What Do You Do With The Extra Money?

The most recent figure I’ve seen for the cost of raising a kid over the course of 18 years is $226,920 (using the US dollar amount as most of my readers are probably American). Put another way, that’s $12,607 per year, or just over $1,000 per month. Add college to that, and you’re looking at more.

Assuming you have two kids spaced two years apart, over the course of those 20 years, you would have $453,840 less disposable income than you would if you had no kids. That’s a lot of money!

Needless to say this is one of the big motivating factors for my childfree choice, and I’ve done something rather sneaky. I’ve started a bank account where I put away the cost of raising two children away every month (and lo and behold even doing this leaves me with a fair bit of disposable income). By the end of 20 years, I will have grown that bank account enough to outright buy an Aston Martin DB9 (my dream car) and put a serious down payment on my own private airplane (if not pay it off outright).

Even among all that, I still have enough take-home money (after taxes and contributing to my retirement fund) to put away for an emergency fund and travel some. Of course, this is partly because I live like a plebeian in other aspects of my life, but you get the picture.

So, sound off everyone! What do you do with all the extra disposable income your childfree life offers you? Travel? Nice clothes? What? I’d love to hear from you!

Footnote: the cost figure is assuming you don’t get any financial aid from the government (welfare, food stamps, etc.). Of course, I think it’s BS that the government will take care of someone’s children, but that’s a rant for another day.


About coolchildfreeguy

Childfree guy living in Mexico City. Professional pilot by day, all-around fun guy by night.

Posted on January 18, 2012, in Childfree, Finance, Parenting. Bookmark the permalink. 8 Comments.

  1. I’d love to know how that figure was developed. I don’t spend nearly that much each month on my three kids altogether. I am, however, considering trying to get a wealthy family to adopt ME.

  2. I use that extra money wisely – it goes into my mortgage, and I’m also paying for my retraining (don’t need a student loan).

  3. This is hard to explain but I always wondered if they factored in what you can make off the money you’re not spending. In other words, by not spending money on extra food, clothes, etc. for a child, I’m going to be investing it somehow. Even if all I’m doing to paying off loans with that “extra” money, I might be getting a 8% return on it which is also something a parent won’t see.
    Are they saying the childfree person nets an extra quarter million over a lifetime or are they saying they total less than that, but an average rate of return on that extra money will add to it? I mean if you’re not spending an extra quarter million on something, if you invest it right, it could be a llloooottt more than what the parent makes.
    Even with that, I think I simply like the idea of not having to make a lot more since I don’t have kids. If I want a job with less responsibilities but less income, I can choose that if I desire.

  4. I have a separate travel account in which I put money away that I would otherwise be spending on a kid. I’ll tell you what – Australia, New Zealand, Italy and Japan have been awesome. My friends that have kids have diapers and school to worry about while I consider which continent to explore next. I am happy with my choices!

  5. Money was a top deciding factor in the decision to be child-free. It just made so much sense. So far, I have splurged on vacations, bought my car outright (I’m not leasing…so I only pay gas/insurance) and I indulge in gourmet food and experiences (for example, paying for snowboarding, cruises, camping, etc) and buying nice things for spending time with friends (a nice BBQ, gorgeous crystal wine glasses, etc).

    As I’m getting older, I’ve begun researching about investing and I want my money to work for me so I’ll definitely be saving and starting up a decent portfolio soon. Hopefully, it’ll be worth $500,000 some day =)

  6. Some of the things I spend my extra money on: going to the movie theater, ingredients to make delicious homemade food, horse riding lessons, going to country fair in the summer, DVDs, and chocolate.

    On Food Network, there was a preimere of a new show called “Food Court Wars” a week ago. The teams are given borrowed food court restaurants and have to do better at running it than the other teams and the winning team is rewarded their own food court restaurant with free rent for a year. The team that lost in the final round of the show was a husband and wife who have four little kids and the wife was devastated about losing because she’d been working toward obtaining a food court restaurant for 10 years. I thought of all the money she spent raising her four youngsters and if she didn’t have the kids she would have obtained her restaurant a hell of lot sooner!

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