{"id":21991,"date":"2023-09-25T14:20:13","date_gmt":"2023-09-25T14:20:13","guid":{"rendered":"https:\/\/microloannexus.com\/personal-finance\/how-much-does-it-cost-to-raise-a-child-college-may-no-longer-be-the-biggest-expense\/"},"modified":"2023-09-25T14:20:14","modified_gmt":"2023-09-25T14:20:14","slug":"how-much-does-it-cost-to-raise-a-child-college-may-no-longer-be-the-biggest-expense","status":"publish","type":"post","link":"https:\/\/microloannexus.com\/?p=21991","title":{"rendered":"How much does it cost to raise a child? College may no longer be the biggest expense."},"content":{"rendered":"
\n

Parents spend a lot of time worrying about how they\u2019ll afford college tuition for their kids someday, but a pair of recent surveys show exorbitant college-like costs actually come much earlier in life.<\/p>\n

In more than half the states, childcare costs more than in-state public college tuition, according to lending platform NetCredit.com. Then,\u00a0comes the price you pay for independent kids. Teen car ownership now also costs more than in-state tuition at a public university, an analysis by car app Jerry shows.<\/p>\n

Everyone already knows raising a child is expensive, but it\u2019s getting even pricier. After two years of elevated inflation, families are feeling pinched more than ever. Overall, for example, parents spend a significant portion of their annual income on child-related expenses. Nationwide, families spend 19% of their annual income on child-rearing expenses, online lending marketplace LendingTree said.<\/p>\n

\u201cIdeally, you\u2019d be able to keep childcare costs to 10% or less of your total income,\u201d said Matt Schulz, LendingTree chief credit analyst.\u00a0\u201cBut that\u2019s laughably unrealistic for millions of Americans.\u201d<\/p>\n

How expensive is childcare?<\/h2>\n

On\u00a0average, childcare costs $1,031 a year more\u00a0than\u00a0public college tuition, NetCredit\u00a0said.<\/p>\n

\n
<\/div>\n<\/div>\n

NetCredit examined the average annual fees paid for public in-state college tuition and the average cost of childcare in each state and calculated the difference between the two. Then, it compared these costs to local average salaries to find the affordability of childcare and in-state college tuition in every state.<\/p>\n

In 28 out of 50 states, childcare tops in-state tuition, it said. Hawaii has the largest gap: Annual childcare costs a whopping $15,995 more than a year of tuition. New York is a close second with a $15, 951 gap between childcare and college costs.<\/p>\n

At the other end of the spectrum, Vermont\u2019s annual childcare costs were $5,423 less than in-state public college tuition, NetCredit said. That\u2019s followed by South Carolina, a distant second, with childcare $3,679 below annual tuition. <\/p>\n

How expensive is it for a teenager to own a car?<\/h2>\n

It costs $11,378 a year for a teen to own and drive a new car, more than the average annual in-state tuition at a four-year public university, estimated at $10,940, Jerry said.<\/p>\n

To find this, Jerry used AAA\u2019s driving costs calculator and added the difference ($829) in insurance costs between teen drivers and those over 19 years old.\u00a0It set\u00a0annual mileage at 10,000, the choice closest to the 7,200 miles a year driven by the average teen, according to the U.S. Federal Highway Administration. <\/p>\n

When comparing increases in tuition and the costs of car ownership, it compared the College Board\u2019s tuition in the 2017-18 academic year with the 2022-23 school year, and car ownership costs from the end of 2018 through July 2023.\u00a0 <\/p>\n

Not every teen gets new wheels, of course, but even owning a used car can add up. The annual $10,276 cost to own a 5-year-old Toyota Camry exceeds in-state tuition at the flagship public university in 13 states and is just $664 less than the average for all four-year public universities, Jerry said.<\/p>\n

At $14.08 per hour – the average wage for fast food workers, lifeguards, retail salespeople, and amusement and recreation attendants – a teen would have to work 49 hours a week over a 15-week summer, or 14 hours every week for a year, to cover the cost of owning and driving a 2018 Toyota, assuming it\u2019s financed, Jerry said.<\/p>\n

\u201cNo wonder some\u00a0studies have concluded that shifting economics explains much of the difference in attitudes toward driving and car ownership among Millennials and Gen Z,\u201d wrote Jerry\u2019s Henry Hoenig.<\/p>\n

\n
\n
<\/div>\n<\/div>\n<\/figure>\n

Why are childcare costs surging?<\/h2>\n

Demand for childcare has risen in the past couple of decades in line with the number of two-income households, according to the St. Louis Federal Reserve. <\/p>\n

In 2019, the public policy nonprofit Center for American Progress said about half of U.S. children spend at least some time in a licensed childcare facility.<\/p>\n

Pair that with the pandemic, which fueled sudden wage growth for\u00a0childcare workers\u00a0as centers worked to attract and retain workers much like other businesses. As of October 2021, average hourly earnings for\u00a0childcare workers had risen 10.4% to $16.44 from the prior year \u2014on top of already above-average wage growth of 4.3% between September 2019 and September 2020, and much stronger than the 5.8% wage growth for other workers, it said.<\/p>\n

