[kree10]

I don't know; this hypothetical family of 4 making $200k would have about $12k/month in take-home pay. After rent, utilities (including cell phone bills with data plans for 4), food and clothing, 2 cars (loan payments/gas/insurance/maintenance), college tuition (paying it or saving for it), orthodontics, etc., it could be near "living paycheck-to-paycheck" territory.

[usaar333]

Can you provide a breakdown there?

I'm doubtful it is that bad, from both how high this income is compared to the median as well as personal numbers. I blow $1,650 a month, before auto/rent, with my pretty comfortable life. Even if children were at the same level of expenses (they are realistically maybe half that), family non-auto/rent is $6,600. The two cars throw in another $1000/month; housing is $2,200. That's about $9800 a month or $2,200/year in savings (18% rate)

[kree10]

I think you're underestimating child-related expenses. Since we're talking about both parents working full-time, just take the cost of child care: http://www.naccrra.org/randd/data/docs/CA.pdf says this California family with 2 kids could be spending over $2000/mo on this alone, depending on how young they are.

I'm not saying they won't necessarily have anything left, but $12k/mo still may not leave them much.

[usaar333]

I agree the family is taking more of a hit when the kids are young. However, this should amortize away as child care costs drop radically once the child is in school.

I checked http://www.babycenter.com/cost-of-raising-child-calculator and they shoe cost of raising a child to be $1,525/month for 18 years for the highest income.