USDA report: Cost of raising a child over $245,000
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WASHINGTON, Aug. 18, 2014 - A middle-income family with a child born in 2013 can expect to spend about $245,340, an overall 1.8 percent increase from 2012, according to a report released Monday.
USDA published the annual Expenditures on Children and Families report, also known as the Cost of Raising a Child.
The cost of $245,340 for middle-income family to raise a child born in 2013 is $304,480 adjusted for projected inflation, and includes food, housing, childcare and education, and other child-rearing expenses up to age 18. Costs associated with pregnancy or expenses occurred after age 18, such as higher education, are not included.
While this represents an overall 1.8 percent increase from 2012, the percentages spent on each expenditure category remain the same, USDA noted. As in the past, the costs by location are lower in the urban South ($230,610) and rural ($193,590) regions of the country. Families in the urban Northeast incurred the highest costs to raise a child ($282,480).
"In today's economy, it's important to be prepared with as much information as possible when planning for the future," said USDA Food, Nutrition and Consumer Services Under Secretary Kevin Concannon. "In addition to giving families with children an indication of expenses they might want to be prepared for, the report is a critical resource for state governments in determining child support guidelines and foster care payments."
The report is based on data from the federal government's Consumer Expenditure Survey. For the year 2013, annual child-rearing expenses per child for a middle-income, two-parent family ranged from $12,800 to $14,970, depending on the age of the child.
The report, developed by the USDA Center for Nutrition Policy and Promotion (CNPP), notes that family income affects child-rearing costs. A family earning less than $61,530 per year can expect to spend a total of $176,550 (in 2013 dollars) on a child from birth up to age 18. Middle-income parents with an income between $61,530 and $106,540 can expect to spend $245,340; and a family earning more than $106,540 can expect to spend $407,820.
"Food is among the top three expenses in raising children," said CNPP Executive Director Angela Tagtow.
The full report, Expenditures on Children by Families, 2013, is available here.
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