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Here’s What It Cost to Raise A Child In 1980

May 8, 2025 | Leave a Comment

Image source: Unsplash

There’s a popular belief that raising kids used to be dramatically more affordable, and depending on how you look at it, that’s not wrong. Back in 1980, the U.S. Department of Agriculture estimated the cost to raise a child to age 18 was about $70,000 (around $259,000 today, adjusted for inflation).

At first glance, that feels like a bargain compared to modern estimates that often top $300,000—and that’s before college.

But before you wish you were parenting in acid-wash jeans and shag carpet again, let’s take a closer look at what those 1980 dollars really meant, what parents actually spent money on, and how the parenting landscape has completely shifted in the decades since.

What That $70,000 Covered in 1980

The USDA’s estimate included expenses like food, housing, transportation, clothing, healthcare, childcare, and miscellaneous costs (think toys, activities, birthday parties, etc.). But if you were a parent in 1980, your spending would have looked wildly different from today’s average family.

Let’s break down some of the biggest categories.

Food: Home-Cooked and Modest

In 1980, families spent around $15,000 (in that year’s dollars) on food for a child from birth to age 18. That included everything from Cheerios to school lunches. Convenience foods existed but weren’t the norm. Eating out was an occasional treat, not a weekly routine.

There were no GoGurts, organic snack pouches, or sushi-for-kids birthday parties. It was casseroles, leftovers, and peanut butter sandwiches and no one blinked.

Housing: Less Square Footage, Fewer Gadgets

Housing took the biggest bite out of family budgets even back then, totaling around $25,000 of the total estimate. But what home looked like in 1980 was different. The average new house was just over 1,700 square feet (compared to over 2,500 square feet today), and kids typically shared bedrooms.

Homes didn’t have smart thermostats, playrooms, or finished basements filled with Montessori-inspired toys. And screens? Maybe one TV, no tablets, no streaming subscriptions. Raising a child didn’t come with an electronics bill.

Childcare: Optional for Many Families

This is one of the biggest differences between then and now. In 1980, fewer women worked outside the home full-time. Childcare wasn’t a line item in every family’s budget. For those who did use daycare or babysitters, it was far less expensive—roughly $1,000–$2,000 per year, compared to $10,000–$15,000 today.

Today’s dual-income households often depend on childcare to function, which can add up to more than college tuition in many states.

Clothing: Basic and Budget-Conscious

There were no toddler influencers in 1980. Parents spent about $5,000–$6,000 on clothes from birth to age 18, often buying practical outfits that could be handed down or patched up. Sears, JCPenney, and homemade sweaters ruled the day. Designer baby shoes and matching family outfits weren’t even on the radar.

Healthcare: Affordable and Less Complex

Healthcare for children cost less in the 1980s—not just in raw numbers but also in scope. There were fewer specialist visits, less emphasis on expensive orthodontics, and lower insurance premiums (especially for families with employer-provided plans).

Mental health services, therapy, and sensory evaluations weren’t yet mainstream. That’s not necessarily a good thing—but it was definitely cheaper.

The Hidden Costs That Didn’t Exist Yet

There are entire categories of spending that simply didn’t exist for parents in 1980:

  • Technology: No smartphones, tablets, data plans, apps, or monthly tech subscriptions.
  • Extracurricular arms race: Organized sports existed, but there wasn’t a club team, travel league, or private coaching for every interest.
  • Birthday and holiday inflation: Most birthday parties were at home, not rented trampoline parks or destination events.
  • College prep from birth: Few parents were enrolling their toddlers in enrichment programs with Ivy League dreams in mind.

In short, childhood was cheaper because expectations were lower, and so were the cultural pressures on parents to deliver Pinterest-worthy lives.

Why Comparing Generations Isn’t Apples to Apples

It’s tempting to compare costs across decades, but it’s more complicated than slapping an inflation calculator on an old receipt.

