The marginal and average total cost curves, illustrating the point (Q1, P1) at which productive efficiency is achieved (MC=ATC a.k.a. AC). (Photo credit: Wikipedia)Financial IQ Philippines Quick Hit(s):Due to the continual rising cost, we need to make appropriate plans for our future. Annual cost of education is also quite significant as it exceeds our annual inflation rate.
Otherwise, we may even encounter some challenges during our retirement years.
Your little bundle of joy is going to require a wad of cash.
The cost of raising a child from birth to age 17 has surged 25 percent over the last 10 years, due largely to the rising cost of groceries and medical care, according to the Department of Agriculture, which tracks annual expenditures on children by families.
The government's most recent annual report reveals a middle-income family with a child born in 2010 can expect to spend roughly $227,000 for food, shelter and other expenses necessary to raise that child - $287,000 when you factor in projected inflation.
And, no, the bill does not include the cost of college or anything related to the pregnancy and delivery.
"If you sat down to tally up the total cost of having children, you'd never have them," says Timothy Knotts, a father of four and a certified financial planner with The Hogan-Knotts Financial Group in Red Bank N.J. "It's a very expensive adventure."
Talk about a life-changing event. That's a lot of vacations, clothing, and restaurant dinners you may no longer enjoy.
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