Cost of raising a child now $235K
Want to start a family? It'll cost you more than ever, according to a new government report.
On Father's Day, many of us will acknowledge the sacrifices inherent in parenthood. But if you want to put a dollar figure on it, a new government report puts the cost of raising a child born last year to age 18 at $234,900.
The figure represents the cost -- in 2011 dollars -- for two middle-income parents to raise a child in a two-child family from birth to legal adulthood, according to the annual Expenditures on Children by Families report (.pdf file) released by the U.S. Department of Agriculture. (Post continues below.)
The number includes housing, child care, education, transportation and food; it does not include costs associated with pregnancy or college.
The 2011 figure represents a 3.5% increase over the 2010 estimate. Adjusting for projected inflation, middle-income parents -- with a household income between $59,410 and $102,870 a year -- can expect to actually spend $295,560 per child born in 2011, the report says.
The single largest expenditure over the next 17 years for middle-income families is housing, estimated to be about $70,560 or 30% of the total cost.
Here's a breakdown of the other costs:
- Child care and education: 18%.
- Food: 16%.
- Transportation: 14%.
- Health care: 8%.
- Miscellaneous expenses: 8%.
- Clothing: 6%.
Spending varies by household income, with families that earn less than $59,410 expected to spend $169,080 (in 2011 dollars) per child, and those earning more than $102,870 expected to spend $389,670.
Families with multiple children get a break on a per-child basis, with costs decreasing by 22% per kid for families with three or more children. Projected spending also varies geographically, with families in the urban Northeast expected to spend the most, followed by those in the urban West and Midwest; families in the urban South and in rural areas are expected to spend the least.
The annual report was first issued in 1960, when a middle-income family was expected to spend $25,230 to raise a child to age 18. That would be $191,720 in 2011 dollars.
Maybe you should get Dad something nicer than a tie this year.
More on MSN Money:
- Calculator: How long to pay off your credit cards?
Merry Holidays you have no idea what your talking about. It's true men do primarily pay the money to support and raise their children. In family court a man has about 0% chance of being granted primary custody of his children and yet pays the full load of supporting their children. I pay child support and will pay the amount mentioned in the article (@ 250k) before it's over and done with. I don't get to see my child. The mother an dmy child have moved 100's of miles away and after paying child support there is nothing left for me to travel on and be a part of my child's life.
Tell me "merry holidays" how this is fair, because I can tell you as a father I sure as h#** don't have many merry holidays without my child to enjoy them with.
I did.t take out a loan to add a room on my home when my child was born!
It's not a "real" cost sorry.
Copyright © 2014 Microsoft. All rights reserved.
ABOUT SMART SPENDING
LATEST BLOG POSTS
You can give your car the care it needs without draining your bank account if you follow this advice.
VIDEO ON MSN MONEY
BLOGS WE LIKE
MUST-SEE ON MSN
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'