How much Does it Cost to Raise a Child?

Raising a child isn't easy, and nowadays neither is paying to raise a child! Here are some of the most important things to keep in mind when you're debating having a baby to make sure the timing (and financial situation) is right.

With the recent economic instability impacting the cost of living for the worse, and with many people finding it difficult to scrape out a living as it currently stands, future parents are especially troubled by the economic environment. It’s already a hard enough task to raise a child and provide them with the necessary tools to successfully develop into upstanding individuals, without even considering the rising costs associated with this task.

The rising costs of raising a child have many people wondering: how much will it cost to raise a child in this modern world? This article will give an overview of the total and average costs of raising a child from infancy to adulthood, but it must be noted that costs may vary considerably from individual to individual, depending on any number of factors.

What you’ll be expected to cover

The necessities of raising a child according to the U.S. Department of Agriculture are as follows: housing and transportation, food, education and general childcare, as well as healthcare and general well-being (clothing, miscellaneous etc.).

From year one to year 18, the costs of raising the child grow noticeably in every category. This can be due to any number of things, from the increased caloric intake in the food category, to a higher education requirement for education and childcare.

The average price annually from day one is roughly $12,000, with that number rising to $15,000 by the 18th year. This brings the total cost of raising a child from infancy to adulthood to around $245,340 in 2016.

This number represents the average cost across the middle income household grouping, as well as the average pooled from all areas and regions of the U.S.A. That said, this figure differs immensely for some individuals, based solely on their geographic region, where the cost of housing and transportation is substantially higher than the national average. Things like private schooling can also raise the cost quite substantially, as can healthcare.

Raising a child versus living alone

According to research conducted by the Economic Policy Institute, the average cost of living for an adult with no children in the U.S. is $28,474. This would mean adding a child to the mix would bring the cost of living upwards of $40,000 — a major increase for anyone to take on.

The raised cost of living for adults living alone, coupled with the already historically high cost of raising a child, make it increasingly harder for single adults to cover the costs of a child’s needs. This trend is set to continue in the coming years, and it’s now more than ever of utmost importance to consider the costs associated with raising a child in the modern world.