No one can deny that raising a family is an expensive undertaking. You have to spend a lot of money on your children, normally from the time they are infants up until they graduate college. Not only do you have to figure in diapers and baby food when they are very young, you also have to calculate the costs for athletics, education and housing. The U.S. Department of Agriculture (USDA) has been keeping track of these kinds of statistics since 1960. Its current data was published in 2013.
Less Money is Spent on Basic Items
According to USDA figures, the cost of caring for a child, in and of itself, has climbed almost twice as fast as prices, overall, since the economic recession ended in 2009. The figures represent what a middle income family spends on each child in the household.
Expenses for Housing Remain about The Same
According to research, how much people in the US spend on raising kids has altered a fair amount over the last several years. While the amount of income spent on shelter (about 33%) has remained steady, spending on just about everything else has changed.
For example, parents spend much less on basic items for their children nowadays. Items or substances such as personal care products, food, clothes, toys or sports gear and accessories are all now lower in cost. That is because many goods are produced overseas, and technological advancements have been made in agriculture and manufacturing.
The Costs for Health Care Have Risen
However, that being said, parents do spend more money on services for their children. Fixed costs, for example, like health care. have increased. More money is also spent on education and child care. The average middle-income family in a two-parent household spent about 18% of its budget on child care and education in 2013, which is 2% more than it was in 1960.
The Amount of Money Spent on Each Child Per Year
Overall, studies show that a child who is born in 2013, whose expenses are covered until he or she is 18 years old, will cost parents approximately $245,340 over that period. In other words, a standard-sized family with two parents and two children will spend almost one-half million dollars for the kids in the household until the younger family members are ready to pay their own costs or reach the age of majority.