Each additional child costs less because children can share a bedroom a family can buy food in larger, more economical quantities clothing and toys can be handed down and older children can often babysit younger ones. This is sometimes referred to as the “cheaper by the dozen” effect. For families with three or more children, per child expenses averaged 24% less on each child than on a child in a two-child family. For married-couple families with one child, expenses averaged 27% more per child than expenses in a two-child family. That is, with each additional child, expenses on each declines.
Families in rural areas throughout the country spent the least on a child-child-rearing expenses were 27% lower in rural areas than the urban Northeast, primarily due to lower housing and child care/education expenses.Ĭhild-rearing expenses are subject to economies of scale. Families in the urban Northeast spent the most on a child, followed by families in the urban West, urban South, and urban Midwest. Teenagers have higher food costs as well as higher transportation costs as these are the years they start to drive so insurance is included or a maybe a second car is purchased for them. Overall annual expenses averaged about $300 less for children from birth to 2 years old, and averaged $900 more for teenagers between 15-17 years of age. Not surprising, the higher a family’s income the more was spent on a child, particularly for child care/education and miscellaneous expenses.Įxpenses also increase as a child ages. We did the analysis by household income level, age of the child, and region of residence. As families often need more room to accommodate children, housing is the largest expense. Expenses vary depending on the age of the child. Food is second at 18%, and child care/education (for those with the expense) is third at 16%. Where does the money go? For a middle-income family, housing accounts for the largest share at 29% of total child-rearing costs. This does not include the cost of a college education. Middle-income, married-couple parents of a child born in 2015 may expect to spend $233,610 ($284,570 if projected inflation costs are factored in*) for food, shelter, and other necessities to raise a child through age 17. This report is also known as “The Cost of Raising a Child.” USDA has been tracking the cost of raising a child since 1960 and this analysis examines expenses by age of child, household income, budgetary component, and region of the country.īased on the most recent data from the Consumer Expenditures Survey, in 2015, a family will spend approximately $12,980 annually per child in a middle-income ($59,200-$107,400), two-child, married-couple family. USDA recently issued Expenditures on Children by Families, 2015. Families Projected to Spend an Average of $233,610 Raising a Child Born in 2015.
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