Thinking of having children? If you’re concerned over the rising cost of living and inflation then you might have to reconsider the bundle of joy after a new report found that a child born in 2013 will cost a middle-income family $245,340, or more than $13,000 per year, until they reach the age of 18.
According to the Agriculture Department’s new “Expenditures on Children and Families” report, the average middle class family will shell out nearly a quarter of a million dollars on food, housing, childcare and education for a child born a year ago. The report did not consist of costs associated with when the child becomes an adult, such as paying for their son or daughter’s college education, living expenses and student loans.
Similar to previous reports, urban families located in the northeast will spend nearly $40,000 more than those residing in the urban areas of the south and rural parts of the country.
The overall cost of having a child has also risen 1.8 percent from 2012. Overall, when the costs are actually adjusted for inflation in the next 18 years, a child can cost a family just under $305,000.
Here is what the USDA said in its report:
“Since 1960, the U.S. Department of Agriculture has provided estimates of expenditures on children from birth through age 17. This technical report presents the most recent estimates for husband-wife and single-parent families using data from the 2005-06 Consumer Expenditure Survey, updated to 2013 dollars using the Consumer Price Index. Data and methods used in calculating annual child-rearing expenses are described. Estimates are provided for major components of the budget by age of child, family income, and region of residence. For the overall United States, annual child-rearing expense estimates ranged between $12,800 and $14,970 for a child in a two-child, married-couple family in the middle-income group. Adjustment factors for number of children in the household are also provided. Results of this study should be of use in developing State child support and foster care guidelines, as well as in family educational programs.”
If you wish to determine the specific costs of raising a child then be sure to check out the USDA calculator.
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