Cost of raising a child

From Infogalactic: the planetary knowledge core
(Redirected from Costs of raising a child)
Jump to: navigation, search

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

The cost of raising a child is different from the Average Spending on a child (USDA chart below) which is influenced by income. The USDA charts are based on a birth in 2011. If the child is born in earlier years, the total for 18 years is significantly lower, as shown in the H.H.S. data providing the Basic Cost of raising a child.

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

United States

$4,020 per person is the basic annual household income amount that is necessary to stay above poverty guidelines, according to the Department of Health and Human Services for 2013, whether there is one child or many children.[4] Based on the 30 year average inflation rate of 3% increasing the annual cost every year, $72,360 {4020 avg x 18yrs} is the total basic cost of raising a child from birth in 2004 to age 18. $94,100 {5228 avg x 18yrs} is the total basic cost of raising a child from birth in 2013 to age 18. The tax exemption per child is $3900 in 2013 which is also based on the basic cost of raising a child. Plus there is a child tax credit up to $1000 for each child.

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 table shows Spending based on a family with two children on a per-child basis. 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]

There are two tables, the first for two-parent households, the second for single-parent families.[7]

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)

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.

Reference:[7]

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)

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.

Reference:[7]

India

Based on an estimate by Economic Times in March 2011, cost of raising a child from birth to age of majority (21 Years) for middle to upper-middle income family comes to about Rs. 55 Lakh[8] (Rs. 5.5 Million, or about 90,000 USD as of Sep'2014) in total.

Cost break up is as follows:

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%

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

See also

References

  1. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  2. ↑ 2.0 2.1 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. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  5. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  6. ↑ http://abcnews.go.com/Business/page?id=4019746
  7. ↑ 7.0 7.1 7.2 Lua error in package.lua at line 80: module 'strict' not found.
  8. ↑ http://economictimes.indiatimes.com/photo.cms?msid=7998976

External links

Retrieved from "https://infogalactic.com/w/index.php?title=Cost_of_raising_a_child&oldid=722000778"