The Kid Spending Spectrum

Eileen Daspin and Ellen Gameran:

With the debate about the country's wealth gap heating up again, pampered kids provide some of the most dramatic examples, from toddlers in $800 strollers to 10-year-olds with cellphones. But for many families, drawing the line between attentive parenting and extravagance is a tough call; even parents who are relatively strapped will go to great lengths for their children. And though millions can't afford the government's child-cost estimate, there is no question that many others are spending far more without viewing it as extreme.

To assess how relatively routine expenses, as well as more excessive ones, can contribute to the total cost of raising a child, The Wall Street Journal deconstructed the government's approach and recalculated it using a different range of costs.

Escalating kid spending is more rampant among wealthier households, so we used the government's top-third income bracket as a starting point. We also added some costs that aren't included in that government calculation, such as college-savings plans, which a growing number of households are setting up for their kids.

Posted by Jim Zellmer at March 3, 2007 6:02 AM
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