At 10, Grace Morgan is a young fashionista and takes pains to dress in the latest styles. But her mom, Amy, works part-time and her husband was recently laid off, leaving little room in the family budget for designer-brand clothes.
So Grace didn’t ask her mom to open her wallet this fall to buy clothes. Instead, she sold a stack of her own old jeans and shirts at a rummage sale and paired the proceeds with discount coupons to get the stylish jeggings and tops she wanted for school, says her mother, of Lake in the Hills, Ill. Grace is learning “we have to make choices with our money,” she says.
The cost of raising kids is continuing to rise. A middle-income family can expect to shell out nearly a quarter of a million dollars, or $222,360, to raise a baby born in 2009 to age 18, according to the Department of Agriculture. That is up about 1.4% from 2007, before the recession began–and it doesn’t include college costs.