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| Leonardo DaVinci's drawing of Foetus in Womb |
It costs a lot of money to raise a child in this country. The U.S. Department of Agriculture (USDA) released "The Cost of Raising a Child" earlier this month. 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.
That means that over one quarter of a median household's income can be allocated to taking care of a child.
In the black community, however, Black Median Household income is only $35,481.
Another startling statistic is that about 15 million children in the United States – 21% of all children – live in families with incomes below the
federal poverty threshold, a measurement that has been shown to underestimate the
needs of families. (http://nccp.org/topics/childpoverty.html)
According to CNN, two out of every five black kids are living in poverty. A Pew Research analysis defined poverty as a
family of four with two children that has income of less than $24,000 a
year.
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."
"Understanding the costs of raising children and planning for
anticipated and unexpected life events is an important part of securing
financial health. The U.S. Department of the Treasury, among other
Federal agencies, has a wealth of information and tools that can help
Americans plan for their future.
MyMoney.gov
can help you make a budget, find assistance with child care costs and
save for emergencies or big purchases like a home or college education,"
said Louisa Quittman, Director of the Office of Financial Security for
the U.S. Department of the Treasury.
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.
It is important to note that child-rearing costs vary greatly depending
on the number and ages of children in a household. As family size
increases, costs per child generally decrease. Report author and CNPP
economist Mark Lino, PhD emphasized how significantly costs are impacted
by the number of children in a household.
As a result, compared to a child in a two-child family, families with
one child spend 27 percent more on the only child and families with
three or more children spend 24 percent less on each child.
CNPP economists used data from the most recent Consumer Expenditure
Survey to present the most recent and comprehensive estimates. The full
report, Expenditures on Children by Families, 2015, is available on the
web at
CNPP.usda.gov. The CNPP website also offers downloadable
infographics and an interactive
Cost of Raising a Child Calculator that can be used to view costs associated with different geographic locations, income levels and family sizes.
