For example, let’s start in Scott’s hometown, Natick. A single person needs $29,635 a year to get by. A couple of adults, $38,450. When the first child is born, economic independence is achieved at $53,292. With the second infant, it goes to $72,637. If they are in pre-school, the cost goes even higher, needing $75,519. Costs come down a bit when the children hit school age. Once both are in school, economic independence is reached at $60,061 (and a second parent can get back to work a little easier.) Once the teens can be on their own after school, the figure drops to $43,744 (and maybe the kid can work a little, too!) You get the picture. Kids are very expensive, especially when they are little.
Now, the same figures for Cambridge: Expenses for children are higher there. One infant: $62,504; two infants: $80,080; two pre-schoolers: $82,972; two school aged: $67,251; two teenagers: $50,698.
Any increase in basic expenses, or any loss of income, can send a family economy into turmoil. High housing costs are at the center of this problem. Some people seek economic security in purchasing a house, with the idea that this fixes housing costs (except for taxes and utilities) and allows for lower housing costs once the mortgage is paid. Others seek security in the freedom to leave a rental and move to cheaper quarters.
Did you rent or own during those expensive years, when children are young? Do you have any advice for people with young or hypothetical children?