How Much Money Does It Take to Raise a Child?

Raising a child can be very expensive.

While many people think that parenting is the most rewarding job in the world, it can be very expensive. Between birth and age 17, a child needs many resources that can add up to big bucks over time. According to a report by the U.S. Department of Agriculture, it can cost between $205,000 and $475,000 to raise a child born in 2009, depending on your overall income bracket. If you are considering starting your own family, be aware of all the costs of raising a child.

Housing and Food

Housing generally accounts for around 35 percent of the overall cost of raising a child, according to Parent Dish. Housing costs may include the cost of shelter, such as your mortgage payment or rent, repairs, maintenance and utilities. People with children often need larger homes or apartments that have at least one designated room or area for the child's bedroom. Other housing costs may include furnishings and appliances. Some people include food expenses as part of housing, but food expenses account for an additional 17 to 34 percent of the overall costs of raising a child, according to Missouri Families.

Healthcare

Healthcare expenses can account for up to 16 percent of the total cost of raising a child, and this number reflects the cost for a healthy child. Some common healthcare costs may include insurance premiums for medical, dental and vision coverage. Healthcare costs also include the costs associated with medical and dental services that are not covered by insurance. Prescriptions, vaccinations and glasses or contacts also contribute to this cost.

Childcare and Education

Childcare costs can account for up to 22 percent of the overall cost of raising a child. The actual cost of childcare fluctuates with age, and this expense can be a direct cost paid to childcare providers, such as daycare facilities. It can also be included in the money lost when one parent decides to leave the workforce or take a lower-paying or part-time position in order to have a flexible schedule. Estimated education costs here include elementary, junior high and high school expenses, but not college. The cost of raising a child through high school includes expenses such as supplies, books and any private school tuition fees.

Miscellaneous Costs

Miscellaneous costs account for around 10 to 12 percent of the overall cost of raising a child. These types of expenses may be considered as the surprise fees for which parents never planned. They may include the costs of toys, club fees, entertainment expenses and personal care items.

References

• BabyCenter: Cost of Raising Your Child
• Parent Dish: The Cost of Raising a Child in 2010
• Missouri Families: What Does It Cost to Raise a Child?
• U.S. Department of Agriculture: Expenditures on Children by Families, 2009