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The cost of raising a child
The Department of Agriculture estimates the number is more than $200,000.
WASHINGTON — Expecting a baby? Congratulations! Better put plenty of money in your savings account.
The Department of Agriculture says the estimated cost of raising a child from birth through age 17 is $233,610, or as much as almost $14,000 annually. That’s the average for a middle-income couple with two children.
The estimate released Monday is based on 2015 numbers, and it’s a 3 percent increase from the prior year, a hike higher than inflation.
The main costs include housing, food, transportation, health care, education, and clothing.
Things to know:
Up to a third of the total cost is housing, accounting for 26 percent to 33 percent of the total expense of raising a child. USDA comes up with those numbers by calculating the average cost of an additional bedroom — an approach the department says is probably conservative because it doesn’t account for families who pay more to live in areas that have better schools or other amenities for children.
The cost of raising a child varies in different regions of the country. Overall, middle-income, married-couple families in the urban Northeast spent the most ($253,770), followed by those in the urban West ($235,140) and urban South ($221,730). Those in the urban Midwest spent less ($217,020), along with those in rural areas ($193,020).
There were also differences depending on income. Lower-income families are expected to spend about $174,690 per childfrom birth through 17; higher-income families will spend $372,210.
After housing, child care, education and food are the highest costs for families. For a middle-income couple with two children, food costs make up about 18 percent of the cost. Child care and education costs make up 16 percent.
Child care costs have sharply risen since 1960, when USDA estimated that those expenses were about 2 percent of child-rearing expenses. The report says this growth is likely due to the increased number of women in the workforce, prompting the need for more child care. New parents may flinch at the cost of baby gear, but it’s going to get worse. While a child costs about $12,680 when he or she is between 0 and 2, a teenager 15 to 17 costs about $13,900 annually.
Families with three or more children spend an average of 24 percent less per child. USDA says that’s because children often share bedrooms in bigger families, clothing and toys are handed down and food can be purchased in larger and more economical packages.