Fort Dodge Messenger, IA
03/06/06
Raising your quarter-million dollar baby
Area resources available for families needing assistance
By KELLI BLOOMQUIST, Messenger Staff Writer
Raising children may be fulfilling as a parent, but according to new statistics
released by the U.S. Department of Agriculture, it certainly isn’t easy on the
pocketbook.
Estimates released state that a dual-parent family with a before-tax income
between $41,700 to $70,200 will spend nearly $185,000 on a child from birth to
age 18. Parents with a dual income of more than $70,200 should expect to spend
nearly $270,000 on a child.
Double that for two children and triple it for three.
Estimates also show the cost of raising a child as a single parent only dips
narrowly from that of dual-parent families.
‘‘Raising children certainly isn’t something that is inexpensive,’’ said Janette
Miller, regional supervisor for Children and Families of Iowa. ‘‘The cost can be
very stressful.’’
While parents continue to see the overall cost of rearing a child increase each
year, their financial concerns can be compounded when state and area income
levels fall short of what’s needed to make ends meet.
‘‘Past studies have shown that the median income in our area has fallen below
that of the state and national averages,’’ said Miller. ‘‘Certainly there are some
families that are doing fine, but there are also some that are very much struggling
to make ends meet for themselves and their children.’’
These statistics ring true throughout many north central Iowa counties.
According to the Office of Social and Economic Trend Analysis at Iowa State
University, Ames, the median household income for the state of Iowa based
upon 1999 census records was $36,742.19.
Only two area counties exceeded that income level as Hamilton County recorded
a median income of $38,658 followed by Humboldt at $38,201.
Wright County nearly met the median income level but fell short by $545.
Webster, Calhoun, Pocahontas, Palo Alto and Sac counties all fell below the
state median income level.
‘‘We have a cross section of incomes throughout our area,’’ said Miller. ‘‘Some
are able to support their families and there are others that are experiencing many
difficulties.’’
Totaling up the monthly cost of diapers, school lunch money and new clothing
can send most parents into shock no matter what their income level. Yet while
financial experts say it is best to begin putting money aside right away, for those
feeling the pinch of the pocketbook, there are a number of resources available
throughout the area to help with the everyday cost of raising children.
‘‘This is not something that parents have to go at alone,’’ said Miller. ‘‘There are a
number of resources available to families throughout our area, some of which are
income based and others that are not. The real key is to set strict limits and to do
so right away. Set a budget and stick to it. Use the Internet to find deals and clip
coupons. Find discounts. Sure the price of raising children is high, but it is also
possible to find discounts that would lessen that cost.’’
Among the many resources cited by Miller were the SHARE IOWA program,
which allows families to order large packages of food at discounted prices, the
food pantry, the Red Cross, Upper Des Moines Opportunity and many others.
‘‘Each entity has its own criteria,’’ Miller said. ‘‘They can help to access your
situation and will be able to help you in whatever ways they can.’’
If it isn’t tangible goods, but dollar signs that have parents stressed, experts say
there are ways to keep spending in check, whether it be cutting coupons or
sitting down with a financial planner.
‘‘Raising children these days isn’t cheap,’’ said Rick McCarville of McCarville
Financial Network. ‘‘Parents need to divide the things that are most important to
them in terms of money and that’s where most people get hung up. There are a
lot of costs that are coming at parents all at once. It’s overwhelming.
“The key is to take baby steps. There is more cost involved as kids get older, so
parents should look at putting something away as they are able. It doesn’t have
to be a lot. If all that they can afford is $50 a month, then put away $50. It’s up to
each individual and their spending needs. If the next year they can afford $55,
then put that away. Something is better than nothing.’’
While the numbers released by the U.S. Department of Agriculture are lofty, they
do not include the cost of a college education.
‘‘We are figuring right now for a newborn that there will be a 6-percent increase in
the cost of a college education,’’ said McCarville. ‘‘For a four-year state education
that will be nearly $153,000.’’
Add the increased cost of college in with the total cost up to age 18 and most
new parents are bound to go into financial shock.
‘‘It’s time to start saving,’’ said McCarville, ‘‘even if it is just a little at a time.’’