The Real Cost of Raising a Child

As new parents become caught up in the love and enjoyment of having a baby as well as the stresses and lifestyle changes, ­­the cost of raising a child also begins to quickly make itself felt.

The exact cost of raising a child from birth to adulthood is something the U.S. Department of Agriculture has spent decades trying to pinpoint. The USDA released its latest data in 2013, revealing some interesting spending changes that have taken place for parents over the last 50 years or so.

Child-Rearing Price Tag

As of 2013, the USDA has found that, on average, middle-income families composed of two parents and up to five kids will spend $245,340 raising a child from birth to age 18. For low-income households, that number drops to $176,550. For high-income households, the cost rises to an average of $407,820 per child.

The amount of money parents spend while raising a child and what that money is spent on have changed significantly over the years. While costs for shelter have remained fairly constant—parents spent 31 percent of their child-rearing money on shelter in 1960 and 30 percent in 2013—that is about the only thing that has.

Surprisingly, the percentage of money spent for many parental expenses has decreased between 1960 and 2013, such as the amount of money spent on food costs, which has decreased by 8 percent; clothing expenses, which have dropped by 5 percent; and transportation costs, which have decreased by 2 percent.

Expense areas that have increased over that five-decade span include costs for child care and education, which have grown by a whopping 16 percent, and healthcare costs, which have doubled from 4 percent to 8 percent.

When Financial Realities Hit

When you bring home a new baby, expenses can quickly mount that you never even thought of before; and with older children, you can be hit by sudden and overwhelming expenses in the blink of an eye, such as orthodontist bills. If you find yourself strapped for money to buy essentials or to conquer a large, unexpected expense, the team at CashMax Title & Loan can help you with a variety of quick cash options.