If the average cost of raising a child is $16,900 per year, and the cost of living is $28,500 without a child, which levels of education would provide the income to comfortably raise a child? Check all that apply.
* associate's degree
* high school diploma
* doctoral degree
* bachelor's degree
* some college
Answer (2)
The education levels that provide sufficient income to comfortably raise a child, based on a calculated annual cost of $45,400, are an Associate's degree, Bachelor's degree, and Doctoral degree. A High School diploma or some college education would not be sufficient. Therefore, the applicable answers are Associate's degree, Bachelor's degree, and Doctoral degree.
;
Calculate the total cost of living with a child: $28 , 500 + $16 , 900 = $45 , 400 .
Compare the median annual wage for each education level to $45 , 400 .
Identify the education levels where the wage is greater than $45 , 400 .
The education levels that provide sufficient income are Doctoral degree, Master's degree, Bachelor's degree, and Associate's degree: Doc t or a l d e g ree , M a s t e r ′ s d e g ree , B a c h e l o r ′ s d e g ree , A ssoc ia t e ′ s d e g ree .
Explanation
Calculate total cost of living with a child First, we need to determine the total cost of living with a child. This is the sum of the cost of living without a child and the average cost of raising a child.
Calculate total cost The cost of living without a child is $28 , 500 and the average cost of raising a child is $16 , 900 . Therefore, the total cost of living with a child is:
$28 , 500 + $16 , 900 = $45 , 400
Compare wages with total cost Next, we need to check which education levels provide a median annual wage greater than $45 , 400 .
Check each education level Here's the breakdown for each education level:
Doctoral degree: \$45,400"> $110 , 160 > $45 , 400 (True)
Master's degree: \$45,400"> $76 , 800 > $45 , 400 (True)
Bachelor's degree: \$45,400"> $78 , 020 > $45 , 400 (True)
Associate's degree: \$45,400"> $55 , 870 > $45 , 400 (True)
Some college: \$45,400"> $37 , 770 > $45 , 400 (False)
High school diploma: \$45,400"> $39 , 070 > $45 , 400 (False)
No HS diploma: \$45,400"> $21 , 510 > $45 , 400 (False)
Identify sufficient education levels Therefore, the education levels that provide sufficient income to comfortably raise a child are: Doctoral degree, Master's degree, Bachelor's degree, and Associate's degree.
Examples
This type of calculation is useful for financial planning. For example, a young adult considering whether to pursue further education can use this analysis to determine if the potential increase in income will offset the costs of raising a family. By comparing the median wages associated with different education levels to the cost of living and raising a child, they can make informed decisions about their education and career paths. This ensures they can provide a comfortable life for their future family.
