BOSTON, July 11,
2024 /PRNewswire/ -- A new study by CardRates.com is
shining a light on the financial realities of child care in
the United States, revealing
significant gaps in Americans' perceived expenses of a baby's first
year and the actual costs.
"It may be impossible to estimate exactly how much you will be
spending on your child's first year of life, but it is definitely
worth trying to get as close as you can," said Erica Sandberg, CardRates.com Finance Expert.
"It's best to overestimate the costs so you have money left over
rather than underestimate them and then fall short."
Methodology
To determine where the biggest misperceptions lie, the study
analyzed five key expenses associated with a baby's first year —
day care, diapers, formula, food, and new clothing. Those expenses
were then compared to survey responses from more than 2,000
Americans, asking them to estimate the annual cost of the five
child care expenses mentioned above.
Perceived vs. Actual Day Care Costs, State by State
The study found that residents in over half of the states (56%)
underestimated their average annual day care cost. The national
average is $13,266. Survey
respondents, however, estimated it to be $12,055, a 10% shortfall.
The 5 States Where Residents Most Underestimated
Annual Day Care Costs:
- Massachusetts
- New York
- District of Columbia
- Hawaii
- Colorado
The 5 States Where Residents Most Overestimated Annual Day
Care Costs:
- Oklahoma
- West Virginia
- Georgia
- Louisiana
- Pennsylvania
The Price Tag of a Baby's First Year: Perception vs.
Reality
Astonishingly, all states underestimated the financial costs
of having a baby by 37%. Survey respondents estimated the cost
at $15,177, while the actual figure
is $22,111. Respondents from
New Hampshire and Massachusetts were the closest, missing the
mark by $2,099 and $2,769, respectively. In contrast, respondents
from Mississippi and Alabama underestimated the cost by over
$12,000.
For more information about the study and its findings, visit
CardRates.com.
About CardRates
CardRates.com is dedicated to helping individuals make informed
financial decisions by providing expert guidance and up-to-date
information on a range of financial topics. From credit cards to
family finances, CardRates.com is your trusted source for
navigating your financial journey with confidence.
Media Contact
Kyle Beaman
380233@email4pr.com
703-596-1353 ext. 128
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SOURCE CardRates.com