In July, annual childcare costs were up 6% from a year earlier, around twice the\u00a0pace of overall inflation of 3.2%, the Bureau of Labor Statistics said. <\/p>\n

Childcare woes hurt everyone: <\/strong>Childcare crisis: What costly daycare and fewer workers mean for US economy and taxpayers<\/span><\/p>\n

Why\u00a0are car ownership costs climbing?<\/h2>\n

Blame soaring prices for\u00a0auto insurance, maintenance and\u00a0car repairs, vehicle prices and parts, and gasoline. Since 2018, they\u2019ve all risen at least\u00a0three times\u00a0faster\u00a0than tuition at four-year state universities, Jerry said.<\/p>\n

And don\u2019t expect car ownership to get much cheaper any time soon. \u201cAs interest rates continue to climb, this adds a layer of expense per month that consumers should consider when shopping for their next vehicle,\u201d said Greg Brannon, AAA\u2019s director of automotive research.\u00a0 The Fed has projected it will raise its benchmark, short-term fed funds rate one more time this year by a quarter point to a range of 5.5% to 5.75%.<\/p>\n

Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com\u00a0and subscribe to our free\u00a0Daily Money newsletter\u00a0for personal finance tips and business news every Monday through Friday morning.\u00a0\u00a0<\/em><\/p>\n

