Thursday, November 6, 2008

The Cost of Raising Children

Can you believe how expensive it is to raise kids?!?!?!
I take this as a challenge and think that I can do a better job for way less than this:


The table below shows the estimated annual costs of raising a child, based on a survey by the U.S. Department of Agriculture. The table shows costs based on a family with two children on a per-child basis. The data comes from the Consumer Expenditure Survey by the U.S. Department of Labor, conducted from 1990-92.The figures have been updated to 2001 dollars using the Consumer Price Index.

The USDA ends its cost survey when a child legally becomes an adult at age 18. It does not include any estimates for sending your children to college nor does it offer any cost estimates if your child remains in your home as a dependent after the age of 18. The College Board reports that in the 1998-99 school year, a resident student at a four-year private college will spend about $23,578 a year; a student at a public college will pay $9,008 a year.

See the footnotes¹ below for further information. If you're a single-parent family, use the Single-Parent Family table.





Dual-Parent Family
Age
of Child
Housing Food Transportation Clothing Health Child care/
Education
Miscellaneous Total
Before-tax income: up to $39,100
0 to 2 2,500 910 780 370 460 840 630 6490
3 to 5 2,470 1,010 750 360 440 820 680 6,630
6 to 8 2,380 1,300 880 400 510 560 680 6,710
9 to 11 2,150 1,560 950 450 560 340 720 6,730
12 to 14 2,400 1,640 1,070 750 560 240 900 7,560
15 to 17 1,940 1,780 1,440 660 600 400 660 7,480
Total 41,520 24,600 17,610 8,970 9,390 9,990 12,720 124,800

Before-tax income: $39,100 to $65,800
0 to 2 3,380 1,090 1,160 430 610 1,380 980 9,030
3 to 5 3,350 1,260 1,130 420 580 1,530 990 9,260
6 to 8 3,260 1,600 1,260 470 660 980 1,030 9,260
9 to 11 3,030 1,890 1,330 520 720 640 1,250 9,190
12 to 14 3,280 1,900 1,450 870 720 470 1,250 9,940
15 to 17 2,820 2,110 1,840 780 770 810 1,010 10,140
Total 57,360 29,550 24,510 10,470 12,180 17,430 18,960 170,460

Before-tax income: $65,800 and up
0 to 2 5,370 1,440 1,630 570 700 2,090 1,630 13,430
3 to 5 5,340 1,630 1,600 560 670 2,270 1,650 13,720
6 to 8 5,250 1,970 1,720 610 770 1,560 1,690 13,570
9 to 11 5,020 2,290 1,800 670 820 1,090 1,720 13,410
12 to 14 5,270 2,400 1,920 1,100 830 840 1,900 13,170
15 to 17 4,810 2,530 2,330 1,000 870 1,470 1,660 14,670
Total 93,180 36,780 33,000 13,530 13,980 27,960 30,750 249,180

Single-Parent Family

Age
of Child
Housing Food Transportation Clothing Health Child care/
Education
Miscellaneous Total
Before-tax income: up to $39,100
0 to 2 2,240 1,010 730 330 220 530 380 5,440
3 to 5 2,550 1,060 640 350 330 720 500 6,150
6 to 8 2,710 1,340 740 410 390 650 670 6,910
9 to 11 2,600 1,550 530 420 490 310 540 6,440
12 to 14 2,600 1,550 620 710 520 400 520 6,920
15 to 17 2,760 1,690 970 830 520 300 600 7,670
Total 46,380 24,600 12,690 9,150 7,410 8,730 9,630 118,590

Before-tax income: $39,100 and up
0 to 2 4,820 1,560 2,220 470 510 1,290 1,580 12,450
3 to 5 4,820 1,650 2,130 500 690 1,620 1,690 13,410
6 to 8 5,290 1,980 2,240 570 790 1,510 1,870 14,250
9 to 11 5,180 2,380 2,030 580 950 880 1,740 13,740
12 to 14 5,190 2,380 2,110 950 1,000 1,260 1,720 14,560
15 to 17 5,340 2,470 2,290 1,090 990 1,030 1,800 15,010
Total 92,850 37,110 39,060 12,480 14,790 22,770 31,200 250,260
Source: U.S. Department of Agriculture. Estimates are based on 1990-92 Consumer Expenditure Survey updated to 2001 dollars using the Consumer Price Index.


¹ The figures represent estimated expenses on the younger child in a two-child family. Estimates are about the same for the older child, so a family of two would then double the total cost. Thus, a family with two children and an income of less than $39,100, could expect to spend somewhere around $249,600, for two children by the time they each had reached age 18. If you have only one child, the USDA assumes you'll spend slightly more on that child and suggests multiplying the total expense for the appropriate age category by 1.24. If you have three or more children, the USDA assumes you'll spend slightly less per child. To estimate expenses for each child in a family with three or more children, multiply the total expense for each appropriate age category by 0.77. For expenses on all children in a family, these totals should be summed.

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