The United States Department of Agriculture (USDA) just released their annual report regarding the Cost of Raising a Child this week and they have estimated it to be around $233,610. The cost was based on the families who had a child in 2015 and the amount covers up to when the children will reach the age of 17.
Huffington Post reported that the findings were made by the economists working at the Center for Nutrition Policy and Promotion of the USDA. The total amount covered a child's basic needs, including food, housing, transportation, health care, child care, education and clothing. However, the estimated amount did not cover college tuition, pregnancy costs, adoption costs and childbirth costs.
The estimated amount was also tailored for middle-income and families that have married couples with two children. For lower-income families, it is believed that they would spend $174,690 while higher-income families will spend around $372,210. They also said that the estimated amount will differ depending on how many children are being raised.
The USDA said that as families increase in size, children may share a bedroom, clothing and toys could be passed down, and food could become more economical. The observation meant that more children could lower cost.
Geography also changed the amount since housing costs are not similar in different areas in the country, Fox News reported. It was also found out that families living in the Urban areas spend more than those living in rural areas.
Based on the findings, the first most expensive cost was the housing followed by child care, education and food. The study also found out that older kids were more expensive to raise due to clothing, transportation, and health care expenses.
The USDA first released reports like this in 1960 to help families budget and plan for a better future. This year's annual report regarding the costs of raising a child is three percent higher as compared to the 2014 report, which is shown in the video below.
