They say to raise a child from birth to the age of 18, a parent will spend approximately $233,610 per child. Most parents can expect to double that amount since the average number of kids per family in 2017 was 1.9. Also, due to expensive housing markets, many millennials are moving back home to save money after college. At the end of the day, I wouldn’t bank on the number above on being entirely accurate.
Let’s break the numbers down even further. The average 20-something with student loan debt is looking at having an average balance of about $22,135 at time of graduation. If married, then double that number. Match that with what a college graduate can expect to earn at their first job ($50,390 ), and it’s easy to see how simultaneously starting a family and saving for a down payment may seem overwhelming.
Millennials are feeling as if they need to choose one at a time due to finances, and, in many markets, affording to do both does seem out of reach.
So, what has caused this significant drop in birth rate? Is it economics? Is it student debt? Other life choices? Read the recently published Zillow report to gather more insights.