In 1980, a one-income household could often sustain a middle-class lifestyle. Health insurance was cheaper. College tuition was manageable without a 529 plan. Families didn’t spend $100 on Halloween costumes or feel guilty for skipping family photo shoots.

But incomes have changed, job stability has shifted, and the culture of parenting itself has become more commercialized, competitive, and consumer-driven.

Today’s parents aren’t just raising kids. They’re also managing tech boundaries, mental health access, cyberbullying, standardized test prep, and an endless stream of “must-have” products marketed as essentials.

So, Was It Really Easier Then?

In some ways, yes. Parenting in 1980 came with fewer financial and emotional expectations and Instagram posts to measure up against.

But that doesn’t mean modern parents are doing it wrong. Today’s generation is more aware of emotional wellness, developmental needs, and the power of positive parenting. It’s just harder (and more expensive) to balance those values with real-world demands.

So, while your parents might shake their heads at what a birthday party costs today, they also didn’t have to install screen-time filters or explain social media to a third grader.

What’s one parenting expense you wish you could go back in time and erase from today’s budget?

Read More:

Can You Afford to Have Kids in 2025? Here’s What It Really Costs Per Year

The Unseen Burden: 10 States Where Childcare Costs Are Exploding

Filed Under: Parenting Tagged With: 1980s parenting, cost of raising kids, Family Budgeting, generational comparison, inflation, modern parenting costs, parenting history

10 Surprising Reasons Millennials Are Struggling to Purchases Homes

May 14, 2024 | Leave a Comment

millennials struggling to purchase homes

The dream of owning a home has long been ingrained in the American ethos, symbolizing stability, independence, and success. However, for many millennials, this dream seems increasingly elusive. According to Statista, since 2011, the median price of an existing single-family home in the United States has increased by around 50 percent. Despite being one of the largest demographic cohorts in the workforce, millennials are facing significant hurdles when it comes to purchasing homes. While factors such as student debt and rising housing costs are well-documented, there are several surprising reasons contributing to millennials struggling to purchase homes.

1. High Interest Rates

interest rates

According to Statista, in the United States, interest rates for all mortgage types started to increase in 2021. This was due to the Federal Reserve introducing a series of hikes in the federal funds rate to contain the rising inflation. In the second quarter of 2023, the 30-year fixed rate reached 6.49 percent, up from 5.24 percent in the same quarter of 2022.

High mortgage interest rates significantly impact the affordability of purchasing a home, as they directly influence monthly mortgage payments. When interest rates are high, potential homebuyers may find themselves priced out of the market or forced to settle for smaller, less desirable properties. The higher the interest rates, the more expensive borrowing becomes, reducing the purchasing power of prospective buyers and increasing the overall cost of homeownership. Ultimately, high interest rates are one of the main reasons millennials are struggling to purchase homes.

2. Limited Inventory

limited inventory

With many Boomers choosing to age in place, many homes are not being put on the housing market. Limited supply is also further driving up the price of homes, often resulting in bidding wars. Millennials who need financing are usually the ones to lose out, often outbid by buyers who can present deals that are all cash with no contingencies. This has resulted in a frustrating homebuying experience for many millennials.

3. Changing Job Market Dynamics

millennials struggling to purchase homes

The modern job market is characterized by gig economy jobs, freelance work, and contract positions. While these types of employment offer flexibility, they often lack the stability and benefits necessary to qualify for a mortgage, making it harder for millennials to secure home loans. The rise of the gig economy has led to irregular income streams for many millennials. Lenders traditionally favor steady, predictable income, making it difficult for those in gig economy roles to meet mortgage requirements.

4. Skyrocketing Cost of Healthcare

thinking about home

Healthcare costs in the United States have been steadily rising, eating into millennials’ disposable income and making it harder to save for a down payment. Many millennials don’t have enough emergency fund savings to cover unexpected medical bills. Furthermore, many millennials struggle to pay their deductibles, especially since many have high-deductible plans. Additionally, the burden of medical debt can adversely affect millennials’ credit scores, further hindering their ability to qualify for mortgages. Altogether, rising medical costs are further compounding the issues of millennials struggling to purchase homes.

