Raising a Child is Expensive – Stikii Aims to Help!

Day Care: $952.00 a month – CHECK. New school supplies: $162.00 – CHECK. New soccer uniform: $65.00 – CHECK. Whew! Let’s be honest, having kids is expensive (albeit rewarding, fun and worthwhile) these days! With all of today’s trends, from organic baby food to jogging strollers with iPod docks, it’s hard to keep up let alone compensate for the basic necessities. It is important to fully understand the cost of a child and to be prepared for the years to come.

According to the U.S. Department of Agriculture’s most recent report, a middle-income family with a child born in the year 2010 can expect to shell out approximately $227,000 from birth to the age of 18 on expenses such as shelter, groceries, clothing and other necessary items (this figure does NOT include college tuition or the costs associated with labor/delivery).  That’s roughly $287k when you factor in the effects of inflation! That’s an increase of nearly $60,000 in the last decade!

The average annual spending on a child is estimated to cost up to $13,830 per year in 2012, as compared to $9,860. Factors such as annual household income, child age and number of children per household play a large role in the individual family’s expense as well.

The cost of food, as a result of the rising demand for commodities such as corn and wheat, along with factors like rising oil prices, droughts and floods, has really risen over the past few years. Another noticeable cost increase was that of transportation. Between 2000 and 2012 (according to AAA), consumers paid an average of more than 85% more per gallon at the pump! In addition, health care costs for families with kids have risen almost 58% over the last 10 years.

As far as where this money goes, housing accounts for the largest share of total child-rearing expenses, with food coming in at a close second. Clothing accounts for the least amount of expenditure. See the figure below for a full cost breakdown.

So, the big question is: how can one prepare and save to afford the necessary expenses that come with raising a child? The most important piece of advice we can give you is to start planning EARLY. Start putting a bit of money away each month to help fund these future expenses or to pay for your future child’s college tuition.

Another tip: review all of your expenses and cut out where you can. Maybe you don’t need to take that week-long trip to Europe? Or perhaps the generic brand of cereal will suffice? Every little bit helps!

You can also look into finding tax deferred ways to save for the major bills, like employer sponsored flexible spending accounts for health care and child care, and 529 plans for college – both allow you to save pre-tax dollars.

Since the economic downturn in the United States back in 2008, many of us have been penny-pinching, re-financing and cutting back on the “good stuff” in general. As the cost of gasoline, tuition, produce and clothing continue to rise (and for most, the pay check does not adjust to compensate), we must seek out more affordable options, whether it be coupon clipping, bargain hunting, or shoe shopping.  At Stikii, we are set to help you save money in the clothing and “miscellaneous” expense categories.

As we all know, kids go through shoes like a monkey goes through bananas. We are also aware that children are always in the market for new and fun toys (the miscellaneous). Stikii combines both footwear and toys together, for a one-stop, affordable shop for you and your family. A pair of Stikii shoes retails at $39.99, and most Stik-ems cost only $0.99 – and the newer designs are still only $1.99 each (compared to the “pins” for the “open cell foam shoes” that sell for upwards of $3.99 apiece)! Our Stik-ems are a true bargain! Thus, for roughly $50.00, your child can walk away with a pair of shoes in their favorite color and ten different Stik-ems to play with, trade, and decorate their Stikiis. Stik-ems make fantastic, affordable gifts for holidays, birthdays, etc. Stikii also holds various promotions and specials throughout the year to help lower costs.

Why can’t shoes be fun AND affordable??