Cost of raising a child

The cost of raising a child varies from country to country.

The cost of raising a child is different from the Average Spending on a child (USDA chart below) which is influenced by income. The USDA charts are based on a birth in 2011. If the child is born in earlier years, the total for 18 years is significantly lower, as shown in the H.H.S. data providing the Basic Cost of raising a child.

The cost of raising a child is usually determined according to a formula that accounts for major areas of expenditure, such as food, housing, and clothing. However, any given family's actual expenses may differ from the estimates. For example, the rent on a home does not usually change when the tenants have another child, so the family's housing costs may remain the same. In other cases, the home may be too small, in which case the family might move to a larger home at a higher cost.

Developing countries

According to Globalissues.org, "Almost half the world — over three billion people — live on less than $2.50 a day." This statistic includes children. Based on UNICEF statistics, in developing countries the cost is roughly US$900 for raising a child for a year, and US$16,200 for raising a child from birth to age 17. (This calculation is difficult, since families in developing countries often do not operate with currency, but barter or trade to provide for their children.) Half of all children in the world live in poverty.

United Kingdom

Based on a survey called "Cost of a Child" LV= (formerly known as Liverpool Victoria), it costs approximately £222,458 to raise a child in the United Kingdom from birth to 21 years of age. (Approximately US$342,000 at August 2012.)

United States

$4,020 per person is the basic annual household income amount that is necessary to stay above poverty guidelines, according to the Department of Health and Human Services for 2013, whether there is one child or many children. Based on the 30 year average inflation rate of 3% increasing the annual cost every year, $72,360 {4020 avg x 18yrs} is the total basic cost of raising a child from birth in 2004 to age 18. $94,100 {5228 avg x 18yrs} is the total basic cost of raising a child from birth in 2013 to age 18.

As stated by Texas A&M University Finance Professor H. Swint Friday, "The numbers, reported by the U.S. Department of Agriculture, are misleading to the point of outrageous. Often government statistics are produced for political objectives that cause the research methodology to be biased toward finding the highest dollar amount to support the objective. ...One mother...calculated the cost of raising her eight children at approximately $2,900 per head each year for a total of $52,000 for each child over the 18 years."

Based on a survey by the U.S. Department of Agriculture, the table below shows the estimated Average Spending on Children by Families. The table shows Spending based on a family with two children on a per-child basis. The data comes from the Consumer Expenditure Survey by the U.S. Department of Labor, conducted from 2005-06. The figures have been updated to 2011 dollars using the Consumer Price Index.

These figures from the USDA go up to age 18, and do not include any college or university education. Nor does it offer any Spending estimates if the child remains in the home as a dependent after the age of 18.

There are two tables, the first for two-parent households, the second for single-parent families.

Both tables are for the United States overall, not based on any specific region in the country.

Dual-Parent Family - USDA Average Spending per Child (not the basic cost of raising)

Age of Child	Housing	Food	Transport.	Clothing	Health	Child care /Education	Misc.	Total
Before-tax income: Less than $59,410 (Average = $38,000)
0 to 2	2,990	1,160	1,170	640	630	2,040	420	9,050
3 to 5	2,990	1,260	1,230	500	590	1,910	620	9,100
6 to 8	2,990	1,710	1,350	570	660	1,290	630	8,760
9 to 11	2,990	1,970	1,350	580	710	1,910	630	9,520
12 to 14	2,990	2,130	1,480	690	1,090	1,110	700	9,960
15 to 17	2,990	2,120	1,630	730	1,010	1,290	580	9,970
Total	53,820	31,050	24,630	11,130	14,070	23,640	10,740	169,080
Before-tax income: $59,410 to $102,870 (Average = $79,940)
0 to 2	3,920	1,405	1,690	760	850	2,860	890	12,370
3 to 5	3,920	1,490	1,740	610	800	2,740	1,090	12,390
6 to 8	3,920	2,100	1,860	680	940	1,680	1,110	12,290
9 to 11	3,920	2,400	1,870	710	1,000	2,110	1,100	13,110
12 to 14	3,920	2,580	1,990	840	1,410	1,910	1,170	13,820
15 to 17	3,920	2,570	2,150	900	1,330	2,400	1,050	14,320
Total	70,560	37,620	33,900	13,500	18,990	41,100	19,230	234,900
Before-tax income: More than $102,870 (Average = $180,040)
0 to 2	7,100	1,900	2,550	1,050	980	5,090	1,790	20,460
3 to 5	7,100	2,000	2,610	880	930
12 to 14	7,100	3,190	2,860	1,170	1,610	4,700	2,070	22,700
15 to 17	7,100	3,180	3,020	1,280	1,520	6,460	1,950	24,510
Total	127,800	47,640	49,500	19,080	21,810	88,440	35,400	389,670

