The Future of Kids

According to statistics from the United States Department of Agriculture and FutureAdvisor, the cost of raising a child born in 2013 until he or she reaches the age of 18 is a whopping $245,340. This figure reflects the cost of housing, transportation, food, clothing, healthcare, education, and other miscellaneous costs for a middle-income couple. As most children don’t attend college until after the age of 18, this estimate does not include the cost of sending a child to college. The reported figure represents a 2% increase from the amount require to raise a child born one year earlier.

Factors that Affect Cost

The cost of raising a child is affected by several factors. Firstly, the cost of living is more expensive in certain areas of the United States, such as the northeast and the west coast. Income also affects how much parents spend, with those in higher income brackets more likely to spend more on their children. For instance, a high-income couple from an urban center in the northeast could spend a total of $455,000 to raise a child born in 2013. On the other end of the spectrum, a low-income, rural couple could spend as little as $145,500 on a child born the same year.

Annual Growth

While the cost of raising a child has grown in recent years, certain areas of growth are slowing, for instance the cost of food and clothing. Growth is slowing in these areas in accordance with the growth of the inflation rate. On the other hand, some aspects that factor into the cost of raising a child are growing – for instance, health and child care costs. In some states, the monthly cost of child care is above the median cost of rent. Healthcare costs are also rising. Couples without health insurance may find themselves facing financial difficulties when their children need to see a doctor.

Predictions

The cost of raising a child will continue to grow in the years to come. Although growth slow for certain factors, such as transportation, housing, and food costs, it will grow drastically in others, such as the cost of healthcare, education, and child care. For the cost of raising a child to decrease, healthcare and child care reforms are necessary.

Outcomes

As a result of increasing costs, more and more couples are waiting longer to have children. The birth rate in America is in a slump and has been declining since the Great Recession began in 2007. While the state of the economy doesn’t necessarily stop couples from having children, it can cause them to think twice or put off child birth. The average age that a woman first gives birth in the United States was 25.4 in 2009, according to the CIA World Factbook.

Quick Summary

The cost of raising a child reached an all-time high in 2013 as it approaches $250,000. This cost will continue to grow in the coming years, as childcare, education, and healthcare costs continue to grow at exorbitant rates. As a result, couples may decide to wait longer, ensuring they are financially established prior to starting a family.