Raising a child is an expensive but rewarding endeavor. Knowing how much it costs to raise a child monthly can help parents plan for their child’s future and budget accordingly.
Estimating Monthly Cost
Raising a child is a major financial responsibility. According to the U.S. Department of Agriculture’s most recent report, the average monthly cost of raising a child from birth to age 17 is $1,230. This cost is based on a two-parent, middle-income family with two children.
The report also breaks down the costs of raising a child into four categories: housing, food, transportation, and childcare and education. Of these four categories, housing accounts for the highest share of expenses at about 30 percent. The cost of food is the second highest at 18 percent, followed by transportation at 16 percent and childcare and education at 12 percent.
Factors to Consider
When estimating the cost of raising a child, parents should consider several factors. These include the cost of living in the area, the number of children in the family, and the parents’ income level.
The cost of living in an area can have a major impact on monthly expenses. Families living in an urban area, for example, may pay more for housing and transportation than families living in a rural area.
The number of children in a family can also affect the total cost of raising a child. Families with more than one child may be able to save money on certain items, such as clothing and food, by buying in bulk.
Finally, parents’ income level can affect the cost of raising a child. Families with a higher income may be able to afford more expensive childcare and education options, while families with a lower income may need to take advantage of government assistance programs.
Raising a child is an expensive but rewarding endeavor. Knowing how much it costs to raise a child monthly can help parents plan for their child’s future and budget accordingly. Parents should consider the cost of living in their area, the number of children in the family, and their income level when estimating the cost of raising a child.
Raising a child can be both a joyous and expensive endeavor for a family. Even with increasing financial help from the government, there is still a very real cost associated with raising a child. In this article, we’ll be looking at some of the more recent estimates on just how much it costs to raise a child, and where some of that money goes.
According to the most recent report from the United States Department of Agriculture, the average cost of raising a child per month is just over $1,100. That total is based on an annual figure of $13,000, which itself is slightly higher than the figure reported in 2015. The report breaks this down into three separate categories: Housing, Food, and Miscellaneous.
Housing actually accounts for the most expense of the three, taking up almost a third of the total monthly expenditure ($338). That figure includes such items as rent and mortgage payments, as well as utilities and homeowner’s insurance. Food takes the second greatest part of the expense pie at $350 dollars per month while miscellaneous expenses such as clothing, medical care, and educational and transportation costs make up the rest.
To put this into perspective, the USDA also calculated an annual figure based upon the amount of income a family earned. According to these figures, a family earning less than $59,200 a year would be spending 17% of their income just to raise a single child. For those earning between $59,200 and $107,400, that figure drops to 10%.
It’s also important to keep in mind that these are just average figures and that some families may spend significantly more or less than the overall average, depending on a variety of factors. For instance, the cost of living in certain states or cities may be higher, and families in those locations may therefore need to budget more for their child’s care. Additionally, families may also wish to allocate a greater portion of their budget for their child’s needs and care.
While the monetary costs of raising a child can be significant, the emotional, social, and creative benefits are far greater. Knowing how much money is necessary to raise a child may help you better prepare for the future and ensure you are doing the best possible job to meet your child’s needs.