Tuesday, August 19, 2014
New parents should be warned that it could cost almost a quarter of a million dollars to raise a child—not including the cost of college. According to newly released estimates from the U.S Department of Agriculture, raising a child born in 2013 to the age of 18, it will cost a middle-income couple just over $245,000.
While childcare and health care costs are rising, the country’s median income remains where it was before the recession. Growing transportation and food costs also consume a large part of family budgets.
For families who are trying to cut costs, consider looking on local parenting blogs or websites to find everything from free baby clothes to a family looking to share a nanny. Make sure to take advantage of tax credits. Many employers offer tax-advantaged accounts that let parents pay for health and child care expenses with before-tax dollars. Moreover, make sure to plan ahead. Expectant parents should prepare for the added costs ahead of time and try to save each month.
See Melanie Hicken, Average Cost to Raise a Child Hits $245,00, ABC 7, Aug. 18, 2014.