Tuesday, June 14, 2011

Cost of Raising Children from Birth Through Age 17

A CHILD BORN IN 2010 WILL COST $226,920 TO RAISE - USDA REPORT: June 2011

The Department of Agriculture today released its annual report, Expenditures on Children by Families, finding that a middle-income family with a child born in 2010 can expect to spend about $226,920 ($286,860 if projected inflation costs are factored in) for food, shelter, and other necessities to raise that child over the next 17 years.

This represents a 2% increase from 2009.

Expenses for transportation, child care, education, and health care saw the largest percentage increases related to child rearing from 2009. There were very small changes in housing, food, clothing, and miscellaneous expenses on a child since 2009.

The report, issued annually since 1960, is a valuable resource to courts and state governments in determining child support guidelines and foster care payments. It is based on data from the Federal government’s Consumer Expenditure Survey.

For the year 2010, per child annual child-rearing expenses for a middle-income, two-parent family range from $11,880 to $13,830, depending on the age of the child and geographic variations.

Family income affects child rearing costs:
--earn less than $57,600 per year can expect to spend a total of $163,440 (in 2010 dollars) on a child from birth through high school.
--earn between $57,600 and $99,730 can expect to spend $226,920
--earn more than $99,730 can expect to spend $377,040.

The report also highlights that expenses per child decrease as a family has more children. Families with three or more children spend 22 percent less per child than families with two children. As families have more children, the children can share bedrooms, clothing and toys can be handed down to younger children, food can be purchased in larger and more economical quantities, and private schools or child care centers may offer sibling discounts. READ MORE !

Estimate how much it will cost to raise a child with USDA’s:
Cost of Raising a Child Calculator

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