It Now Costs $300,000 to Raise a Child in the U.S.

Had a baby? The cost to raise one may be more than you realize.

High inflation hasn't just impacted the cost of gas, food, and rent, but it has also increased the cost to raise a child. According to new data, the cost for a married, middle-income couple to raise a child born in 2015 through age 17 is $310,605, or $18,271 a year.

In 2017, the U.S. Department of Agriculture estimated the cost to be $233,610 to raise a child born in 2015, from infancy to adulthood. That amount has increased by 33% in the last five years as inflation hits 40-year highs. These numbers don't include the cost to save for college, which would add even more. 

Inflation hits all categories

The estimate covers a range of expenses, including housing, food, clothing, healthcare, and child care. It also accounts for childhood milestones and activities -- diapers, haircuts, sports equipment, and dance lessons, among other costs. From July 2021 to July 2022, prices rose 8.5%. The specific categories with raising kids have surged, as seen below.

The cost for groceries, transportation, and living expenses has skyrocketed. Inflation is particularly regressive, meaning it impacts lower-income households more. Single parent and minority households have been hit even harder. The cost is also based on where you live. The most expensive places to live are along the coasts, with the least expensive areas located in the urban Midwest and rural areas. 

The high cost to raise a child is one of the reasons American families are having fewer children. The fertility rate is currently 1.782 births per woman, which measures the number of births the average woman will have during her lifetime. That's near 30-year lows. While the cost to have multiple children is high, the cost per child goes down the more kids you have. Two kids can live in one bedroom and share items like toys or clothes. Compared to a family with two kids, couples spend 27% more on an only child and families with three or more kids spend 24% less on each child. 

Having children is expensive, and until inflation is under control, it could continue to rise. Setting a budget and creating a financial plan is even more important. With food prices up 13.1%, families will have to be more creative in grocery shopping and spending on extracurricular activities. Shopping at cheaper stores and cutting down on unnecessary expenses will help your dollars go farther.