5. Delaying Marriage and Children

delaying marriage

Millennials are delaying marriage and children at unprecedented rates, reshaping traditional notions of family and homeownership. Factors such as pursuing higher education, establishing careers, and prioritizing personal fulfillment have contributed to this trend. Additionally, economic uncertainty, high housing costs, and mounting student loan debt have made millennials hesitant to take on the financial responsibilities associated with starting a family. The shift towards delaying marriage and children has also impacted the housing market, as many millennials opt for rental accommodation or delay homeownership altogether.

6. Student Loan Debt Crisis

can't afford home

Roughly one in five Americans have student loan debt. Today, most students graduate with an average of $30,000 in loans. Millennials are shouldering unprecedented levels of student loan debt, which can severely limit their ability to save for a down payment and qualify for affordable mortgage rates. The weight of this debt often delays homeownership or forces millennials to settle for less desirable housing options.

7. Rising Cost of Living

rising cost of living

While wages have stagnated in many sectors, the cost of living continues to rise, particularly in housing markets with high demand. In 2023, inflation rose to over 9%, a forty-year high. At that time, it was estimated that Americans would have to spend an extra $11,434 to maintain the style of living that they enjoyed in 2021. The discrepancy between income and expenses makes it increasingly challenging for millennials to afford homes, particularly in metropolitan areas.

8. Impact of The Great Recession

impact of the Great Recession

Many millennials entered the workforce during or shortly after the Great Recession of 2008, which had a lasting impact on their financial stability. High unemployment rates and stagnant wage growth during this period delayed millennials’ ability to save for down payments and recover financially, setting them back in their quest for homeownership. As a result, many millennials feel behind in their career and finances. No generation before has been saddled with so much financial baggage.

9. Mistrust in The Housing Market

millennials struggling to purchase homes

Millennials harbor a deep-seated mistrust in the housing market, stemming from the scars of the 2008 financial crisis. Many witnessed the devastating consequences of predatory lending, subprime mortgages, and the subsequent collapse of the housing bubble, leading to widespread foreclosures and financial ruin. This traumatic experience has left a lasting impression on millennials, shaping their perceptions of homeownership and investment. As a result, millennials approach the housing market with caution, seeking transparency, stability, and fair practices from lenders and real estate professionals. The legacy of the housing crisis continues to influence millennials’ decisions, prompting them to thoroughly research and scrutinize housing options before committing to a purchase.

10. Environmental Concerns

increased housing cost

Millennials are more environmentally conscious than previous generations, leading many to prioritize eco-friendly and sustainable living options. They seek energy-efficient features such as solar panels, smart thermostats, and eco-friendly building materials to minimize their carbon footprint and reduce utility costs. Additionally, millennials gravitate towards homes located in walkable neighborhoods with access to public transportation, bike lanes, and green spaces, promoting a more sustainable lifestyle. Many are also drawn to properties with low-maintenance landscaping and water-saving fixtures, aligning with their desire for environmentally conscious living. However, homes with green features often come with a premium price tag, making them less affordable for young homebuyers with limited financial resources.

Obstacles to Homeownership

millennials struggling to purchase homes

The path to homeownership for millennials is fraught with challenges that extend beyond the well-documented issues of student debt and rising housing costs. From shifting societal preferences to structural changes in the economy, millennials face a unique set of obstacles that make purchasing a home increasingly difficult. Addressing these challenges will require innovative solutions from policymakers, lenders, and the real estate industry to ensure that homeownership remains within reach for this generation.

Read More

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Teri Monroe
Teri Monroe
Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.

Filed Under: Money and Finances Tagged With: housing market, inflation, Millennials, mortgage rates

Why Has Fast Food Become So Expensive?

August 28, 2023 | Leave a Comment

Why Has Fast Food Become So Expensive?

