Question: How Much Does It Cost to Raise A Child Born in 2015?
Answer (you better thank your parents): $233,610
- Full explanation of that figure: The estimated expense to raise a child from birth through age 17 is $233,610 (in 2015 dollars) for a middle-income (before-tax income between $59,200 and $107,400), married-couple family with two children.
- Oh, but it doesn’t include college costs, per the report: “Expenditures estimated in this study are made on children from birth through age 17 for seven major budgetary components. One of the largest excluded expenses is the cost of a college education. The College Board (2016) estimated that in 2016-17, annual average (enrollment-weighted) tuition and fees were $9,650 at 4-year public colleges (in-State tuition) and $33,480 at 4-year private (non-profit) colleges; annual room and board was $10,440 at 4-year public colleges and $11,890 at 4-year private colleges. For 2-year colleges in 2016-17, annual average tuition and fees were $3,520 at public colleges.”
Knowing my inquisitive readers, I figured your next question was, “How does this break out by expense type?” From the report, the big four are housing, food, child care and education and transportation:
On the topic of budgets, check out one of NGPF’s most popular activities: Creating a Salary Based Budget
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.