WASHINGTON—Expecting a baby? Congratulations! Better put plenty of money in your savings account.
The Department of Agriculture says the estimated cost of raising a child from birth through age 17 is $233,610, or almost $14,000 annually. That’s the average for a middle-income couple with two children. It’s a bit more expensive in urban parts of the country and less so in rural areas.
The estimate released Jan. 9 is based on 2015 numbers, so a baby born this year is likely to cost even more. It’s a 3 percent increase from the prior year—a hike higher than inflation.
Since 1960, the USDA has compiled the annual report to inform—and probably terrify—budget-preparing parents. State governments and courts also use the information to write child support and foster care guidelines. The main costs include housing, food, transportation, health care, education, clothing. and other miscellaneous expenses.
Here’s what to know about the costs of raising a child:
Housing
Up to a third of the total cost is housing, accounting for 26 to 33 percent of the total expense of raising a child. The USDA comes up with those numbers by calculating the average cost of an additional bedroom—an approach the department says is probably conservative, because it doesn’t account for those families who pay more to live in communities that have better schools or other amenities for children.
Urban Versus Rural
The cost of raising a child varies in different regions of the country. Overall, middle-income, married-couple families in the urban Northeast spent the most ($253,770), followed by those in the urban