Our family hadn’t had our favorite fast food, Chipotle, since the pandemic began two years ago. When my daughter asked for Chipotle for one of her birthday meals this year, we happily bought it. But boy, were we surprised by the experience! We were shocked to hear our final total for four meals–$53! We were left wondering, why has fast food become so expensive? Our order total was significantly higher than when we bought Chipotle two years ago.

Why Has Fast Food Become So Expensive?

Fast food prices are increasing due to two variables.

Higher Priced Food Items

The United States is currently experiencing high inflation not seen in 40 years. The price of everything is going up including gas and basic goods like the food supplies fast-food chains rely on. When basics like lettuce, tomatoes, and meat increase, most fast-food chains have no choice but to pass those costs onto consumers.

Labor Shortage

In addition to higher food prices, fast food chains are experiencing a labor shortage, which has a ripple effect on the restaurants.

Shorter Hours

Some fast-food restaurants have cut their business hours because they don’t have enough staff. If the restaurant is open fewer hours a day, fewer workers are needed. However, the restaurant is then bringing in less money.

Fewer Items on the Menu

Some restaurants are offering fewer items on the menu to consolidate their business. For instance, Burger King is focusing on “menu simplification, removing low-volume items” (Insider). This streamlines the number of ingredients they need to buy and store.

Higher Wages

Finally, most fast-food restaurants have no choice but to raise wages to attract employees. Many chains have had to raise wages by 10 to 15%, which affects their bottom lines and requires them to raise food prices.

How to Combat High Fast-Food Prices

In our busy society, more and more families rely on fast food. However, if you no longer can afford fast food regularly, you have some other options:

Make Slow Cooker Meals

Why Has Fast Food Become So Expensive?

If you’re too tired to cook when you come home from kids’ activities or work, put a meal in the slow cooker in the morning before you leave. When you come home, a hot meal will be waiting for you.

Have Freezer Meals Ready

Another idea is to make meals to freeze. Thaw them the night before and reheat them when you get home. If you don’t have time for that, buy ready-made, family-size freezer meals from the store. They’re much cheaper than buying the whole family fast food.

Bulk Cook on the Weekends

Or, you could make several meals on the weekend. Then, during the week, reheat and serve. For busy nights when you won’t be home to eat, pack sandwiches and chips. It’s not fast food, but it is quick and easy.

Final Thoughts

Why has fast food become so expensive? The simple answer is that inflation is hitting all aspects of our lives. If you can no longer afford fast food regularly, you can try some other strategies to get a meal on the table quickly. Remember, inflation doesn’t last forever; eventually, you’ll be able to once again afford your favorite fast-food meal without such a punch to your wallet.

Read More

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Save More Money with the Best Restaurant Deals and Apps for Families

10 Steps to Create a Successful Stay-at-Home Mom Budget

The Cost of Living in 1972 Was Surprisingly Low

Melissa Batai
Melissa Batai

Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking. She resides in Arizona where she dislikes the summer heat but loves the natural beauty of the area.

Filed Under: Money and Finances Tagged With: eating at home, eating out, fast food, inflation

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Basic Principles Of Good Parenting

Here some basic principles for good parenting:

  1. What You Do Matters: Your kids are watching you. So, be purposeful about what you want to accomplish.
  2. You Can’t be Too Loving: Don’t replace love with material possessions, lowered expectations or leniency.
  3. Be Involved Your Kids Life: Arrange your priorities to focus on what your kid’s needs. Be there mentally and physically.
  4. Adapt Your Parenting: Children grow quickly, so keep pace with your child’s development.
  5. Establish and Set Rules: The rules you set for children will establish the rules they set for themselves later.  Avoid harsh discipline and be consistent.
  6. Explain Your Decisions: What is obvious to you may not be evident to your child. They don’t have the experience you do.
  7. Be Respectful To Your Child: How you treat your child is how they will treat others.  Be polite, respectful and make an effort to pay attention.
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