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Study Shows People Are Putting Off Having Kids Because of Finances

by on August 2, 2012

By Samantha Savory

The United States birthrate is the lowest it’s been in 25 years. Twenty-something’s are being conservative when it comes to increasing their expenses, even if that means not starting a family. With the average credit card debt per household with credit card debt at $15,956 and collectively, college graduates owe more than $1 trillion in student loan debt, affording kids is just not realistic for many young couples at this time.

According to the USA Today, since the economy went into a downward spiral, the average number of births per woman fell 12% from a peak of 2.12 in 2007. Demographic Intelligence projects the rate to hit 1.87 this year and 1.86 next year — the lowest since 1987.

Another factor that economists are saying is preventing many young couples from starting a family is the unemployment rate especially regarding Generation Y. As the national unemployment rate hovers around 8 percent, it’s significantly higher among new college graduates and entry-level workers inching closer to 10 percent.

According to the U.S. Department of Agriculture, for couples who make under $45,000, they will spend over $140,000 on one child’s needs. Another rough estimate often quoted is $250,000 from birth to age 18. The annual cost of raising a child is between $12,290 to $14,320 per year for middle-income families, according to a 2011 government report. No matter what statistic you choose to believe is most accurate, that’s a lot of money! Depending on whether you decide to put your child through private grade school or pay for their college can increase that number even further. The costs associated with having children combined with the need for emergency savings, retirement plans, the increasing cost of living and any debt owed are among the top reasons experts are saying many young couples are putting off having kids.

Whether young people want kids now, later or never, one thing is certain, there are plenty of people habituating earth. As of March 2011, planet earth has reached over 7 billion human beings. Tell us in the comment section if you agree that it’s the smart financial move to wait and have kids? Or would you rather just have kids now and be extremely frugal?

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