This article originally appeared on USA TODAY: College tuition may no longer be parents’ biggest child-rearing bill<\/em><\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Parents spend a lot of time worrying about how they\u2019ll afford college tuition for their kids someday, but a pair of recent surveys show exorbitant college-like costs actually come much earlier in life. In more than half the states, childcare costs more than in-state public college tuition, according to lending platform NetCredit.com. Then,\u00a0comes the price<\/p>\n","protected":false},"author":1,"featured_media":21992,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44],"tags":[32],"class_list":{"0":"post-21991","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-featured"},"yoast_head":"\nHow much does it cost to raise a child? College may no longer be the biggest expense. | Micro Loan Nexus<\/title>\n<meta name=\"description\" content=\"Parents spend a lot of time worrying about how they\u2019ll afford college tuition for their kids someday, but a pair of recent surveys show exorbitant\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/microloannexus.com\/?p=21991\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How much does it cost to raise a child? College may no longer be the biggest expense. | Micro Loan Nexus\" \/>\n<meta property=\"og:description\" content=\"Parents spend a lot of time worrying about how they\u2019ll afford college tuition for their kids someday, but a pair of recent surveys show exorbitant\" \/>\n<meta property=\"og:url\" content=\"https:\/\/microloannexus.com\/?p=21991\" \/>\n<meta property=\"og:site_name\" content=\"Micro Loan Nexus\" \/>\n<meta property=\"article:published_time\" content=\"2023-09-25T14:20:13+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-09-25T14:20:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/09\/f0f6aa7751700837d9eb83fd84972269.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/microloannexus.com\/?p=21991#article\",\"isPartOf\":{\"@id\":\"https:\/\/microloannexus.com\/?p=21991\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/microloannexus.com\/#\/schema\/person\/e2d3b62d35ac325be68540d68dc6660a\"},\"headline\":\"How much does it cost to raise a child? College may no longer be the biggest expense.\",\"datePublished\":\"2023-09-25T14:20:13+00:00\",\"dateModified\":\"2023-09-25T14:20:14+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/microloannexus.com\/?p=21991\"},\"wordCount\":940,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/microloannexus.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Personal Finance\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/microloannexus.com\/?p=21991#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/microloannexus.com\/?p=21991\",\"url\":\"https:\/\/microloannexus.com\/?p=21991\",\"name\":\"How much does it cost to raise a child? College may no longer be the biggest expense. | Micro Loan Nexus\",\"isPartOf\":{\"@id\":\"https:\/\/microloannexus.com\/#website\"},\"datePublished\":\"2023-09-25T14:20:13+00:00\",\"dateModified\":\"2023-09-25T14:20:14+00:00\",\"description\":\"Parents spend a lot of time worrying about how they\u2019ll afford college tuition for their kids someday, but a pair of recent surveys show exorbitant\",\"breadcrumb\":{\"@id\":\"https:\/\/microloannexus.com\/?p=21991#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/microloannexus.com\/?p=21991\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/microloannexus.com\/?p=21991#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/microloannexus.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"How much does it cost to raise a child? College may no longer be the biggest expense.\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/microloannexus.com\/#website\",\"url\":\"https:\/\/microloannexus.com\/\",\"name\":\"Solutions For Real\",\"description\":\"Latest Finance News and Updates\",\"publisher\":{\"@id\":\"https:\/\/microloannexus.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/microloannexus.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/microloannexus.com\/#organization\",\"name\":\"Solutions For Real\",\"url\":\"https:\/\/microloannexus.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/microloannexus.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/sf-logo-1.png\",\"contentUrl\":\"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/sf-logo-1.png\",\"width\":690,\"height\":64,\"caption\":\"Solutions For Real\"},\"image\":{\"@id\":\"https:\/\/microloannexus.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/microloannexus.com\/#\/schema\/person\/e2d3b62d35ac325be68540d68dc6660a\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/microloannexus.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1691264579-96x96.png\",\"contentUrl\":\"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1691264579-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/microloannexus.com\"],\"url\":\"https:\/\/microloannexus.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"How much does it cost to raise a child? College may no longer be the biggest expense. | Micro Loan Nexus","description":"Parents spend a lot of time worrying about how they\u2019ll afford college tuition for their kids someday, but a pair of recent surveys show exorbitant","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/microloannexus.com\/?p=21991","og_locale":"en_US","og_type":"article","og_title":"How much does it cost to raise a child? College may no longer be the biggest expense. | Micro Loan Nexus","og_description":"Parents spend a lot of time worrying about how they\u2019ll afford college tuition for their kids someday, but a pair of recent surveys show exorbitant","og_url":"https:\/\/microloannexus.com\/?p=21991","og_site_name":"Micro Loan Nexus","article_published_time":"2023-09-25T14:20:13+00:00","article_modified_time":"2023-09-25T14:20:14+00:00","og_image":[{"width":1200,"height":800,"url":"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/09\/f0f6aa7751700837d9eb83fd84972269.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/microloannexus.com\/?p=21991#article","isPartOf":{"@id":"https:\/\/microloannexus.com\/?p=21991"},"author":{"name":"News Room","@id":"https:\/\/microloannexus.com\/#\/schema\/person\/e2d3b62d35ac325be68540d68dc6660a"},"headline":"How much does it cost to raise a child? College may no longer be the biggest expense.","datePublished":"2023-09-25T14:20:13+00:00","dateModified":"2023-09-25T14:20:14+00:00","mainEntityOfPage":{"@id":"https:\/\/microloannexus.com\/?p=21991"},"wordCount":940,"commentCount":0,"publisher":{"@id":"https:\/\/microloannexus.com\/#organization"},"keywords":["Featured"],"articleSection":["Personal Finance"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/microloannexus.com\/?p=21991#respond"]}]},{"@type":"WebPage","@id":"https:\/\/microloannexus.com\/?p=21991","url":"https:\/\/microloannexus.com\/?p=21991","name":"How much does it cost to raise a child? College may no longer be the biggest expense. | Micro Loan Nexus","isPartOf":{"@id":"https:\/\/microloannexus.com\/#website"},"datePublished":"2023-09-25T14:20:13+00:00","dateModified":"2023-09-25T14:20:14+00:00","description":"Parents spend a lot of time worrying about how they\u2019ll afford college tuition for their kids someday, but a pair of recent surveys show exorbitant","breadcrumb":{"@id":"https:\/\/microloannexus.com\/?p=21991#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/microloannexus.com\/?p=21991"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/microloannexus.com\/?p=21991#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/microloannexus.com\/"},{"@type":"ListItem","position":2,"name":"How much does it cost to raise a child? College may no longer be the biggest expense."}]},{"@type":"WebSite","@id":"https:\/\/microloannexus.com\/#website","url":"https:\/\/microloannexus.com\/","name":"Solutions For Real","description":"Latest Finance News and Updates","publisher":{"@id":"https:\/\/microloannexus.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/microloannexus.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/microloannexus.com\/#organization","name":"Solutions For Real","url":"https:\/\/microloannexus.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/microloannexus.com\/#\/schema\/logo\/image\/","url":"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/sf-logo-1.png","contentUrl":"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/sf-logo-1.png","width":690,"height":64,"caption":"Solutions For Real"},"image":{"@id":"https:\/\/microloannexus.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/microloannexus.com\/#\/schema\/person\/e2d3b62d35ac325be68540d68dc6660a","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/microloannexus.com\/#\/schema\/person\/image\/","url":"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1691264579-96x96.png","contentUrl":"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1691264579-96x96.png","caption":"News Room"},"sameAs":["https:\/\/microloannexus.com"],"url":"https:\/\/microloannexus.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/microloannexus.com\/index.php?rest_route=\/wp\/v2\/posts\/21991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/microloannexus.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/microloannexus.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/microloannexus.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/microloannexus.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21991"}],"version-history":[{"count":1,"href":"https:\/\/microloannexus.com\/index.php?rest_route=\/wp\/v2\/posts\/21991\/revisions"}],"predecessor-version":[{"id":21993,"href":"https:\/\/microloannexus.com\/index.php?rest_route=\/wp\/v2\/posts\/21991\/revisions\/21993"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/microloannexus.com\/index.php?rest_route=\/wp\/v2\/media\/21992"}],"wp:attachment":[{"href":"https:\/\/microloannexus.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/microloannexus.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/microloannexus.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}