We can't tell you exactly what your child will cost, but we can provide you with estimates. Knowing what to expect will allow you to plan for the future. Here is a breakdown of the items you'll need, and an estimate of their costs.
Note: These estimates are for a first child. Bear in mind that second or third children will cost less than the first since you will already have purchased many of the items you need. Typically parents with 3 or more children spend 22 percent less per child than those with just two children.
Government estimates say that a middle-income family in 2013, defined as having an annual income between $61,530 and $106,540, will spend a total of $245,340 to raise a child to age 17. This figure represents a 1.7 percent increase from 2012 and does not include expenses incurred beyond the age of 18. If you include the cost of college, whether public or private, that cost goes up significantly. And, families that earn more generally can expect to spend more on their children.
According to the USDA report, Expenditures on Children by Families, 2013, annual child-rearing expenses per child for a middle-income, two-parent family ranged from $12,800 to $14,970. The age of the child accounted for the annual variations. For example, child care expenses are greater in the first 6 years of a child's life, but transportation costs are likely to be higher when a child hits her teen years.
About 30 percent of the amount spent in the government estimates goes to cover housing expenses relating to the new member of your household. Child care and education expenses account for the second highest percent. Other costs taken into account include transportation, food, clothing, health care, and miscellaneous expenses.
Families in the urban Northeast can expect their expenses to be higher than the rest of the country, but the urban West coast does not lag far behind. However, families living in the urban South and in rural areas experience the lowest expenses.
