Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Will Having a Child Ruin Your Retirement? Not If You Follow These Three Steps

Over the course of 18 years, how much do you think it costs to raise a child in the United States?

According to a 2012 study, the total bill will run you about $241,000 in today's dollars. Throw in the cost of a four-year in-state public university  and we're looking at a grand total of about $313,000.

When the average 30-year old has retirement savings of just $13,000 in the bank, it's easy to see why some begin to think the possibility of having a child and actually retiring are just about impossible.

3 simple steps to shave off half of those costs -- if you can dare to be different
When you look at sobering statistics like this, you start to wonder how we ever got to this point. The answer is actually pretty simple: first, too often, we live beyond our means. And second, we have come to believe that there is one well-worn path for our kids to follow in order to be successful in life. It's so engrained in our society that many of us don't even stop to think about it.

Below, I'll present three very simple steps to help you question these assumptions, and help shave over 55% off of these costs. I'm a big fan of the KISS method of living ("Keep It Simple, Stupid"), so don't expect to be blown away by financial wizardry. Oftentimes, the most effective solutions are maddeningly simple.

You might notice the numbers are a little different from the ones above; that's because I broke out a specific situation -- a Midwestern urban couple making between $60,000 and $105,000 -- rather than taking the average across all demographics.

Of course, everyone's situation is different, but for those worried about affording a child and actually having money left over to retire, these three represent great starting points.

How to get even more income during retirement
Social Security plays a key role in your financial security, but it's not the only way to boost your retirement income. In our brand-new free report, our retirement experts give their insight on a simple strategy to take advantage of a little-known IRS rule that can help ensure a more comfortable retirement for you and your family. Click here to get your copy today.

Have a Kid or Save for Retirement? It's Not "Either Or" from Brian Stoffel

Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 17, 2014, at 1:35 PM, Minow wrote:

    Interesting, it didn't cost me $200k odd dollars to raise my kids..well maybe two, but certainly not one. if you factor the cost alone with just a couple then it might be half that, then throw-in kids I get your point...nice informative article though! I like all the information recommended on day care and transportation. I'm actually coming out ahead with my family because wife is a home maker thank god for her every day! My son will be graduating from The USAFA Class 2014. I spent less that $5000.00 (including class ring & cell phone bills) on him including his needs there and trips back and forth over the holidays. Next up at the plate my daughter to sure to knock one out the park? If she stays focused and filter interference (boys)! Thanks for the article Mr. Stoffel

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2948194, ~/Articles/ArticleHandler.aspx, 9/3/2015 7:27:17 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Brian Stoffel

Brian Stoffel has been a Fool since 2008, and a financial journalist for the Motley Fool since 2010. He tends to follow the investment strategies of Fool-founder David Gardner, looking for the most innovative companies driving positive change for the future.

Today's Market

updated Moments ago Sponsored by:
DOW 16,374.76 23.38 0.14%
S&P 500 1,951.13 2.27 0.12%
NASD 4,733.50 -16.48 -0.35%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes