A few prominent bloggers like Budget Babe have started talking about the costs of having a child. Quite intimidating for married couples planning to have kids and singles is the infographic of the price-tag of $1,000,000 to have a child.

I think this number is blown out of proportion, even if empirically true, the $1,000,000 payment does not happen up front but over the the life of the child but it creates an illusion that $1,000,000 is a pre-requisite to being a parent.

I am pretty sure that our birthrate would be zero in such a case.

Let’s mathematically perform a very crude  net present value analysis on the cost of having a child :

Based on the infographic :

Maternity ward expenses : $7,000 – $24,000 [ But can take from Medisave ]
Age 0 – 6 : $1,200 – $1,700 per month – Average of $1,500
Age 6 …