How Much Does It Cost to Raise a Child? A Practical Breakdown

Children bring immeasurable joy, and also significant expenses. From diapers and daycare to braces and car insurance, the costs of raising a child add up over nearly two decades. Knowing where the money goes can help you plan ahead without panic, whether you’re thinking about starting a family or already raising kids.

The big picture

The U.S. Department of Agriculture’s most recent estimate, released in 2017, found that a middle-income married couple with two children would spend about $233,610 to raise a child born in 2015 through age 17. That figure doesn’t include college, and prices have risen since then, so today’s costs are likely higher.

Keep in mind that this is an average estimate. Actual costs vary widely depending on where you live, your income, your family size, your childcare choices and your lifestyle. Families in high-cost areas generally spend more, while those in lower-cost areas may spend less. Higher-income families also tend to spend more on children.

Rather than being overwhelmed by a large total, it can help to think of child-raising costs as monthly and yearly expenses spread over many years, which you can plan for in your budget.

Where the money goes

Housing is often the largest share of child-raising costs. Families typically need more space as they grow, which may mean a larger home or apartment with higher rent or mortgage payments, along with higher utility costs.

Food costs rise as kids grow. Teenagers, in particular, can significantly increase a family’s grocery bill.

Childcare and education can be the biggest cost in the early years. Full-time childcare for infants and toddlers can be very expensive, sometimes rivaling the cost of college tuition in some areas. As children enter school, costs shift to school supplies, fees, field trips and possibly private school tuition or tutoring.

Transportation costs include car seats, possibly a larger vehicle, gas for school runs and activities, and later, car insurance and possibly a car for a teenage driver.

Health care costs include insurance premiums, copays, prescriptions, dental care, vision care and orthodontics, such as braces, which can be a significant expense.

Clothing, activities and everything else add up too. Kids outgrow clothes and shoes quickly, especially in the early years. Sports, music lessons, camps, birthday parties, toys, technology, phones and personal care items all contribute to costs.

Costs change with age

Child-raising costs shift as children grow. Infants and toddlers can mean high childcare costs, along with diapers, formula, baby gear and frequent doctor visits.

School-age kids add activities, school expenses, sports and hobbies. Childcare costs may decrease once children are in school full-time, though before- and after-school care and summer camps may still be needed.

Teens often mean higher food costs, phones, car insurance, activities, clothing and social expenses. Preparing for college, such as test prep, application fees and campus visits, adds further costs.

Understanding these shifts helps you plan for upcoming expenses before they arrive.

Ways to plan and manage costs

Build a family budget that includes kids’ costs. Tracking what you actually spend on your children helps you plan and identify areas to save.

Use tax benefits if you qualify. The Child Tax Credit can reduce your taxes for each qualifying child. The Child and Dependent Care Credit helps offset childcare costs while you work, and dependent care flexible spending accounts let you pay for childcare with pre-tax dollars. Check irs.gov for current rules and amounts.

Buy used clothes, gear and toys. Children outgrow items quickly, so secondhand items, hand-me-downs and swaps can save significantly.

Use sinking funds for predictable costs like birthdays, holidays, back-to-school shopping and activity fees. Setting aside a little each month prevents these expenses from straining your budget.

Keep an emergency fund sized for your growing family. Unexpected expenses, such as medical bills or car repairs, can arise more often with children.

Look into assistance programs if you qualify, such as childcare subsidies, CHIP or Medicaid for children’s health coverage, WIC and school meal programs.

Planning for the future

Beyond everyday costs, consider long-term goals. Saving for college, such as through a 529 plan, can reduce future borrowing. Protecting your family with life insurance and a will that names a guardian ensures your children are cared for if something happens to you. Balancing these goals with saving for your own retirement is important too.

Every family is different

Your costs depend on where you live, your childcare choices, your values and your lifestyle. Averages are useful for context, but tracking your own spending gives you your real numbers. With planning and thoughtful choices, families at many income levels raise happy, healthy children while staying financially secure.