How can we afford (another) kid? Schooling doesn’t need to break the bank

It’s far too common that young Armenian-American families struggle with the cost of raising children in America. If you want proper schooling for your kid in the North East or in California it is going to cost you dearly. Many struggle to make it all work. Stack the cards in your favor by moving to a more family friendly environment.

Cost of Schooling Comparison: Cookeville, TN vs. Los Angeles, CA for a Family Making $100,000 per Year

Imagine a family of four making $100,000 per year, considering a move from Los Angeles, CA, to Cookeville, TN. The differences in the cost of schooling can significantly impact their budget and quality of life, especially considering that Tennessee has no state income tax, while California’s state income tax can be substantial.

Daycare

In Los Angeles, daycare for two children can cost between $2,400 and $3,600 per month, which is 40% to 60% of their monthly take-home pay, approximately $5,833.

In contrast, Cookeville offers a much more affordable option. Daycare for two children ranges from $1,200 to $1,600 per month, which is only 20% to 27% of the monthly take-home pay.

Pre-K

Pre-K expenses in Los Angeles can add another $1,600 to $3,000 per month, bringing the total childcare costs to $4,000 to $6,600 per month, which is about 68% to 113% of their monthly take-home pay.

In Cookeville, Pre-K costs between $800 and $1,200 per month. Combined with daycare, the total is $2,000 to $2,800 per month, accounting for 34% to 48% of their monthly take-home pay.

K-12 Education

Public schools are free in both locations, but private schooling costs diverge significantly. In Los Angeles, private education for two children costs between $30,000 and $60,000 annually, which is 43% to 86% of the family’s annual take-home pay of $70,000.

In Cookeville, private schooling costs between $10,000 and $16,000 annually for two children, equating to 14% to 23% of their annual take-home pay.

College Tuition (In-State Public University)

College tuition at the University of Tennessee in Knoxville is approximately $13,000 per year, which is about 19% of the annual take-home pay. On the other hand, tuition at UCLA in Los Angeles is $15,154 per year, consuming about 22% of the family’s take-home pay.

Summary

For a family earning $100,000 per year, moving from Los Angeles to Cookeville can result in significant savings on educational expenses. Daycare in Cookeville costs 20% to 27% of monthly take-home pay, compared to 40% to 60% in Los Angeles. Pre-K in Cookeville costs 14% to 21%, compared to 27% to 51% in Los Angeles. Private K-12 education for two children costs between 14% and 23% of annual take-home pay in Cookeville, versus 43% to 86% in Los Angeles. College tuition is also more affordable in Tennessee. Additionally, Tennessee has no state income tax, allowing families to retain more of their earnings.

Over 18 years, the lifetime cost of raising a child (from daycare through high school) in Los Angeles can reach up to $900,000 per child, while in Cookeville, it can be approximately $300,000 per child. This represents a potential savings of $600,000 per child by choosing to live in Tennessee. These savings can greatly improve the family’s financial flexibility and quality of life, allowing for more opportunities to save, invest, and enjoy their income.