04, 2020 6:39 pm We're in the second category. My son is 4 years old and attends full time daycare. Breakfast and lunch are included.

The baby phase cost use about $20,000 for the first year. Then gradually started to come down a bit. Now we're at around $17,000. We're starting to see a little light at the end of the tunnel.

Total daycare cost from 4months to Kindergarten age will easily cost us around $100,000.

I, like many of the parents of young kids here, hope it gets a little less expensive.
After daycare, redirect those payments to a college 529 plan if you have not already done so. That will be the next $100k of “spending”. My neighbor has a saying “it never ends”. Less expensive is relative, most parents will always act as a backstop for their offspring, if things get difficult.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by Brianmcg321 »

Jack FFR1846 wrote: Tue Feb 04, 2020 5:39 pm 15-18. By my oldest son's 18th birthday, he'd finished his first year in college. More expensive than the previous periods combined, easily. Then he transferred to a better, more expensive college and costs doubled. I keep track of my kids' college expenses in cars. Older son graduates in May. He's a 2020 Lamborghini Huracan spider (Doug DeMuro just reviewed this).
LOL I saw what you did there.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by ClevrChico »

(2) infant/toddler has been the most expensive so far:

- Two kids in private daycare at the same time: ~$1,700/month
- Diapers, baby supplies, etc: not cheap

Now in comparison for phase (3):

- Two kids after school care: ~$500/month
- Misc kids expenses: not noticeable except the rate at which they outgrow shoes.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by e5116 »

ClevrChico wrote: Tue Feb 04, 2020 11:25 pm (2) infant/toddler has been the most expensive so far:

- Two kids in private daycare at the same time: ~$1,700/month
- Diapers, baby supplies, etc: not cheap

Now in comparison for phase (3):

- Two kids after school care: ~$500/month
- Misc kids expenses: not noticeable except the rate at which they outgrow shoes.
Wow your daycare is CHEAP! I spent over $40k in daycare last year for two kids (3 yo and 1 yo). It's at the YMCA so it's not like super fancy or anything. Pretty much market rate. It was even more expensive the year before when my 1-year was in the baby classroom and the teacher/child ratio was lower.

I expect costs to go done substantially when kindergarten begins. There is a cost to before and after care, but it pales in comparison to daycare costs. The issue is going to be if/when need to hire a nanny for activities that occur before/after school but still during the workday but not at school. Man kids are expensive! I'm figuring daycare age and college are the two most expensive times though pretty clearly.
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ClevrChico
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by ClevrChico »

e5116 wrote: Wed Feb 05, 2020 12:22 am
ClevrChico wrote: Tue Feb 04, 2020 11:25 pm (2) infant/toddler has been the most expensive so far:

- Two kids in private daycare at the same time: ~$1,700/month
- Diapers, baby supplies, etc: not cheap

Now in comparison for phase (3):

- Two kids after school care: ~$500/month
- Misc kids expenses: not noticeable except the rate at which they outgrow shoes.
Wow your daycare is CHEAP! I spent over $40k in daycare last year for two kids (3 yo and 1 yo).
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by travelspot »

Whether one has saved and has the money ready to deploy or is paying as they go, by far the most expensive phase of raising children is the college years. The previous years, while expensive, don’t come close. Tuition and books are just the beginning. Then pay the rent, utilities and food, and maybe throw in some ‘studying abroad’ for good measure. Save up for college while they’re young, and let it grow!
Last edited by travelspot on Wed Feb 05, 2020 1:07 am, edited 1 time in total.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by Vihoo »

Extremely HCOL, dual income. Currently paying our nanny around $44k/yr. So for us it seems ages 0-5.

The thought of spending just half this on daycare sounds amazing, but would kill us inside to not see our kids running around the house at this age. We both work from home. We also appreciate the stability with having a single nanny rather than bouncing around to various caretakers.

Long term plan is public school - which we both went to.
It is good knowing we could likely absorb private school costs and college tuition without too much difficulty at this stage. Hopefully income sustains.
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by duuuuuude »

Currently have 3 in pre-school /day care. We’re in our first year with 3...OUCH! We could have our 4th one go in a few months but we decided for mom to take an extended leave. Income cut temporarily but pre-school gave us a nice discount because we’re going to have 3 there for the next few years.

We’ll finally be free of pre-school daycare costs in 5 years when all 4 will go to the public school where we teach! It will be interesting to see if any new costs will replace the pre-school budget....or will we have more cash flow by then because the expense is gone?!?!?
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by phxjcc »

I second Sandtrap

19-25: college, cars, setting them up, sometimes they fail, and they start over.

Or they are no problem at all, but decide they want to be a DDS, MD, PhD, DPharm, et al.
Sure, they can get loans, but there is still living expenses and healthcare.

I had young woman that worked for me once; one of six kids--blue collar family.
Mom and dad told her she had two weeks after HS graduation to get a job and find a place to live.
She did; worked nights as a waitress, got a BA in Business, became a CPA.
Tough, shrewd, dependable, a model employee.

maybe we are doing it all wrong, eh?
3504PIR
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by 3504PIR »

To us this was a largely location based expense rather than an aged expense. We moved around a lot based on my job and when our child was in private school, expenses were obviously higher. When our child was in public school it was less. None of it was particularly out of hand, but in higher expense locations we unfortunately opted for mor expensive options mostly due to poor options for education.

18+ was a different matter all together. 2 years of private university and now in a state school which is a blessing financially. Still cash flowed 90% of it to date and are now using up the 529. Overall we have gotten off light compared to our family in CA which seem to spend a lot more.

