The USDA released the 2015 Expenditures on Children by Families report, also known as "The Cost of Raising a Child."
The report, developed by economists at USDA's Center for Nutrition Policy and Promotion (CNPP), estimates that for a child born in 2015, a middle-income married-couple family will spend between $12,350 and $13,900 annually (in 2015 dollars) – or $233,610 from birth through age 17 – on child-rearing expenses. Families with lower incomes are expected to spend $174,690 and families with higher incomes are expected to spend $372,210 from birth through age 17. Many state governments use this annual report, first issued in 1960, as a resource in determining child support and foster care guidelines.
"As the economy continues to improve, USDA is committed to supporting the nutrition and health of individuals and families through our research and programs," said Kevin Concannon, Under Secretary for Food, Nutrition and Consumer Services. "This report, which we have produced for 55 years, gives families a greater awareness of the expenses they are likely to face, and serves as a valuable tool for financial planning and educational programs, as well as courts and state governments."
The report details spending by married-couple and single-parent households; for married-couple households, spending in various regions of the country are examined. Housing (29 percent) and food (18 percent) account for the largest share of child-rearing expenses for middle-income, married-couple families, followed by childcare/education (16 percent), transportation (15 percent), and health care (9 percent). Clothing was the smallest expense, at 6 percent, and other miscellaneous child-rearing necessities from birth to age 18 accounted for 7 percent. This report does not include costs related to pregnancy or college costs.
Across the country, costs were highest in the urban Northeast, urban West, and urban South; while lowest in the urban Midwest and rural areas. Much of the regional variation in expenses was related to housing. Differences in child care and education expenses also contributed to regional variation. Overall, child-rearing expenses in rural areas were 24 percent lower than those in the region with the highest expenses, the urban Northeast.
Source: www.cnpp.usda.gov