USDA: Parents projected to spend $241,080
USDA: Parents projected to spend $241,080 to raise a child born in 2012
USDA’s annual report, Expenditures on Children by Families shows that a middle-income family with a child born in 2012 can expect to spend about $241,080 ($301,970 adjusted for projected inflation*) for food, shelter and other necessities associated with child-rearing expenses over the next 17 years. This represents a 2.6% increase from 2011.
Expenses for child care, education, health care and clothing saw the largest percentage increases related to child rearing from 2011. However, there were smaller increases in housing, food, transportation and miscellaneous expenses during the same period. The 2.6% increase from 2011 to 2012 is also lower than the average annual increase of 4.4% since 1960.
The report, issued annually, 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 2012, annual child-rearing expenses per child for a middle-income, two-parent family ranged from $12,600 to $14,700, depending on the age of the child. (Read more...)