BabyCenter® Cost of Raising a Child Report: Is Keeping Up With the "E-Joneses" Putting Moms' Financial Health in Jeopardy?

SAN FRANCISCO, Nov. 4, 2014 /PRNewswire/ -- BabyCenter.com, the #1 pregnancy and parenting digital resource, today released its 2014 U.S. Cost of Raising a Child report, which examines the rising cost of having a baby. Nearly 1,100 BabyCenter moms completed the survey, which found that parents spend an average of $13,000 per year on each child. So it's not surprising that 2 out of 3 moms are worried about having enough money to raise their kids – an 11 percent increase since 2013.

"We're living in a socially transparent time where everything we do, eat, buy, or like is visible immediately," says Linda Murray, BabyCenter Global Editor in Chief. "The implied judgment of social media puts a lot of pressure on moms to not only make themselves and their families look good but appear prosperous, too."

Keeping Up With the "E-Joneses"

The constant influx of updates on social media sites from friends and family about new homes, cars, vacations, and clothes is taking its toll on moms. Nearly 60 percent feel some level of pressure to appear well-off on social media due to feelings of envy and embarrassment about their own financial situation.

Trying to keep up with their family and friends may be encouraging some not-so-great financial behavior, BabyCenter found. Nearly 30 percent of moms say credit cards are their most common method of payment, and two-thirds of moms have $25 or less in their wallet at any given time.

"With social media and constant marketing, there's a lot of pressure on moms to feel like they need to buy the latest and the greatest products in order to do right as a parent," said Carmen Rita Wong, a BabyCenter financial expert. "But sometimes it's just not wise to spend the extra money."

Parenting's Unexpected Line Items

For many moms, the birth of a first child spurs new financial actions: 70 percent of moms purchased or upgraded insurance, 65 percent opened a new bank account, and 60 percent improved their home. Home upgrades included new paint (83 percent), flooring (46 percent), and non-baby furniture (37 percent).

"When you're expecting, it's not just about buying baby gear, toys, and clothes," said Wong. "Parents need to prep all areas of their lives. Is the car you're driving safe? Do you need to upgrade your health insurance? – and often, parents don't account for these 'extra' expenses." Meeting with a financial planner or using a budget tool such as BabyCenter.com's Cost Calculator is a great way for new parents to get insight into their finances and start planning.

Death of the Allowance?

Since 2011, the number of moms giving their children a monthly or weekly allowance declined nearly 10 percent. Sixty percent of moms said they don't give an allowance because their children don't know the value of a dollar and think "money grows on trees."

"We so rarely handle cash these days and our kids see us swiping at registers, so it's easy for children to not be clear how money works and the limits that exist," said Wong. "Start early and often with budgeting lessons – give kids a small shopping budget or challenge them to not spend more than a certain amount on everything from a toy they would like, an app, or even cereal. And make sure to not go over budget! Once you give an allowance, it's even more important to teach the lesson of limits."

On the bright side, 28 percent of moms who still give an allowance now give more. The new average weekly allowance is $5.65 – up $1 since 2011.

For more information on BabyCenter's 2014 U.S. Cost of Raising a Child report, please visit http://www.babycenter.com/0_money-talk-1-100-moms-on-the-ups-and-downs-of-making-ends-me_10398635.bc.

About BabyCenter® LLC
BabyCenter® is the voice of the 21st Century Mom® and modern motherhood. It's the #1 pregnancy and parenting digital destination worldwide, reaching more than 40 million moms monthly in 11 languages across 14 owned and operated properties from Australia to India to China. In the United States, 7 in 10 babies born last year were BabyCenter babies. BabyCenter is the world's partner in parenting, providing moms everywhere with trusted advice from hundreds of experts around the globe, friendship with other moms like them, and support that's remarkably right at every stage of their child's development. BabyCenter also works with some of the world's most prominent brands and institutions to provide life-stage marketing solutions and a direct line to highly engaged moms. BabyCenter established a Global Giving Program and partners with esteemed organizations to help make motherhood safer for all women. BabyCenter is a member of the Johnson & Johnson family of companies.

SOURCE BabyCenter(R) LLC