USDA Releases Report Detailing Costs of Raising a Child
How much does it cost to raise a child?
If you have ever asked yourself that question, you'll be glad to know that the USDA (United States Department of Agriculture) prepares an annual report called "Expenditures on Children by Families".
According to the USDA, you will need a MINIMUM of $8,760 per year if you were thinking about adding a new young whippersnapper to your typical family.
As you can imagine, the expected annual costs of raising a child varies according to your household's income level. Let's assume that you have a typical two parent, two child household.
If your household brings in less than $59,410, the cost of raising a kid ranges from $8,760 to $9,970 per year.
If your household brings in between $59,410 and $102,870 per year, the projected costs rise to between $12,290 and $14,320 per child per year.
If your household brings in over $102,870 per year, the projected costs rise to between $20,420-$24,510.
So, if your household makes over $102,870 per year, the total cost of supporting Junior for 18 years will be well over $350,000.
If your household makes less than $59,410 per year, the total cost of supporting Junior for 18 years will be at least $150,000.
According to the USDA, here is where your dollars will go:
Housing - 30%
Child Care & Education - 18%
Food - 16%
Transportation - 14%
Health Care - 8%
Miscellaneous - 8%
Clothing - 6%
Source: USDA.gov - Expenditures on Children by Families, 2011 (*.pdf)
Filed under: General Knowledge