All numbers are in US dollars.

Reference:

Also notice that the dual parent and solo parent charts use different income ranges so that an accurate comparison cannot be obtained, and the visitor parent pays all of the taxes on child support while most custodians take all of the tax deductions. This is tax fraud because every other allowable tax deduction is based on the costs that you paid, and not based on the costs that someone else paid.

Single-Parent Family - USDA Average Spending per Child (not the basic cost of raising)

Age of Child	Housing	Food	Transport.	Clothing	Health	Child care /Education	Misc.	Total
Before-tax income: Less than $40,410 (Average = $18,350)
0 to 2	2,840	1,400	680	410	520	1,400	510	7,760
3 to 5	2,840	1,370	920	330	600	1,940	610	8,610
6 to 8	2,840	1,830	1,030	340	670	1,940	780	8,450
9 to 11	2,840	2,010	1,060	400	620	1,360	740	9,030
12 to 14	2,840	2,150	1,130	420	940	1,120	840	9,440
15 to 17	2,840	2,270	1,130	460	930	880	670	9,180
Total	51,120	33,090	17,850	7,080	12,840	22,980	12,450	157,410
Before-tax income: $59,410 or more (Average = $107,820)
0 to 2	5,880	2,080	1,920	590	980	3,670	1,650	16,770
3 to 5	5,880	2,070	2,160	500	1,090	4,210	1,750	17,660
6 to 8	5,880	2,680	2,260	530	1,180	3,350	1,930	17,810
9 to 11	5,880	3,000	2,300	610	1,110	3,880	1,880	18,660
12 to 14	5,880	3,080	2,370	650	1,560	4,150	1,980	19,670
15 to 17	5,880	3,220	2,370	730	1,550	5,010	1,810	20,570
Total	105,840	48,390	40,140	10,830	22,410	72,810	33,000	333,420

All numbers are in US dollars.

Reference:

India

Based on an estimate by Economic Times in March 2011, cost of raising a child from birth to age of majority (21 Years) for middle to upper-middle income family comes to about Rs. 55 Lakh (Rs. 5.5 Million, or about 90,000 USD as of Sep'2014) in total.

Cost break up is as follows:

Expenditure Class	Estimated Cost (Rs. Lakh)	% of Cost
Education	25.19	46%
Housing	10.40	19%
Entertainment	6.57	12%
Clothing	3.29	6%
Food	2.74	5%
Transportation	2.74	5%
Healthcare	2.19	4%
Others	1.64	3%
Total	54.75	100%

Estimate assumes cost of birth, but doesn't consider any major illness in child.

See also

• Only child
• Child support
• Childfree
• Cost of living

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• Demographic economics
• Family economics
• Family planning

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• Family values
• Single parent
• Middle class squeeze

External links

• "Raising that '07 baby will cost $204,060 in U.S." - from Reuters, retrieved August 5, 2012.
• "Cost of raising children not as high as government would have you believe" - from caller.com, retrieved March 31, 2013.
• "Income Guidelines" - from Department of Health and Human Services (HHS), retrieved March 31, 2013.
• "Cost of Raising Children in the US" - from Globe Life Insurance, retrieved September 11, 2013