How much does it cost to raise a child today in the U.S.?
An examination of the financial impact of bringing children into this world today is worth a closer look in this era of economic uncertainty.
Cost variation according to age of Child
By the time you are ready to send your kid off to college, you have spent over $100,000 raising them
0-2
Yrs
$9,050
3-5
Yrs
6-8
Yrs
9-11
Yrs
12-14
Yrs
15-17
Yrs
The times they are a-changin including the cost of childcare
30%
The average cost of raising a child has increased $31,000 in real dollars since 1960, which is around 30%.
On average a middle-class income household spends around $342,584 to raise one child through the age of 17.
It ain’t cheap to educate, feed, clothe and make sure your child stays healthy these days
The cost breakdown for raising kiddos today compared to 1960
1,175%
more is being spent on education (2015 compared to 1960)
Reference: https://www.care.com/c/cost-of-child-care-survey-2017-report/
Costs for housing, food, clothing, transportation and everything else increases significantly every five years
The real cost of raising a child, every 5 years since 1960
Reference: listwithclever.com/research/cost-of-raising-a-child-over-time/
What makes the cost of raising a child today so expensive?
Where you live in the United States can dramatically impact the cost of raising a child
Mississippi takes the prize for the lowest cost-state to raise a child.
It costs $4,885 less per year than national average to raise a child in Alabama.
It costs nearly $20,000 to raise a child in Wisconsin and Delaware making them two the two states closest to the U.S. average.
Hawaii costs $6,328 more per year than national average to raise a child
The most expensive place to raise a child in America is Washington, D.C., our nation's capital.
Reference: listwithclever.com/research/cost-of-raising-a-child-over-time/
As family income has changed over the years, so have the child raising-expenses for the lower, middle and upper class
The expenses of raising a child were higher for middle and high income parents, as they were able to spend more on non-essentials and education.
Childcare Expenses
Lower Class Income
Less than $59,200
Middle Class Income
Between $59,200 & $107,400
Upper Class Income
Over $107,400
Reference: https://www.pewresearch.org/social-trends/2020/01/09/trends-in-income-and-wealth-inequality/
Family costs depend on the number of children they have
But for every additional child parents spend less
For families with
2 children:
27%
less is spent on the additional child as compared to a one child family
For families with three or
more children:
24%
less is spent on each additional child than on a two-child family
Reference: https://www.usda.gov/media/blog/2017/01/13/cost-raising-child
The cost of raising a child in America today
Everything from healthcare to housing to transportation adds up
On average, to raise one child through the age of 17, a middle-class income household spends around
$342,584
The smallest share is of childbirth expenses
Here’s all you need to know about childbirth costs
$5,000 to $11,000
in most states
If you’re considering adopting, be aware of the costs:
$60,000 - $70,000
State wise cost of childbirth
Childbirth costs can vary significantly depending on your location
It was close but Nebraska is the cheapest state to give birth to a baby at just $8,805.
Looking to cut costs on childbirth? Maine may be your state.
In Idaho you will pay 24% below the national average to have your baby.
In South Dakota you will pay 22% below the national average to give birth to a baby.
It ain't cheap to have a baby in Alaska as it costs 24% more than the average state.
California takes the prize for being the most expensive state to give birth to a child (75% higher cost than the average)
Comparison of child birth costs by countries
Average cost of deliveries in 6 countries
C-section
Normal
Reference: https://www.bbc.com/news/business-31052665
Giving your children a good shelter has also become a lot more expensive in just 10 years
The dramatic increase of housing costs over the last decade
House Prices: YOY: Quaterly: sa: United States
Reference: https://www.ceicdata.com/en/indicator/united-states/house-prices-growth
State wise house cost in US
Housing costs vary significantly depending on where in the country you settle with your family
Want to pay half of the national average for your home? Move to Mississippi.
The median home value in West Virginia is almost half of the national average.
You are going to pay 50% more than the national average for your house in Washington.
Get ready to pay up for your house as California homes come in at 124% greater than the national average.
Hawaii is beautiful but houses are triple the national average.
Reference: https://worldpopulationreview.com/state-rankings/median-home-price-by-state
As children grow, so do their food costs
It costs a lot to feed growing children
Reference: https://www.fb.org/market-intel/u.s.-food-expenditures-at-home-and-abroad
For every year a child gets older, their food spending increases
Food cost trend by child age
Age of child
Reference: https://en.wikipedia.org/wiki/Cost_of_raising_a_child#United_States
Food costs for children can shift dramatically by state
Top 10 most expensive states for child food costs
Reference: https://www.move.org/the-average-cost-of-food-in-the-us/
School is in session and it costs a lot the older a child gets
The cost of educating a child privately varies based on what state you live in
Average private school cost
Reference: www.privateschoolreview.com/tuition-stats/private-school-cost-by-state
A detailed look at the breakdown of education expenses for an elementary school child
Annual expenses for different categories of education
Elementary School
Secondary School
Education Costs Per Year
Elementary/
Middle School
After School Activity Fees
$150 - $250
Supplies
$110 - $270
Technology
$756
Music, Language or other lessons
$22,340
12 Months of Tutoring Sessions
$4,800
Private School Tution
$7,770
Public vs Private
Elementary School
Public School Elementary
$1,017 - $12,011
Private School Elementary
$8,787 - $19,781
Average cost of full-time undergraduate tuition
$18,550 to $54,880
Reference:
https://research.collegeboard.org/pdf/trends-college-pricing-student-aid-2020.pdf
https://gradepowerlearning.com/wp-content/uploads/2019/11/real-cost-of-education-in-USA.png
For working parents, childcare can take up a lot of their salary
Weekly childcare rates change based on where you live
Expenses for a nanny
1. New Hampshire
2. New Jersey
3. Maryland
4. Connecticut
5. North Dakota
Expenses for daycare
1. North Dakota
2. Utah
3. Delaware
4. Arkansas
5. New Jersey
Reference: https://gradepowerlearning.com/wp-content/uploads/2019/11/real-cost-of-education-in-USA.png
Healthcare for children is expensive (even when they aren’t sick)
Out-of-pocket childcare expenses you didn’t see coming
Medical Bills
Baby Stuff
Clothing Cost
Reference: https://www.investopedia.com/articles/pf/08/budgeting-for-baby.asp
The toll raising a child takes on families
Mental Health
Career
Debt
Reference: https://www.care.com/c/cost-of-child-care-survey-2017-report/
The Big Picture
The cost of raising a child in America is growing
Any parent will tell you that raising a family is expensive but they will also tell you it is absolutely worth it. And there are plenty of ways to cut costs and still have a healthy, happy family.
Eating at home, handing down clothes, and teaching your children to save money from a young age are a few of the ways to promote financial health at home.
Eating at home, handing down clothes, and teaching your children to save money from a young age are a few of the ways to promote financial health at home.
If you are struggling with debt or just want to get a better handle on your finances before you have a family, there are options. MyCredello is a free personal finance tool that helps relieve those debt pain points. Enter training mode to build your financial fitness and be well on your way to debt freedom.