Newborns will cost parents an average of $233,610 to raise, according to new federal estimates.
Low income parents will face a bill of about $174,690, and wealthy ones $372,201, a sign of increasing costs for food, clothing and child care, according to the Agriculture Department.
From USDA:
Today, the U.S. Department of Agriculture (USDA) released the 2015 Expenditures on Children by Families report, also known as “The Cost of Raising a Child.” The report, developed by economists at USDA’s Center for Nutrition Policy and Promotion (CNPP), estimates that for a child born in 2015, a middle-income* married-couple family will spend between $12,350 and $13,900 annually (in 2015 dollars) – or $233,610 from birth through age 17 – on child-rearing expenses. Families with lower incomes are expected to spend $174,690 and families with higher incomes are expected to spend $372,210 from birth through age 17. Many state governments use this annual report, first issued in 1960, as a resource in determining child support and foster care guidelines.
“As the economy continues to improve, USDA is committed to supporting the nutrition and health of individuals and families through our research and programs,” said Kevin Concannon, Under Secretary for Food, Nutrition and Consumer Services. “This report, which we have produced for 55 years, gives families a greater awareness of the expenses they are likely to face, and serves as a valuable tool for financial planning and educational programs, as well as courts and state governments.”
“Understanding the costs of raising children and planning for anticipated and unexpected life events is an important part of securing financial health. The U.S. Department of the Treasury, among other Federal agencies, has a wealth of information and tools that can help Americans plan for their future. MyMoney.gov can help you make a budget, find assistance with child care costs and save for emergencies or big purchases like a home or college education,” said Louisa Quittman, Director of the Office of Financial Security for the U.S. Department of the Treasury. “MyMoney.gov can also help you provide money management lessons for your children to help them be more prepared for their financial future.”
Paul Bedard, the Washington Examiner’s “Washington Secrets” columnist, can be contacted at [email protected]
