Cost of raising a child

The cost of raising a child varies from country to country.

The cost of raising a child is usually determined according to a formula that accounts for major areas of expenditure, such as food, housing, and clothing. However, any given family's actual expenses may differ from the estimates. For example, the rent on a home does not usually change when the tenants have another child, so the family's housing costs may remain the same. In other cases, the home may be too small, in which case the family might move to a larger home at a higher cost.

Developing countries

According to Globalissues.org, "Almost half the world — over three billion people — live on less than $2.50 a day."^[1] This statistic includes children. Based on UNICEF statistics, in developing countries the cost is roughly US$900 for raising a child for a year, and US$16,200 for raising a child from birth to age 17.^[2] (This calculation is difficult, since families in developing countries often do not operate with currency, but barter or trade to provide for their children.)^[3] Half of all children in the world live in poverty.^[2]

United Kingdom

The annual LV= (Liverpool Victoria) Cost of a Child report calculates the cost of raising a child from birth to 21 years old. The latest report puts the cost as £231,843.^[4] The Cost of a child calculations, from birth to 21 years, were compiled by the Centre of Economic and Business Research (CEBR) for LV= in December 2015 and are based on the cost for the 21-year period to December 2015. Additional research was conducted by Opinium Research LLP from 22 to 27 January 2016. The total sample size was 1,000 UK adults with children under the age of 18 and was conducted online. Results have been weighted to nationally representative criteria

United States

The tax exemption per child is $3,900 in 2013 which is based on the basic cost of raising a child. Plus there is a tax credit up to $1000 for each child.citation needed

As stated by Texas A&M University Finance Professor H. Swint Friday, "The numbers, reported by the U.S. Department of Agriculture, are misleading to the point of outrageous. Often government statistics are produced for political objectives that cause the research methodology to be biased toward finding the highest dollar amount to support the objective."^[5]

Based on a survey by the U.S. Department of Agriculture, the table below shows the estimated Average Spending on Children by Families. The data comes from the Consumer Expenditure Survey by the U.S. Department of Labor, conducted from 2005-06. The figures have been updated to 2011 dollars using the Consumer Price Index.

These figures from the USDA go up to age 18, and do not include any college or university education. Nor does it offer any spending estimates if the child remains in the home as a dependent after the age of 18.^[6]

Both tables are for the United States overall, not based on any specific region in the country.

Dual-Parent Family - USDA Average Spending per Child (not the basic cost of raising)

Dual-Parent Family - USDA Average Spending per Child (not the basic cost of raising)^[7]

Age of Child	Housing	Food	Transport.	Clothing	Health	Child Care /Education	Misc.	Total
Before-tax income: Less than $59,410 (Average = $38,000)
0 to 2	2,990	1,160	1,170	640	630	2,040	420	9,050
3 to 5	2,990	1,260	1,230	500	590	1,910	620	9,100
6 to 8	2,990	1,710	1,350	570	660	1,290	630	8,760
9 to 11	2,990	1,970	1,350	580	710	1,910	630	9,520
12 to 14	2,990	2,130	1,480	690	1,090	1,110	700	9,960
15 to 17	2,990	2,120	1,630	730	1,010	1,290	580	9,970
Total	53,820	31,050	24,630	11,130	14,070	23,640	10,740	169,080
Before-tax income: $59,410 to $102,870 (Average = $79,940)
0 to 2	3,920	1,405	1,690	760	850	2,860	890	12,370
3 to 5	3,920	1,490	1,740	610	800	2,740	1,090	12,390
6 to 8	3,920	2,100	1,860	680	940	1,680	1,110	12,290
9 to 11	3,920	2,400	1,870	710	1,000	2,110	1,100	13,110
12 to 14	3,920	2,580	1,990	840	1,410	1,910	1,170	13,820
15 to 17	3,920	2,570	2,150	900	1,330	2,400	1,050	14,320
Total	70,560	37,620	33,900	13,500	18,990	41,100	19,230	234,900
Before-tax income: More than $102,870 (Average = $180,040)
0 to 2	7,100	1,900	2,550	1,050	980	5,090	1,790	20,460
3 to 5	7,100	2,000	2,610	880	930	4,970	1,990	20,480
6 to 8	7,100	2,630	2,730	970	1,080	3,910	2,000	20,420
9 to 11	7,100	2,980	2,730	1,010	1,150	4,350	2,000	21,320
12 to 14	7,100	3,190	2,860	1,170	1,610	4,700	2,070	22,700
15 to 17	7,100	3,180	3,020	1,280	1,520	6,460	1,950	24,510
Total	127,800	47,640	49,500	19,080	21,810	88,440	35,400	389,670

All numbers are in US dollars.

