Additional cost of children- PROBLEM RESOLVED- DATA ERROR
Not sure which other topic this would fit, so I am posting here.
Please clarify how the child cost factor is used. My understanding is that it would be multiplied times the living standard per adult to figure the additional consumption used by the child. For example, if the living standard per adult is 50,000 and the child factor in a given year is 0.5, the total consumption for 1 adult and 1 child would be $75,000 in that year.
If this is correct, then I am seeing a calculation error. My spouse factor is 0.3 (since I did not break out housing). After my child is 18, the consumption amount for each year = 1.3 * living standard per adult; so it checks out. However, when my child is 17, with a child factor of 0.7 and the same spouse factor of 0.3, living standard per adult is $50,000 and consumption is $73,000. This does not compute. If my understanding is correct, first adult would be $50,000, spouse would be $15,000, and child would be $35,000 for total consumption of $100,000. If child ratio is applied to lower-cost adult consumption only ($15,000), then child cost would be $10,500 for a total of $75,500.
To compound things, when I went from version 60 to 62, there is a discontinuity in the living standard and consumption after 10 years. I set the child cost factor to increase slightly each year so consumption increases each year for the first ten years with a constant living standard. In the 11th year, the living standard jumps up and the consumption drops. After that, the living standard is constant and consumption increases each year until my child is 18. The only thing I can see causing this is a problem with the child cost calculation.
Please explain how the child cost factor is used in the calculations so I can check my results. Thanks.