Thinking about having kids? Is the baby market recession proof?
The latest report released by the US Department of Agriculture found that the cost of raising a child born in 2010 until he or she turns 18 has sky-rocketed to $226,920 for middle class families. This statistic is up 2 percent from the previous year.
According to an article by the Herald Sun, the study says this increase can be blamed on transportation, childcare, education, and healthcare costs. The average two-parent family studied spent between $11,880 and $13,830 on each child in 2010. According to the study, an average middle class income in the U.S. ranges between $57,600 and $99,730.
The government study, which began back in 1960, has consistently found that families that make more money spend more money on their children and vice versa. Overall they found that families earning less than $57,600 a year spent approximately $163,440 on their child while parents earning more than $99,730 a year spent approximately $377,040.
According to Reuters, housing consistently accounts for a large portion of the budget, nearly 31 percent of the total spent on the child. The second largest expense is child care and education, accounting for 17 percent. Food comes in at third place, ranking in at 16 percent of the total budget. The report does not account for expenses incurred during college.
Geographically the cost to raise a child varies by as much as $2,500 per year. The most expensive area to raise a child is said to be the urban Northeast. Meanwhile the least expensive area is the rural South.
According to Parentdish.com, if you are 50-years-old you grew up with a dramatically cheaper upbringing. Statistics demonstrate that health care was only 4 percent of the cost of raising a child during this time period. In similar suite, education and child care accounted for only 2 percent of the total budget for previous generations.
Still thinking of having kids? Calculate the cost of your future child at http://www.babycenter.com/cost-of-raising-child-calculator.