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

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. However, some dispute the numbers as being biased high for political reasons (e.g., Texas A&M University Finance Professor H. Swint Friday: "The numbers, reported by the U.S. Department of Agriculture, are outrageously misleading. 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]).

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		HousingFoodTransport.ClothingHealthChild Care
/Education		Misc.Total
Before-tax income: Less than $59,410 (Average = $38,000)
0 to 22,9901,1601,1706406302,0404209,050
3 to 52,9901,2601,2305005901,9106209,100
6 to 82,9901,7101,3505706601,2906308,760
9 to 112,9901,9701,3505807101,9106309,520
12 to 142,9902,1301,4806901,0901,1107009,960
15 to 172,9902,1201,6307301,0101,2905899,970
Total53,82031,05024,63011,13014,07023,64010,740169,080
Before-tax income: $59,410 to $102,870 (Average = $79,940)
0 to 23,9201,4051,6907608502,86089012,370
3 to 53,9201,4901,7406108002,7401,09012,390
6 to 83,9202,1001,8606809401,6801,11012,290
9 to 113,9202,4001,8707101,0002,1101,10013,110
12 to 143,9202,5801,9908401,4101,9101,17013,820
15 to 173,9202,5702,1509001,3302,4001,05014,320
Total70,56037,62033,90013,50018,99041,10019,230234,900
Before-tax income: More than $102,870 (Average = $180,040)
0 to 27,1001,9002,5501,0509805,0901,79020,460
3 to 57,1002,0002,6108809304,9701,99020,480
6 to 87,1002,6302,7309701,0803,9102,00020,420
9 to 117,1002,9802,7301,0101,1504,3502,00021,320
12 to 147,1003,1902,8601,1701,6104,7002,07022,700
15 to 177,1003,1803,0201,2801,5206,4601,95024,510
Total127,80047,64049,50019,08021,81088,44035,400389,670

All numbers are in US dollars.

Also notice that the dual parent and solo parent charts use different income ranges so that direct comparison between the two should be undertaken with care.

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		HousingFoodTransport.ClothingHealthChild care
/Education		Misc.Total
Before-tax income: Less than $40,410 (Average = $18,350)
0 to 22,8401,4006804105201,4005107,760
3 to 52,8401,3709203306001,9406108,610
6 to 82,8401,8301,0303406701,9407808,450
9 to 112,8402,0101,0604006201,3607409,030
12 to 142,8402,1501,1304209401,1208409,440
15 to 172,8402,2701,1304609308806709,180
Total51,12033,09017,8507,08012,84022,98012,450157,410
Before-tax income: $59,410 or more (Average = $107,820)
0 to 25,8802,0801,9205909803,6701,65016,770
3 to 55,8802,0702,1605001,0904,2101,75017,660
6 to 85,8802,6802,2605301,1803,3501,93017,810
9 to 115,8803,0002,3006101,1103,8801,88018,660
12 to 145,8803,0802,3706501,5604,1501,98019,670
15 to 175,8803,2202,3707301,5505,0101,81020,570
Total105,84048,39040,14010,83022,41072,81033,000333,420

All numbers are in US dollars.

India

Based on an estimate by Economic Times in April 2011, the cost of raising a child from birth to age of majority (21 Years) for a middle to upper-middle income family comes to about ₹55 lakh (US$77,000) in total.[8]

Cost break up is as follows:

Cost of raising a child in India (as of April, 2011)
Expenditure ClassEstimated Cost (Rs. Lakh)% of Cost
Education25.1946%
Housing10.4019%
Entertainment6.5712%
Clothing3.296%
Food2.745%
Transportation2.745%
Healthcare2.194%
Others1.643%
Total54.75100%

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

See also

References

  1. ↑ Shah, Anup (September 20, 2010). "Poverty Facts and Stats". Global Issues. Retrieved August 5, 2012.
  2. 1 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. 1 2 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.
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