Kevin O’Leary: This Is How Much It Costs To Raise A Child

Kids are expensive. Kevin O'Leary gives his favorite savings tip.

It’s no secret that having children is a big financial undertaking — even mega-rich financier and star or ABC’s “Shark Tank” Kevin O’Leary says so.

“Of course it’s wonderful to have a family, and I endorse the idea forever,” O’Leary tells CNBC Make It. “It’s wonderful to have children grow up with you, watch them age, become part of a family. It’s fantastic. But they’re not free. They’re very expensive.”

Indeed, according to the most recent available data from the U.S. Department of Agriculture, it can cost around $233,610 to raise a child from birth through age 17, CNBC Make It previously reported. However, that figure can vary greatly, and higher-income families can expect to spend around $372,210 while lower income-families spend around $174,690.

O’Leary, who believes the cost of having kids is more likely to be about $700,000 overall, has two children: Savannah, 25, and Trevor, 22. He recalls when he had his first child how surprised he was, in particular, at just the cost of children’s clothing.

“They grow out of them every 90 days,” O’Leary says of kids clothes. “What a stupid way to waste money. There’s got to be a better strategy.

“I said this to my wife on the second child — because we didn’t have any money when we had our second kid — I said, ‘Look, we’re unlucky. Our first one was a girl our second is a boy. We can’t put the boy in the girls clothing.’”

So save money wherever you can, O’Leary says, like buying unisex clothing so they can easily serve as hand-me-downs.

“Start to think about t-shirts and pants that go for both sexes when they’re young,” O’Leary advises. “The kids don’t care. And that’s one way to save money.”

Another saving tip O’Leary recommends is that anytime you pick something up that you’re going to buy (for yourself or your child) say to yourself, “Do I really need this?” Often it’s just “crap” and a waste of money, he says.

Of course, it’s ideal to plan for big life events. In general, when it comes to saving, experts recommend that in your 20s, you should aim to save 25 percent of your overall gross pay, and by age 30, have the equivalent of your annual salary saved.

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Kevin O’Leary’s favorite savings tip for when you have kids | CNBC Make It.

[faheempatel]

Kevin the type of dude to ask for 20% equity in his child’s future for the cost of raising them

[samaleks]

Lol “you have to pay for their upkeep” — take those kids to the mechanic every once in a while, make sure they’re running properly

[chicken]

i was thinking to have one until the fortnite dance

[slouischarlesYT]

Above all else, remember, marriage is a contract and so are kids.

[noahbauserman]

Why is the department of agriculture estimating the cost of being a parent that doesn’t make any sense

[sharonh]

I saved tons of money on kids clothes and toys shopping at thrift stores. He’s right, they really only wear things for a season and they normally grow out of them rather than wear them out. I shopped/looked often and only picked the nicest clothes and brands. My offspring were always the best dressed.

[pizzamasterf]

That's actually smart advice doe 😂

[plumbersunited]

People ask me when will I have kids? I tell them, when I win the lottery

[januzairamli]

You're right, they are wonderful! 0:20 never mind...

[PimpinBig]

I’m too selfish to have kids. I like spending my hard earned money on myself, and my wife. A kid just gets in the way.

[kitaroworld]

If you don't have money and have kids, don't complain to us or the government. live with your decisions.

[natep]

After the cost is revealed in the beginning, I started sneezing. I kept sneezing for a good 10 seconds and i missed half of what Kevin said. That's when i knew i don't want children.

[conorburby]

I like Kevin but if gonna make these videos I don’t just want a little story and two facts, do like a ten minute one with ins and outs tbat is interesting maybe goes into each category. Kinda sick of these 2 min videos

[KpopNiDontStop]

Honestly when I was in elementary school I had an idea that kids cost as much as a house LOL.

[JosePena-oebe]

That baby watching Mr. Wonderful on TV was hilarious

[KpopNiDontStop]

I don't know whats more sad is this only has 14k views in a year and there will be people having unplanned kids not even prepared and never watched these types of videos.

[Fairly_Reasonable_Investor]

"because I didn't think about it" -- key phrase here

[fairlyfrugalvegan]

So Kevin was struggling financially while raising his kids but still came out rich. Well that gives me hope to know I’ve got plenty of time!

[ahmadaburahma]

Wait, kevin didn’t have any money when he had his second child, really 😯?

[Usernameusername]

I love Mr. Wonderful & he us hilarious 🤣🤣🤣🤣