The Department
of Agriculture today released its annual report,
Expenditures on Children by Families, finding
that a middle-income family with a child born in
2010 can expect to spend about $226,920
($286,860 if projected inflation costs are
factored in) for food, shelter, and other
necessities to raise that child over the next 17
years. This represents a 2 percent increase from
2009. Expenses for transportation, child care,
education, and health care saw the largest
percentage increases related to child rearing
from 2009. There were very small changes in
housing, food, clothing, and miscellaneous
expenses on a child since 2009.
The report,
issued annually since 1960, is a valuable
resource to courts and state governments in
determining child support guidelines and foster
care payments. It is based on data from the
Federal government's Consumer Expenditure
Survey, the most comprehensive source of
information available on household expenditures.
For the year 2010, per child annual
child-rearing expenses for a middle-income,
two-parent family range from $11,880 to $13,830,
depending on the age of the child.
The report by
USDA's Center for Nutrition Policy and Promotion
notes that family income affects child rearing
costs. A family earning less than $57,600 per
year can expect to spend a total of $163,440 (in
2010 dollars) on a child from birth through high
school. Similarly, parents with an income
between $57,600 and $99,730 can expect to spend
$226,920; and a family earning more than $99,730
can expect to spend $377,040.
For
middle-income families, housing costs are the
single largest expenditure on a child, averaging
$69,660 or 31 percent of the total cost over 17
years. Child care and education (for those
incurring these expenses) and food were the next
two largest expenses, accounting for 17 and 16
percent of their total expenditure. These
estimates do not include costs associated with
pregnancy or the cost of a college education or
education beyond high school.
The report notes geographic variations in the
cost of raising a child, with expenses the
highest for families living in the urban
Northeast, followed by the urban West and urban
Midwest. Families living in the urban South and
rural areas have the lowest child-rearing
expenses.
This is the 50th year USDA has issued its annual
report on the cost of raising a child. In 1960,
the first year the report was issued, a
middle-income family could have expected to
spend $25,230 ($185,856 in 2010 dollars) to
raise a child through age seventeen. Housing was
the largest expense on a child both then and
now. Health care expenses on a child doubled as
a percentage of total child-rearing costs. In
addition, some current-day costs, such as child
care, were negligible in 1960.
The report also highlights that expenses per
child decrease as a family has more children.
Families with three or more children spend 22
percent less per child than families with two
children. As families have more children, the
children can share bedrooms, clothing and toys
can be handed down to younger children, food can
be purchased in larger and more economical
quantities, and private schools or child care
centers may offer sibling discounts.
The full report, Expenditures on Children by
Families (2010), is available on the web at
www.cnpp.usda.gov. In addition, an interactive
version of the report where families can enter
in the number and ages of their children to
obtain an estimate of costs is available at this
website.