The average cost of raising a child to the age of 18 has grown to $245,000 for middle income couples by 2% since last year. The estimates are dependent on the income levels and place of residents of parents. For example, high income families who live in the Northeast are expected to spend $455,000 raising a child. On the other hand, low income parents living in rural areas are estimated to only spend $145,500.
While costs have grown, they have began to grow more slowly due to low inflation rates. However, while the calculations include the cost of housing food, transportation, healthcare, etc., they do not include the cost of college. For parents, paying for higher education has always been the biggest burden, and the costs of doing so continue to increase.
Childcare is another huge cost for parents, especially now that most families require both parents to work. According to a report by the Child Care Awareness of America’s, in 2012 center based care for an infant cost more than median rent payments in approximately 50% of states.
According to a CNNMoney article, a few ways to ease costs include:Use your community, take advantage of people willing to share hand-me-downs.
- Use your community, take advantage of people willing to share hand-me-downs.
- Take advantage of tax credits
- Plan and Save Ahead- estimate your child’s expenses and attempt to save that amount each month before the child is born.
Want to calculate the cost of raising your child? Click here.
Read more here- “Average Cost of Raising a Child Hits $245,000,” (Melanie Hicken, CNNMoney)