1-minute Wonders

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What Could You Buy Instead of a Baby?
www.1minutewonders.co.uk

What Could You Buy Instead of a Baby?

Geraint Clarke
Jun 14, 2021
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What Could You Buy Instead of a Baby?
www.1minutewonders.co.uk
What Could You Buy for a Baby?

The cost of raising a child is estimated at £10,800 per year ($15,223) - including childcare.

The average salary in the UK is £31,461. ($44,000)

That means, on average, a child will cost you over 1/3 of your income.

Now I'm no economist, but adding a one-third financial liability to your life is something to seriously think about.

This got me thinking...

What could you have 'instead' of a baby?

Here are 6 alternatives

#1. A. brand new Jaguar F-Pace within 4 years.

What Could You Buy for a Baby?

#2. Financial Freedom - You'd have over £500,000 ($700,000) if you invested £10,800 per year in the S&P 500, for 18 years.

What Could You Buy for a Baby?
Source: retire.americanfunds.com

#3. 20 rescue dogs and £5,000 spending money... Or a 1-year-old.

What Could You Buy for a Baby?

#4. A second mortgage, on a home for your aging parents to live in, rent-free.

What Could You Buy for a Baby?

#5. 18 months of groceries, or a 1-year old.

What Could You Buy for a Baby?

#6. Three different all-inclusive holidays to Mexico (per year)

What Could You Buy for a Baby?

Now of course you don't need to pay for childcare once your kid hits a certain age, meaning the cost would decrease significantly, but:

  • the average number of children per family is 2.

  • other costs come in (college, university, driving lessons, school trips, house deposits, wedding contributions, etc)

... So I feel justified in extrapolating those costs over 18 years.

Many parents would say...

"You can't put a price on a life"

Buuuuut, if you did, like I just have, and you want children, you either need to:

  1. Make significant lifestyle changes to cut one-third of your expenditure.

  2. Earn at least £11,000 per year more than you do now - to be unaffected.

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What Could You Buy Instead of a Baby?
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