Because teenagers are beginning to drive, transportation expenses such as insurance and vehicle purchases can affect the costs of raising a child for some families. Transportation expenses were highest for children aged 15-17. Childcare and education expenses were generally highest for children 6 and younger due to the cost of preschool and private daycare.Īs children reach school age, childcare costs go down, but food, healthcare and clothing costs trend upwardsĪnd once children reach their teenage years the cost equation shifts again. No matter what a household’s income is, child-rearing costs shift depending on the age of the children.Įarly in life, childcare expenses are a larger share of the costs. As household income rises, so does the average amount spent on raising children.įor example, families that make less than $59,200 a year in a married-couple, two-child household, spend a range of $9,330 to $9,980 per child.įamilies making more than $107,400 spend more than twice that amount per child.Ĭosts to raise a child increase as age increases The USDA reports child costs by the lower, middle, and upper thirds of the income distribution. Families spend more money on raising children as household income goes up. And low-income families were more likely to be cost-burdened by childcare expenses. According to Census Bureau data, family childcare costs increased 25% between 20. The costs of childcare kept going up in more recent years as well. Childcare and education went from 2% of the cost to raise children in 1960 to 16% in 2015, the biggest increase of any expense category. But as more women joined the labor force, demand for outside care increased. For example, back then, childcare costs were mostly for in-the-home babysitting. Raising children in the US has changed in many ways since 1960.
One of the largest excluded expenses is the cost of a college education. According to the National Center for Education Statistics in 2020 annual average undergraduate tuition was $25,281, adjusted for inflation.
Transportation expenses include vehicle payments, down payments, gas expenses, maintenance and repairs, insurance, and public transportation costs.Ĭhildcare and education expenses include day care tuition, other forms of childcare such as babysitting costs, and elementary and high school tuition for private schools. According to USDA, housing costs include any form of shelter (mortgage payments, property taxes, rent, or insurance), utilities (gas, electricity, fuel, cellphone, and water), and house furnishings and equipment.
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