What if something should happen to you during these precious moments in your new family’s life? Do you have life insurance to cover the rising costs of raising a child? Do you have enough insurance? According to government figures, parents who had a child in 2012 can expect to pay $241,080 to raise him/her for the next 17 years. When you break that down, it is $14,182 per year. Given the rising costs of daycare, food, clothing, and education this does not seem like a realistic number.
We all want the best for our children. We want them to go to the best schools, play sports, be involved with clubs and organizations that will help them prosper. When you start breaking down the costs of all of these items, that $14,182 annual figure is blown completely out of the water.
I was curious to see how much money goes into those 17 years. Let’s start off with daycare expenses. In Massachusetts, the average cost of daycare center is approximately $15,000 a year. There goes that $14,182 annual figure the government provided.
Private elementary and high schools will also eat up that figure. Private (non-sectarian) elementary school tuition is approximately $15,000 per year and high school is approximately $27,000 per year. Religious schools can average $6,000 for elementary and $10,000 for high school.
Now let’s look at all of those activities our children love. I have a daughter who plays soccer year round. I have a lot of friends whose children are ages 17 and under that are involved with numerous activities. Some of these friends were actually embarrassed to tell me what they pay for the activities (they thought I would think they are crazy). As you are looking for your child’s first baseball glove, ballet slippers, soccer ball, cheerleading outfit, keep some of costs in the back of your mind. You may want to reconsider your life insurance needs.
• Little League Baseball - $100
• Town Soccer (travel team per season) - $80
• Indoor soccer in the winter (because we live in New England) - $90-$100
• Premiere Soccer Club - $1,000-$2,000
• Pop Warner Football - $150
• Town Lacrosse - $160
• AAU (Amateur Athletic Union) Basketball - $500 - $1700
• Karate Classes (per month) $100
• Swimming lessons (8 week session) $90 - $120
• Competitive Cheerleading – up to $3,000 per year
• Horseback riding lessons - $35 per half hour
• Dance Lessons - $100 per month
• Gymnastics - $75 per month
• Art Classes - $25 per class
• Piano Lessons - $80-100 per month
• Voice Lessons - $25 per half hour
• High School Sports - $150 per sport
• Show Choir - $300 per year
• Summer Camps - $150 per week
• Drivers Education - $625
• SAT Prep Classes (online) - $300 (18 hour in class course) - $700
Keep in mind the activity cost is for the registration fee only. This does not include equipment, uniforms, costumes, travel expenses. If you travel to National Tournaments and/or Competitions those travel expenses include plane fare, hotels, and car rentals.
If you haven’t fallen off your chair yet, look at the current prices of colleges. For example, in Massachusetts, tuition, room and board costs approximately $25,000 per year and a private college can be up to $58,000 per year. Of course all of those little hidden fees are not included in this price. Did you know, just to park your car at the college costs approximately $350 per semester which is not included in the room and board costs? Yikes!
So, as you gaze into your newborn baby’s sparkling eyes and dreaming of the future you want to provide for him or her; think about how much it will cost to raise them for the next 18 years. Ask yourself again, do you have enough life insurance to make their dreams come true?
About the author: Teri Costen has been in the life insurance business for over 20 years. She is a mother of three who enjoys working out, taking aerobic kickboxing classes, and making stained glass. Teri believes that finding the right life insurance policy helps protect your family and loved ones. You can contact Teri at 1-800-651-1953 or TCosten@Pivot.com.