Raising a child in this struggling economy is not an easy task. Being a parent, you would want to provide the best for your kids but with the recent downfall of the economy, you are left wondering how much does it cost to raise a child? Raising a child needs a lot of your time and attention. If you want to be good parents you would want them to grow with a good character, discipline, and respect. You would want to spend time with them and give them what they need and provide the basic necessities as they grow up.
Cost Of Raising A Child
The average cost of raising a child will differ depending on where you live, how much you earn, how much your spouse earn and how many you are in the family, These factors will greatly affect how much you get to spend for an entire household and for your kids starting from the day they were born up to the time they reach the age of 18 or adulthood. It is true that you want to give the best option for your child and that means additional cost but we will talk about the most basic cost that you would need to pay if you do decide to raise and start your own family.
We will start first with a new couple who wants to start their family and raise a child. If you want to raise 1 child and both of you are working in the family then you would need to spare around $12,307 a year for the cost of raising this child. The amount includes the housing expenses which will reach $4,013, food allowance worth $1,664, the transportation cost of $1,524, clothing allowance worth $851, health care and education are around $2,642 and other expenses around $572.
Note that the cost of raising a child will have a different cost depending on where you live. If you are living in the Northeast Urban or suburban area; Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont, and your income is less than $59,200 then the cost will amount to $12,078. But if you are living on the south side including Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia then your cost of raising a child will only be $10,097.
Now, if there is only one person supporting the family, then the average cost of raising a child will differ depending on the income. If your annual Before-Tax Household Income is less than $59,200 and you are raising 1 child then your annual cost to raise a child is $11,453. There is a difference of around $1,000 and this is because of your transportation, clothing allowance factors in the difference of cost. The miscellaneous items include cost for entertainment, reading materials, as well as personal care items.
As your child grows up they will have needs unlike when they were toddlers. If you are asking how much does it cost to raise a child when they are starting to go school then there will additional cost factoring to raising them. You would have to pay an extra cost for their childcare, enrolling them at playschool if both of the parents are working. Depending on the school, an average cost for this type of facilities will range from $372 to $1,100 monthly.
Cost Of Raising A Teenager
As your child grows, they will have other needs especially when they are teenagers. School demands the use of technology and communication is a great factor in the cost of expenses. They would need to attend several functions which will be quite heavy on your budget and their health care is higher compared to when they were younger.
The average cost of raising a child when they reach the age of 17 will be $15,392. This is true for a family living in the Northeast with an Annual Before-Tax Household Income of less than $59,200. The housing expenses which includes shelter, utilities house furnishing and equipment will cost $4,788 while the food allowance will cost you $3,010. The transportation allowance has increased to $2,134 which factors in the cost of gas, maintenance, repair, and insurance.
It is much cheaper raising a teenager down at the Southside because the yearly cost of raising them will only amount to $12,840, same goes for those living in the Midwest area but if you are in the west urban or suburban area, you need to add a thousand dollars for the cost.
If you are a single parent raising your 17-year-old child then you would have to be ready with the amount of $13,280 a year to raise them. The housing expense still becomes the highest amount you have to consider in this situation amounting to $4,234 while the child care and education will cost $2,255 and their clothing allowance will be around $580.
Cost Of Raising 2 Children
What if you both have a child less than 1-year-old and a teenager in the same household? How much does it cost to raise a child? If you have both children with these ages and both of the parents are there but having an Annual Before-Tax Household Income of less than $59,200 then the cost of raising both children will cost you $19,670 a year. The cost of raising the younger child will be will $9,690 while the teenager will cost you $9,980.
If you are a single parent raising 2 children with an Annual Before-Tax Household Income of less than $59,200 then the cost of raising both children does not really go far from having both parents around as the cost will be around $19,208. Raising a 17-year-old will cost you $10,118 while the baby will cost $9,090.
Raising 1 kid is hard enough and having two will be a challenge on your finances especially when there is only one person making the income. That is why many household opts to have both parents working so that they can provide the best for their kids. As you raise your kids, you need to teach them the value of money so that they will understand how to manage finances at a young age. This way they will understand why you are being frugal and why you are budgeting the household income. Teach them how to save up and earn their way to getting what they want. Teach them the value of waiting as well as the importance of making choices. Teaching them at a young age will make a great foundation as they grow up.
This way they will understand why you are being frugal and why you are budgeting the household income. Teach them how to save up and earn their way to getting what they want. Teach them the value of waiting as well as the importance of making choices. Teaching them at a young age will make a great foundation as they grow up.
As parents, it is your responsibility to provide for your child. It can be the father, the mother or even both but what is important that you both know how to manage your finances especially when the future of your kid depends on it. Do not make big and risky decisions without thinking about it for a thousand times. You should remember that the decision you are going to make will not only affect you but the whole household as well. So think many times because raising a kid takes a lot of responsibility and financial skills.