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The National Average Cost to raise a child: $226,920

The U.S. Department of Agriculture has recently issued their annual report (“Cost of Raising a Child, 2011”). This report has calculated the costs of raising children in regards to the average family budget. The data was acquired from 11,800 husband-wife households, and 3,350 single-parent households. The survey accounts for children from birth through age 17, and it does not include college costs. It concluded that child-related spending typically varies by household income level, type of household, and the age of the child. My concern, of course, is the data regarding child care expenses. I also found that along with the actual report, John Wihbey with Money Matters, June 9, 2011, and MSN Money partner, Oct 11, 2011 were two beneficial resourses.
For a middle-income, two-parent family with two kids in 2010, the report findings include:
• Since 1960, child-rearing expenditures (for a middle-income, husband-wife family) have climbed 22%
• Spending for children in 1960 on average was 2% for child care and education (not college), 11% for clothing, and 24% for food
• In 2010, child-related spending by parents saw 17% of the budget go to child care and education (not college), but only 6% for clothing and 16% for food – this is because both parents now work
Much of the regional difference in expenses, on a child, was related to housing costs, child care and education (not college) expenses. Child care and education (not college) expenses were highest for families in the urban Northeast. And the survey found that child-rearing expenses are highest in the urban Northeast regions of the country, followed by the urban West and urban Midwest. Child-rearing expenses were lowest in the urban South and rural areas. In each region, expenses on a child increased with household income level, and with the age of the child.

Radford Kids’ College provides the educational (AZ certified teachers) aspect in a child care / preschool, in-home atmosphere. And because food can be 16% and 12% (depending on income level) of the family budget, we also provide healthy, home cooked meals for the children in our care – according to the ADHS guidelines and regulations. Live music, with rhythm instruments, is another benefit that our program offers (speaking and comprehension development). Structured arts, crafts, cultural awareness emphasis, and physical activity development (outdoors and indoors). Our children do not have access to a television, but we do reinforce lessons with educational computer/videos – much less than one hour per day. Overall, we offer a high quality day care opportunity with competitive rates.
USDA
Housing $10,450
Food $3,200
Transportation $3,263
Clothing $1,238
Health care $1,238
Child care & education $4,450 — figure based on the national average (some people do not use child care in these figures). Also after 5 years of age, children are in school, not child care.
Other $2,625
Total $26,463

• For husband-wife households with two children earning less than $57,600 in pre-tax income, annual expenses for a child ranged from $8,480 to $9,630, depending on the child’s age; for households with income between $57,600 and $99,730, expenses ranged from $11,880 to $13,830; and for households making more than $99,730, the figure was $19,770 to $23,690
• Households in the lowest income group spent on average 25% of their income on child-related costs; households in the middle-income group spent 16%; and those in the highest group only 12%
• For a household in the middle income range with three children ages 12, 13 and 16, the average annual cost of raising them is $31,600. For a single parent in the low-income range, the average annual expenditure for three such children would be $20,470
• In the urban Northeast, an upper-income, husband-wife household would spend nearly $27,000 on a child age 15 to 17; a lower-income husband-wife household in the urban Midwest would spend $9,660 spent a child of the same age
• Housing costs accounted for the biggest share of budgets for child-rearing, accounting for between 31% and 33% of spending on average
• Food costs constituted 18% of spending for families in the lowest income group, the second largest part of their budget. Food was the third-largest expense for families in the middle- and high-income groups, totaling 16% and 12% of the family budget
Radford Kids’ College provides the educational (AZ certified teachers) aspect in a child care / preschool, in-home atmosphere. And because food can be 16% and 12% (depending on income level) of the family budget, we also provide healthy, home cooked meals for the children in our care – according to the ADHS guidelines and regulations. Live music, with rhythm instruments, is another benefit that our program offers (speaking and comprehension development). Structured arts, crafts, cultural awareness emphasis, and physical activity development (outdoors and indoors). Our children do not have access to a television, but we do reinforce lessons with educational computer/videos – much less than one hour per day. Overall, we offer a high quality day care opportunity with competitive rates.

About the Author
Debbie Radford, M. Ed. is the certified home care provider of Radford Kids’ College Child Care / Preschool in Tempe, AZ. She is a certified teacher with public school teaching experience. Debbie has also taught in both center and in-home child care and preschool facilities. She can be reached at her e-mail address: radfordkidscollege@yahoo.com

City of Tempe permitted & approved, AZDHS certified, DES contracted & background checked, Dept. of Homeland Security
E-verified, Association for Supportive Child Care Food Program, Current fingerprints, CPR, Child & Infant First Aid, Summa Associates Close to Home, Intel Preferred Provider, current AZ Certified Teaching Credentials

 

3 Responses to “The National Average Cost to raise a child: $226,920”

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