Sense to Save

A report by the U.S. Department of Agriculture has shown that the average cost of raising a child born in 2007 to age 18 can be expected to reach $148,000 to $298,000, depending on the family’s income.

I didn’t realize raising children was considered an agricultural undertaking. Lol.

These numbers are based on a two-parent, two-child family.

The report showed that if you have just one child, you’ll spend about 24 percent more on that child, on average, than you would if you had two children. But, if you have three or more children, you’ll spend about 23 percent less per child. I guess that’s like four children for the price of three? Lol. That’s a pretty good bargain, if you ask me.

For families with incomes of less than $45k in today’s dollars, they can expect to spend about $148k. For families earning $45,800 – $77,100, they’re in the $204,000 range, and for families earning more than $77,100, they’re in the $298k range per child, if they have two. The figures are adjusted for expected inflation.

I don’t have children yet, so I don’t have any real authority to say how much it costs to raise a child.

But still. $200k? I’m a bit skeptical.

The report points out some limitations with its findings. For example, "[u]nlike food and health care, no research base exists for allocating estimated household expenditures on housing, transportation, and other miscellaneous goods and services among family members. USDA uses the per capita method in allocating these expenses; the per capita method allocates expenses among household members in equal proportions" (page i in report).

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