I personally think digital is cheaper, but it could probably be debated either way. if you buy a completely coordinated set of papers, embellies/stickers/etc for a paper page, that's roughly the same cost as a digital kit. but the digital kit never gets 'used up'....it's there forever. so that part is a savings.
With digital, you have the startup cost of software (if you don't already have it), and depending on what program you get, you could spend as little as $30 or as much as $1500. I spent $70 on my copy of photoshop elements a couple years ago. you can get a LOT of digital supplies for free...there are tons of gals who give away stuff on their blogs every day....and that can at least get you started. you'll eventually end up buying kits just to have more options with things that coordinate together. BUT....if you are lucky enough to get picked to be on someones Creative Team, you get the kits for free in exchange for promoting their stuff and doing layouts for them to advertize their stuff with.
The other cost is printing out the layouts once they're done.....i pay $2.49 for a 12x12 layout. some people don't print them at all....some people have them bound into a book for $20-$30 for 20 or so pages. i like having the traditional 12x12 albums and i slip my pages into them. the only other big expense i've incurred is buying an external harddrive to store all this stuff on.....some of these kits are massive files......100Mb-ish.....so you'll fill up your hard-drive before ya know it if you get a lot of stuff!
so is digital cheaper? maybe a little......for me, i prefer it because it's EASIER on my lifestyle. i don't have to drag out papers, markers, find embellies to match......all my digital stuff is in folders and i know that in each folder everything coordinates, and i can see in the previews what's in the folders....so i find my stuff much faster with digital. and my kids can't get into the digital stuff like they'd get into the paper stuff.....big plus there!

and i can even take my laptop with me into the van and scrap on our way to relatives' houses......or on the 16+ hour drive to WDW! can't do THAT with paper!

and i finish digital layouts WAY faster than i ever did with paper....but maybe i was just slow.......it'd take me FOREVER just to find the papers i'd want to use, kwim? I'd spend probably 2 hours on a paper layout......whereas now i can get a layout done digitally in less than an hour easily....
clear as mud?
