In the United States, the average cost of raising a child from birth to age 17 has increased by 16% since 1960 – when data was first collected. In 1960, the average total spending on a child in a middle-income family was $202,020, adjusted for inflation. By 2015 – the most recent data available on the costs of raising children – this estimated spending had risen to $233,610.
According to data from the U.S. Department of Agriculture (USDA), a child born in 2015 in a middle-income family costs approximately $12,980 to $13,900 annually, depending on the child’s age. Inflation adjustments increase these costs by 23% in 2022, ranging from $16,007 to $17,141 per child.
The costs of childbirth alone have been steadily increasing over the past two decades. In 2019 – the most recent data available – hospitals in the U.S. charged patients an average of $22,876 for the procedure. This is more than three times what was charged in 2000 ($6,340), according to data from the Department of Health and Human Services.
Where Does the Money Go?
For a middle-income family, housing accounts for the largest share of child-rearing costs, at 29%. Food is the second largest cost of raising children, at 18%. Childcare and education is the third largest expense at 16%.
Child-rearing in the United States has changed significantly since 1960. For example, at that time, childcare costs mainly went towards hiring babysitters to help at home. But as more women entered the workforce, the demand for care increased. Childcare and education rose from 2% of the cost of raising children in 1960 to 16% in 2015, the largest increase among all expense categories.
Expenses rise as family income increases.
Another relevant finding from the USDA research is that as family income increases, so does the average amount spent on raising children. For example, families (considering here a couple with two children) earning less than $59,200 per year spend between $9,330 and $9,980 per child. Families earning more than $107,400 spend more than double that amount per child.
As Age Increases, Costs Also Increase
No matter what a family’s income is, the costs of raising children change depending on the children’s ages.
In the early years, childcare expenses account for a larger share of total costs. Childcare and education expenses are generally higher for children aged 6 and under due to expenses for preschool and private daycare.
As children reach school age, childcare costs decrease, but costs for food, health, and clothing tend to rise.
And when children reach adolescence, the cost equation changes again. Transportation expenses are higher for children aged 15 to 17. As teenagers begin to drive, transportation expenses such as insurance and vehicle purchases can impact the costs of raising a child for some families.
Families in the Northeast Spend More on Raising Children
Families in the Northeast of the United States are the highest spenders on raising their children, followed by families in the West. The costs of raising a child in rural areas are 27% lower than in the Northeast. This is mainly due to lower costs for expenses such as housing and daycare.
Source: USA Facts