Remarkably, the new numbers do not include the cost for college or education beyond high school.  Between 1999–2000 and 2009–10, prices for undergraduate tuition, room, and board at public institutions rose 37 percent, and prices at private institutions rose 25 percent, after adjustment for inflation, according to the U.S. Department of Education, National Center for Education Statistics.

The cost of raising a new child is a sobering wake up call, especially since many families are already struggling with personal debt, depressed real estate values, unemployment and underemployment and other financial stresses.

The full report, Expenditures on Children by Families (2010), is available on the web at
www.cnpp.usda.gov. The Website also has an interactive calculator where families can enter in the number and ages of their children to obtain an estimate of the cost to raise a child.

Many parents may use the USDA statistics as a wake-up call to review and reconsider their current life insurance (or lack thereof) to ensure that there are adequate funds available to help meet the cost of raising a child through college.

In the United States, life insurance ownership is at a historic low.  A recent LIMRA study found 35 million underinsured middle market households.  The LIMRA report calculates the underinsured market by analyzing the number of U.S. households that admit they are underinsured and the number of households that think they might buy life insurance in the next 12 months.  This presents a tremendous opportunity for families who want to secure a strong financial future for their loved ones.

Perkins Loans are subsidized student loans with a fixed interest rate of 5% that does not start accruing until repayment starts, usually 9 months after graduation. Similarly, subsidized Stafford Loans, do not accrue interest while borrowers are enrolled in college. Students begin paying interest on subsidized Stafford Loans 6 months after graduation, when they begin repaying the loans.

That would be roughly 16% higher than an estimate earlier this year by the Federal Reserve Bank of New York and places the housing recovery at risk by saddling borrowers with significant debt that can limit their future buying power.

According to the not for profit College Board, published in-state tuition and fees at public four-year institutions average $8,244 in 2011-12, $631 (8.3 percent) higher than in 2010-11. Average total charges, including tuition and fees and room and board, are $17,131, up 6.0 percent. Published out-of-state tuition and fees at public four-year colleges and universities average $20,770, $1,122 (5.7 percent) higher than in 2010-11. Average total charges are $29,657, up 5.2 percent. Published tuition and fees at private nonprofit four-year colleges and universities average $28,500 in 2011-12, $1,235 (4.5 percent) higher than in 2010-11. Average total charges, including tuition and fees and room and board, are $38,589, up 4.4 percent.

In the coming decade, 60 percent of new jobs will require more than a high school diploma,” Obama told a crowd of students and supporters. “Higher education is not a luxury. It’s an economic imperative that every family in America should be able to afford.”

Parents all over the United States are using college savings plans to help meet the rising costs of college. And many other financial products, like juvenile life insurance are now available that can provide funds for college and beyond. According to college savings expert James Garfinkel, “saving for college now is the only way families will be able to save their children from a mountain of student loan debt and a lifetime of interest and principal payments.”