Cost of raising a child to age 18 nearly a quarter-million dollars, study finds (2024)

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Cost of raising a child to age 18 nearly a quarter-million dollars, study finds? ›

On average parents spend nearly a quarter of a million dollars ($237,482) to raise a child up to age 18. Beyond that, the costs skyrocket with the cost of college. The most expensive state to raise a child is Hawaii. Connecticut came in at number 7, New Jersey at 12, and New York was 14th on the list.

But how much does it cost to raise a child in the UK? Child Poverty Action Group (CAPG) ran a report to find the average total of having children in 2021. They found that up to the age of 18, the cost of raising a child in a single parent family costs a staggering £193,801 compared to £160,692 for couples.

If you've been wondering how much it costs to have a baby and raise them, a 2015 study by the USDA found that it costs an estimated $233,610 to raise a child from birth to age 17. That figure, adjusted for inflation, is just over a quarter of a million dollars at $286,000.

Housing, food and childcare make up the largest percentage of children's expenses. As children grow, you can expect to pay for things including hobbies, sports teams. When adjusting USDA estimates for inflation, parents can expect to pay between $16,227 and $18,262 a year raising a child born in 2023.

The Cost of Raising a Child

Middle-income, married-couple parents of a child born in 2015 may expect to spend $233,610 ($284,570 if projected inflation costs are factored in*) for food, shelter, and other necessities to raise a child through age 17. This does not include the cost of a college education.

On average parents spend nearly a quarter of a million dollars ($237,482) to raise a child up to age 18. Beyond that, the costs skyrocket with the cost of college. The most expensive state to raise a child is Hawaii.

"There's so much that goes into child care, including rent, payroll, insurance and much more. When all those costs shoot up, the overall cost of child care does, too." That means the typical family is spending about $237,482 over the course of 18 years to raise a child — and that is excluding the cost of college.

18 Means Reaching the Age of Majority

In most states, 18 years old is considered the age of majority when your teen is considered an adult. If you are not pursuing guardianship, your teen needs to give permission for you as parents to participate in meetings and receive any communication about them.

For most individuals and small families, the answer to “Is $100,000 a good salary?” is a resounding “yes.” Cost of living and family size can affect how far $100,000 will go, but generally speaking, you can live comfortably on $100,000 a year.

Business Insider estimated the cost to care for one child in the US in 2024 will be at least $25,714. That's a 41.5% increase since 2016 and costs will likely continue to go up this year.

What is the biggest cost of raising a child in America? ›

The greatest expense associated with raising a child is housing. The cost of childcare varies widely and depends on where a family lives.

The company found that the average annual essential cost to raise a kid rose nearly 20% (19.3% nationally) between 2016 and 2021, the latest year for which complete data was available. According to the study, Families are projected to spend $237,482 over 18 years to raise a child.

Where does the money go? For a middle-income family, housing accounts for the largest share at 29% of total child-rearing costs. Food is second at 18%, and child care/education (for those with the expense) is third at 16%. Expenses vary depending on the age of the child.

Why is childcare expensive? Childcare in the UK is expensive partly due to the childcare ratio of one adult to a maximum of three under-twos. But the support available in the UK is also not as generous compared to other countries.

Average prices are £4,865 a week for a local authority place and £4,153 for a private placement, a review by the Personal Social Services Review Unit found. This is up from about £3,000 in 2016 and prices are rising week by week, councils say, as providers cite the cost of food, petrol and energy.

The amount you get is based on how much you earn. Depending on your earnings, in the 2021/22 tax year you could get either: £151.97 per week or 90% of your average weekly earnings (whichever is less) for up to 39 weeks. £27 per week for up to 14 weeks.

The high cost of childcare is partly due to the high ratio of staff to children that is required in UK childcare settings. But it is also higher than in many other countries because the government provides fewer subsidies.