How much money is one child?
We know that raising kids is expensive — but just how expensive is it? According to a U.S. Department of Agriculture study published in 2017, the average cost of raising a child from birth through age 17 was $233,610 for a middle-income married couple with two children.
Millions of Americans struggle to put money away, leaving them empty-handed as they approach one of life's key financial milestones. No, not retirement — having a child, which new research shows is getting more expensive by the year.
Your kid's age | Annual costs per child |
---|---|
0 to 2 years | $13,600 |
3 to 5 years | $13,600 |
6 to 8 years | $13,200 |
9 to 11 years | $14,100 |
The average American family can now expect to spend over $300,000 raising a child to the age of 17 before including college tuition. Rising costs have taken a toll—in a survey of American adults, those who have or expect to have fewer children than they want do so, in part because of the cost associated with children.
Business Insider estimated the cost to care for one child in the US in 2024 will be at least $25,714. That's a 41.5% increase since 2016 and costs will likely continue to go up this year.
On average parents spend nearly a quarter of a million dollars ($237,482) to raise a child up to age 18.
According to data from the US Department of Agriculture (USDA), a child born in 2015 to a middle-income family costs approximately $12,980 to $13,900 annually (depending on the age of the child). Inflation adjustments boost those costs by 23% in 2022, ranging from $16,007 to $17,141 per child.
Age | Allowance |
---|---|
12 years old | $10.68 |
13 years old | $11.78 |
14 years old | $13.17 |
15 years old | $14.89 |
One of the most important money moves is setting aside some cash for unexpected expenses. A solid emergency fund holds three to six months' worth of your take-home pay. If that sounds overwhelming, start with $1,000, then shoot for one month of expenses, and before you know it, you'll be at your goal.
For newborns, the cost is higher. Some studies show numbers ranging from $20,000 to $50,000 for the child's first year of life, depending on location and household income. Beyond the general items, like a stroller, crib, or car seat, here are some estimates of what you can expect to shell out in your baby's first year.
Will I save money by not having kids?
Couples without children may need less money than their counterparts because they don't have to financially support other individuals to financially support, even in retirement.
- Build up your emergency fund. It's always important to have a rainy-day fund. ...
- Practice living on a budget. ...
- Read the fine print on your health insurance. ...
- Research the cost of childcare. ...
- Get a head start on college savings.
What is the cheapest way to give birth? The cheapest way to give birth is usually at home. With a home birth, you aren't paying the enormous hospital fees, but there are also more risks involved. Delivering at a birthing center can also be cheaper than a hospital birth.
An expense associated with the cost of raising children is housing. This can easily make up a sizable chunk of a parent's budget, especially when you factor in mortgage or rent payments, taxes, insurance, repairs, utilities, maintenance, and household goods.
Disposable diapers: On average, disposable diapers cost between $0.20 and $0.30 per diaper. This means that if you use 10 diapers per day, you can expect to spend between $60 and $90 per month on diapers.
How much does raising a child cost yearly? The $288,094 figure can seem incredibly intimidating — but remember, that cost is spread out over 18 years. Taking a rough average, that's around $16,005 per year — or approximately $1,334 per month.
- Provide ways for your baby to see, hear, move freely and touch you. ...
- Look into your baby's eyes and smile in response to their smiles. ...
- Talk to your baby in soft tones and 'baby talk'. ...
- Gently change the sound of your voice. ...
- Place your baby on their tummy and shake a rattle or bell in front of them.
Under the 4% inflation scenario, annual expenditures on raising a child exceed $15,000 when they turn eight and raise over $20,000 a year when they turn 14. Parents are estimated to spend nearly $25,000 when their child is 17.
Here are the median costs by birth type: vagin*l with no complications: $10,958. vagin*l with complications: $13,010. Cesarean with no complications: $18,570.
Average monthly expenses for a family of 5 or more:
$8,068, or $96,814 annually. Yes, we do note that a family of five has lower monthly expenses than a family of four, according to the BLS. Such is the nature of statistical estimates. Track your budget and see all of your finances together in a single place.
What is the most expensive state to raise a child?
Hawaii is most expensive state to raise child
Basic annual expenses to raise a small child in 2021 equaled $30,506 in Hawaii, more than any other state. The District of Columbia and the state of Washington followed at $30,097 and $28,116, respectively.
According to data gathered by the financial experts at LendingTree via hospital data transparency, the US average for a vagin*l delivery was $13,024 in 2020. But that's the average across the country—your location plays a big part in how much you'll have to pay.
For most, $10,000 is a lot of money. Typically, that amount of money doesn't just appear out of thin air without some financial strain. However, if you think about $10,000 as saving a little over $27 each day, it becomes much more realistic.
- Part-Time Job: Look for local businesses that hire teenagers, such as restaurants, grocery stores, or coffee shops. ...
- Babysitting: ...
- Tutoring: ...
- Pet Sitting/Walking: ...
- Yard Work: ...
- Freelancing: ...
- Selling Crafts or Artwork: ...
- Online Surveys or Micro Tasks:
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals. Let's take a closer look at each category.
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