How Much Does It Cost to Raise a Child in the U.S.?

The average cost of raising a child in the United States, from birth to age 17, has increased by 16% since 1960. In 1960 (when this data was first collected), average-income couples spent an average total of $259,711 on a child by age 17, adjusted for inflation to 2023 dollars. In 2015 — the most recent data available on child-rearing costs — these estimated expenses rose to $300,322.What is the average annual cost of raising a child?According to data from the U.S. Department of Agriculture (USDA), average-income families (families earning between $76,106 and $138,070 in 2023) spent an average of between $15,877 and $17,869 annually to raise a child in 2015 (depending on the child’s age).The USDA publishes a report on child expenses per family, detailing expenses by child’s age, family income, family budget, and region of the country. Its latest report, released in 2017, analyzes data from 2015 and previous years.What do parents spend the most money on?For an average-income family, housing represents the largest portion of child costs, at 28%. Food is the second largest cost of raising children, at 18%. Childcare and education together are the third largest expense, at 16%, followed by transportation at 15%.According to the USDA, housing costs include any form of shelter (mortgage payments, property taxes, rent, and/or insurance), utilities (gas, electricity, fuel, cell phone, and water), and furniture and household equipment.Childcare and education expenses include daycare fees, babysitters, as well as tuition for private schools and extracurricular activities. Note that these costs exclude college expenses, which only become a cost after the child turns 18.When in a child’s life do parents spend the most?For all income levels, child expenses were highest when children were between 15 and 17 years old. It is at these ages that expenses for transportation, healthcare, and food peak.Where does it cost the most to raise children?Couples in the Northeast of the country spent the most on children, followed by families in urban West and urban South. Child costs for rural families across the country were 27% lower than in urban Northeast, primarily due to lower housing and childcare costs.Source: USA Facts