Not a helpful post, I’m sure, but judging from our previous mentioned family, we didn’t spend a lot of time keeping up with the Jones’s even with our child competing in 2 sports at a high level through high school.
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HomerJ
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by HomerJ »

corp_sharecropper wrote: Tue Feb 04, 2020 5:35 pm Wife and I make so much more than we used to but life feels like it has more than kept us in check via expenses. I'm NOT talking lifestyle creep either, I think we lived far more "luxuriously" around 7-8 years ago than we do now. I chalk it up to kids mostly. I'm really hoping things will get less expensive once they get a little older but before college. But I don't know, so I'm curious what the most expensive time has been for you couples with kids.

Right now we're 38/36 with a 6yo in kindergarten (public school at least) and a 3yo in daycare. I honestly can't say I noticed any financial relief when the 6yo left daycare for kindergarten (plus we still need to pay for something in the summer).

I'm going to assume college aged kids are the most expensive by far so I'm leaving them out for this.

Tell me it gets better!

Example choices:

(1) pre-kids
(2) infant/toddler years
(3) 5-10 years old kids
(4) 11-14 years old
(5) 15-18 years old
Ha! My kids are totally spread out, so I got to deal with most of those ages at once...

At one point, I had an 18-year old, a 12-year old, and 2 year-old.

College, braces, AND day-care, all in the same year.... :)

But it gets better... And at least I never had two in college at the same time.

Day-care is probably the most expensive period.
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Foredeck
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by Foredeck »

Grt2bOutdoors wrote: Tue Feb 04, 2020 11:07 pm
Foredeck wrote: Tue Feb 04, 2020 6:39 pm We're in the second category. My son is 4 years old and attends full time daycare. Breakfast and lunch are included.

The baby phase cost use about $20,000 for the first year. Then gradually started to come down a bit. Now we're at around $17,000. We're starting to see a little light at the end of the tunnel.

Total daycare cost from 4months to Kindergarten age will easily cost us around $100,000.

I, like many of the parents of young kids here, hope it gets a little less expensive.
After daycare, redirect those payments to a college 529 plan if you have not already done so. That will be the next $100k of “spending”. My neighbor has a saying “it never ends”. Less expensive is relative, most parents will always act as a backstop for their offspring, if things get difficult.

Yep that's part of our plan once he's in school. Increase the 529 and retirement savings. Maybe try and payoff the mortgage early.

My hope is that the college years will be mostly taken care of by the 529 and not strain us financially.

But to your point, the cost never truly goes away, which is fine . That's part of having kid(s).
likegarden
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by likegarden »

And don't forget the college years of your grandkids. You might want to contribute a 100k to 529s.
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goodenyou
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by goodenyou »

Grt2bOutdoors wrote: Tue Feb 04, 2020 11:07 pm
Foredeck wrote: Tue Feb 04, 2020 6:39 pm We're in the second category. My son is 4 years old and attends full time daycare. Breakfast and lunch are included.

The baby phase cost use about $20,000 for the first year. Then gradually started to come down a bit. Now we're at around $17,000. We're starting to see a little light at the end of the tunnel.

Total daycare cost from 4months to Kindergarten age will easily cost us around $100,000.

I, like many of the parents of young kids here, hope it gets a little less expensive.
After daycare, redirect those payments to a college 529 plan if you have not already done so. That will be the next $100k of “spending”. My neighbor has a saying “it never ends”. Less expensive is relative, most parents will always act as a backstop for their offspring, if things get difficult.
Yeah. I have been told that the first 30 years of raising kids are the hardest.
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veindoc
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by veindoc »

The expenses don’t go away they just shift. I have a 6,9 and 11 year old. When we first had a nanny we got hit with a 10k tax bill related to nanny taxes. We adjusted the withholdings and got that under control. When we graduated out of the nanny phase we forgot to remove the withholdings and got nearly $12,000 back. That was a nice little windfall. We removed the additional withholdings and had more money in our paycheck with no ugly tax bills. That lasted for about a year. Now the kids are involved in aftercare and a number of other activities and we are feeling the pinch again. I’m surprised to hear that 15-18 it ramps up again. Better enjoy it now while I can.
OnTrack2020
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by OnTrack2020 »

Ages 15-22 - Because it usually means cash, cars, and college.

The thing is, I would hope for many people, is that there is some amount of savings to draw from as you and the child/children get older.
MotoTrojan
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by MotoTrojan »

rage_phish wrote: Tue Feb 04, 2020 5:48 pm
texasdiver wrote: Tue Feb 04, 2020 5:45 pm
rage_phish wrote: Tue Feb 04, 2020 5:42 pm Right now
2 kids in daycare. And they just raised tuition this week
It’s our largest expense by far, will cost $30k this year
And that’s discounted day care due to my wife being a government employee
We are currently paying about $50k/year all-in to send oldest daughter to an out-of-state public university. That includes things like having her on our cell phone plane and car insurance and travel back and forth to school.
Living in CA, I see no reason for our kids to leave the state for college unless it’s for scholarships
I can think of a few reasons to leave your home state, especially if it’s CA.
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TomatoTomahto
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Re: Couples w/ kids: What is/was the most expensive time period of your life?

Post by TomatoTomahto »

We had two in college at the same time for two years. The one thing I’ll say about this is that private high school made college not that much of a jolt. 😁

HS was around $40k/year/child (plus living at home expenses) and college around $75k/year/child (including living expenses).

All that said, it was worth it. The one who graduated has launched astoundingly well. He already makes more than my best year ever, and I wasn’t that shabby. 👍
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