USDA Estimates the Cost of Raising a Child at Nearly a Quarter of a Million Dollars
In a 2014 USDA annual report, Expenditures on Children and Families, calculations indicate that a middle income family with a 2013 newborn should expect to spend about $245,340 – nearly a quarter million dollars! – on raising that child up to age 18. The annual child-rearing expenses for that same family ranged from $12,800-$14,970, depending on the age of the child.
The calculations the USDA used include:
- Food
- Housing
- Child care
- Education
- Other common child-rearing expenses
The cost estimates did not include expenses that you might want to include in your own calculations, such as the actual cost of pregnancy, or any expenses commonly incurred after age 18, such as higher education.
When it comes to cost, where you live matters
As in the past, the costs by location are lower in the urban South ($230,610) and particularly in the rural regions of the country ($193,590).
Cheaper in the past? You bet’cha!
The USDA began tracking these statistics in 1960, back when the average expenditures on raising a child for a middle income, husband-and-wife family amounted to $25,229. Factoring in the cost of living, that would amount to $198,560 in 2013 dollars. But in 2013, that cost per child was actually 24% higher, at $245,340.
Cheaper by the dozen
For example, when comparing husband-and-wife households, a single child family will spend 25% more per child when compared to a two child family. And those with three or more children spend an average of 22% less per child.
How much you earn makes a difference
- A family earning less than $61,530 per year can expect to spend a total of $176,550 (in 2013) on a child.
- Middle income parents with an income between $61,530 and $106,540 can expect to spend $245,340.
- A family earning more than $106,540 should expect to spend $407,820.
Controlling those costs
- The Healthy Eating on a Budget section, with tips and materials to make healthy choices while staying within your budget.
- 10 Tips: a nutrition series with a wealth of suggestions to help you get started toward a healthy diet.
- Recipes: an interactive tool to help with healthy meal planning, cooking, and grocery shopping.
- MyPlate Kids' Place: A section for children, with online kids’ games to get them engaged in healthy eating.
Having a child will be one of the biggest commitments you'll ever make, but it will also be one of the most rewarding. By knowing the costs in advance and preparing accordingly, you can help ensure your child will be well provided for.
Ric Moxley
Contributing Writer