Report: Costs of raising a child reach $235,000

9:23 AM, Jul 23, 2013   |    comments
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MINNEAPOLIS - While the royal baby will likely never have to worry about his financial future, for the rest of us, there's a number attached to the cost of raising a child -- $235,000.

That's according to a 2011 Department of Agriculture report, and that's just for the basics -- food, clothing and shelter.

On the face of it, it's an overwhelming number, but when broken down, here are a few tips for new parents.

Diapers alone can cost thousands and there are days when a new parent needs a dozen. Washington-based Consumers' Checkbook found some of the cheapest deals at Target and bulk stores like Sam's Club and Costco, but the best deals were online.

Amazon.com has Amazon Moms and while there's an up-front fee, according to Checkbook it's well worth it.

If you have a retirement account or life insurance, be sure to add your child as a contingent beneficiary in case something happens to both parents.

Update your home insurance policy if you plan to add a room for the little pumpkin.

The nursery renovation at Kensington Palace reportedly cost $1.5 million.

The one discount you might be able to bank on is your car insurance, typically a mini-van will run you less than a sedan.

That $235,000 doesn't even include college tuition, which you can save for when the baby arrives through a Minnesota College Savings Plan or 529. Any earnings on the account are tax-free as long as the money is used for schooling.

All expenses, the new royal addition will never know, having been born into a life where the money is taken care of.

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