Raising a child can be an emotionally rewarding experience. But it can also be very costly. Statistics from the Brookings Institution, an economic think tank, show that the average middle-income family with two children will spend $310,605 to raise a child born in 2015 (latest information) up to age 17 in 2032.

This number represents a significant jump from the figure published by the U.S. Department of Agriculture (USDA), which estimated the overall cost to be $233,610 in 2015. Understanding the costs can make shaping a parent's financial plan easier.

Housing: 32% of Income

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 pa♈yments, taxes, insurance, repairs, utilities, maintenance, and household goods.

According to Consumer Expenditures Data for 2023 (the latest available), the typical household spends $25,436 on housing per year. Meanwhile, U.S. Census Bureau data shows that the median household income in the United States was $80,610 in 2023.

These numbers offer a broad idea of how much families pay for housing. Costs vary depending on geographic area, type of dwelling, and family size. Economic conditions can also influence the cost of housing for families. Rising house prices make it more expensive for families to purchase a home. Likewise, rising 澳洲幸运5开奖号码历史查询:inflation can push up rental﷽ prices and raise prices for co💖nsumer goods.

Food: 15% to 24% of Income

The amount a family spends on food is based on the number of children in the home, household income, geographic region, and preferred diet. The USDA issues monthly reports on food costs at fꦆour levels: thrifty, low-cost, moderate-cost, and liberal. These reports consider different household siꩵzes with children of different ages.

The reference family consists of a male and a female adult ages 19 to 50 and two children in the six- to eight-year-old range and the nine- to 11-year-old range. Here’s how the average food spending numbers for the reference family add up as of November 2024:

• Thrifty plan: $983.80
  
• Low-cost plan: $1,071.10
• Moderate plan: $1,322.60
• Liberal plan: $1,599.40

At the low end, a family of four spends about $11,805 per year on food at home. At the high end, they spend more than $19,100 per year on food. That’s around 24% of their income based on the median household income of $80,610.

Childcare: 7% to 23% of Income

澳洲幸运5开奖号码历史查询:Childcare costs can easily eat up a sizable part of parents’ budgets each year. How much families pay can depend on the type of care needed, the number of children who need care, and where the family lives. In 2022, costs ranged from $5,357 for school-age home-based care in small counties to $17,171 for infant center-based care in large counties.

Planning for College

The essential expenses don’t account for 澳洲幸运5开奖号码历史查询:the cost of a college education. Highe🌜r education can add to the total for parents who help pay for their children’s college costs. How much parents pay for college can depend on whether the child:

• Attends a two- or four-year school
• Goes to a public or private university
• Is charged in-state or out-of-state tuition rates (at public universities)

The average annual cost for the 2024-2025 academic year totals $24,920 for a public college (in-state) and $58,600 for a private college. It includes the cost of tuition, fees, and room and board.

The Bottom Line

The financial side of child-rearing can be daunting and expensive. Families need to allocate money to housing, food, childcare, and even college. Parents can research housing assistance available to qualified families from HUD💦, chil𓂃dcare discounts that may apply for multiple children, and IRS tax credits.