Also notice that the dual parent and solo parent charts use different income ranges so that an accurate comparison cannot be obtained.

Single-Parent Family - USDA Average Spending per Child (not the basic cost of raising)

Single-Parent Family - USDA Average Spending per Child (not the basic cost of raising)^[7]

Age of Child	Housing	Food	Transport.	Clothing	Health	Child care /Education	Misc.	Total
Before-tax income: Less than $40,410 (Average = $18,350)
0 to 2	2,840	1,400	680	410	520	1,400	510	7,760
3 to 5	2,840	1,370	920	330	600	1,940	610	8,610
6 to 8	2,840	1,830	1,030	340	670	1,940	780	8,450
9 to 11	2,840	2,010	1,060	400	620	1,360	740	9,030
12 to 14	2,840	2,150	1,130	420	940	1,120	840	9,440
15 to 17	2,840	2,270	1,130	460	930	880	670	9,180
Total	51,120	33,090	17,850	7,080	12,840	22,980	12,450	157,410
Before-tax income: $59,410 or more (Average = $107,820)
0 to 2	5,880	2,080	1,920	590	980	3,670	1,650	16,770
3 to 5	5,880	2,070	2,160	500	1,090	4,210	1,750	17,660
6 to 8	5,880	2,680	2,260	530	1,180	3,350	1,930	17,810
9 to 11	5,880	3,000	2,300	610	1,110	3,880	1,880	18,660
12 to 14	5,880	3,080	2,370	650	1,560	4,150	1,980	19,670
15 to 17	5,880	3,220	2,370	730	1,550	5,010	1,810	20,570
Total	105,840	48,390	40,140	10,830	22,410	72,810	33,000	333,420

All numbers are in US dollars.

India

Based on an estimate by Economic Times in April 2011, cost of raising a child from birth to age of majority (21 Years) for middle to upper-middle income family comes to about ₹55 lakh (US$82,000) in total.^[8]

Cost break up is as follows:

Cost of raising a child in India (as of April, 2011)

Expenditure Class	Estimated Cost (Rs. Lakh)	% of Cost
Education	25.19	46%
Housing	10.40	19%
Entertainment	6.57	12%
Clothing	3.29	6%
Food	2.74	5%
Transportation	2.74	5%
Healthcare	2.19	4%
Others	1.64	3%
Total	54.75	100%

Note: Estimate assumes cost of birth, but doesn't consider any major illness in child.

See also

Only child Child care Child support Childfree Cost of living

Demographic economics Family economics Family planning

Family values Single parent Middle class squeeze

References

1. Shah, Anup (September 20, 2010). "Poverty Facts and Stats". Global Issues. Retrieved August 5, 2012.
2. State of the World's Children, 2005, UNICEF
3. Martin Ravallion, Shaohua Chen and Prem Sangraula, Dollar a day revisited, World Bank, May 2008
4. "Cost of a child | LV=". www.lv.com. Retrieved 2016-06-27.
5. Friday, H. Swint (July 20, 2007). "Cost of raising children not as high as government would have you believe". caller.com. Retrieved March 31, 2013.
6. http://abcnews.go.com/Business/page?id=4019746
7. Lino, Mark. "Expenditures on Children by Families, 2011 (Miscellaneous Publication Number 1528-2011)" (PDF). United States Department of Agriculture, Center for Nutrition Policy and Promotion. Retrieved August 5, 2012.
8. "How much it cost to raise a child" (pdf). report. Economic Times. 18 April 2011. Retrieved 13 July 2016.

External links

• "Raising that '07 baby will cost $204,060 in U.S." - from Reuters, retrieved August 5, 2012.
• "Cost of raising children not as high as government would have you believe" - from caller.com, retrieved March 31, 2013.
• "Cost of Raising Children in the US" - from Globe Life Insurance, retrieved September 11, 2013