Kid Expenses

Kid’s Cars – Our 6 kids were ages 10 to 18 in 1983 and we bought an old Dodge Colt for them to use for $200. We also got an old Nissan Sentra for $200

In 1987, my oldest daughter graduated Dental Hygiene, an bought her own car. The other 5 kids were 14 to 20. By 1990, cars for the kids were costing $5000. We bought used Chevy Luminas, Ford Taurus and a Buick Special. These cars lasted through graduation for the kids.

Education Expense – The kids all worked through high school and college and made all their spending money.

Most went to the local colleges with low tuition costs. Three of the kids went away to college. One was a Resident Assistant and got free room and board. The youngest two had us pay their room and board.  Nobody had student loans to pay off.

The Weddings - The kid’s weddings began in 1987 and ended in 2003 and included Lisa age 22 in1987, Michelle age 24 in 1991, Jean age 22 in 1993, Tim age 24 in1997, Julie age 29 in 1998 and Colleen age 30 in 2003.  We established a budget of $5000 for each wedding and the kids got creative and planned the weddings themselves. We doubled the budget for the wedding in 2003 to have a final “blowout”.

House Expense – This is the one expense we made money on.  The sum of what we paid in mortgage payments over 36 years was more than covered by the increase in value for each home.

We bought our first home in 1965 for $16,000 and sold it in 1975 for 36,000. We assumed the 4% mortgage for $750. Our mortgage payment was $150 per month or $1800 a year for a total of $16,200 for 9 years. Our home value appreciation was $20,000.

We bought our next home in 1975 for $55,000 with a 6% mortgage and sold it in 1983 for $85,000. Our mortgage payment was $300 per month or $3600 a year for 8 years for a total of $28,800. Our home value appreciation was $30,000.

We bought our current home in 1983 for $137,000 with a 13% mortgage we refinanced twice. This home is currently worth $600,000 in 2019. Our home mortgage was paid off in 2001. Our mortgage payment was $1400 per month or $16,800 per year for 18 years for a total of $235,200. Our home value appreciation is $364,800.

Our actual expense for home ownership since 1965 is zero. We recouped all mortgage payments including interest costs with home value appreciation.  We spend $112,000 on upgrades, so our net profit is $252,800 for paying 36 years of home mortgages.

Norb Leahy, Dunwoody GA Tea Party Leader