It costs more than $220k to raise a child, USDA says

08.05.09
By Sarah Beldo

In the past several months, a number of studies and media reports have suggested that Americans are cutting back on spending and trying to repay credit card debt as a response to the recession.

And now, a new report from the USDA focuses on one of the major expenses facing U.S. families: the cost of raising a child.

According to findings contained in the department's Expenditures on Children by Families report, it will cost approximately $221,190 to raise a child who is born to a middle-income family in 2008.

This price tag covers food, shelter and other necessities required to bring that child up from their birth until they reach the age of 18. Costs do not include childbearing expenses or college tuition.

How does it break down on a year-by-year basis? The USDA says that in 2008, middle-income two-parent families can expect to pay between $11,610 and $13,480 on raising their kid, depending on how old the child is.

If you break it down by category, housing comprises the most spending, followed by food. Child care and education are next on the list - that is, for families who have that expense.

While the cost of raising a child may be high regardless of the country's economic health, during a recession families should be conscious of the amount of credit card debt they are accumulating and practice savvy debt management strategies.

A recent report from Demos found that the average credit card debt carried by low- and middle-income households is $9,827, which takes approximately 5.1 years to pay off.

The report raised concerns that U.S. families are increasingly relying on credit cards as a safety net, or even using plastic to pay for daily necessities.

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It will cost approximately $221,190 to raise a child born in 2008.