Q: My daughter just got married and is considering when to have children based on her financial situation. Can you tell me how much it typically costs to raise a child in the U.S. today?

A: Estimates suggest that raising a child can cost over $310,000, but this can vary widely from family to family. What’s certain is that parenting is not cheap.

The U.S. Department of Agriculture has been publishing annual reports for years that outline the average cost of raising a child to adulthood, serving as a standard reference for estimating childcare expenses. However, the last update was in 2017, and it doesn’t include college costs.

According to the latest report, the total cost of raising a child born in 2015 is estimated to be $233,610, based on a two-parent household with a median income. Adjusted for inflation, figures from the U.S. Bureau of Labor Statistics indicate that this number has surged to around $312,202 as of March this year.

The actual costs could be even higher.

Isabel V. Sawhill, a senior fellow at the Brookings Institution, points out that the inflation rate used by the Agriculture Department is based on 2.2%, which is significantly lower than current figures. When she factored in an average inflation rate of around 4% since the late 1970s, the cost for middle-class families raising a child from birth to age 18 would be approximately $310,605. In contrast, the Agriculture Department’s estimate stands at $290,014, both of which exclude college expenses.

Shannon LaRosse, a financial advisor from Informed Family Financial Services and a mother of two, believes these estimates are quite accurate.

● Breakdown of Child-Rearing Costs

The Agriculture Department’s Consumer Expenditure Survey shows that the cost of raising a child varies by region, with the Northeast being the most expensive area in the country.

For a child born in 2015, the department’s data indicates spending breakdowns of approximately 29% on housing, 18% on food, 16% on childcare and education, 15% on transportation, 9% on healthcare, 7% on miscellaneous items, and 6% on clothing.

These percentages may have shifted in recent years.

A Care.com survey found that in 2023, parents are spending an average of 24% of their household income on childcare. The average cost for one child at a family care center is about $219 per week, while hiring a private nanny costs an average of $755 per week. Nearly half of the surveyed parents reported spending more than $1,500 monthly on childcare, totaling $18,000 a year.

Some daycare centers have extensive waiting lists. According to Care.com, 65% of respondents reported waiting for a spot at daycare centers, with 43% saying they had to wait at least four months for availability.

In an effort to cut costs, many parents seek free childcare, with over a third relying on family and friends for help. About 30% of those surveyed said having employer-sponsored childcare would be extremely beneficial.

Many parents find themselves adjusting their work schedules to reduce childcare costs, often opting for jobs that may pay less but offer flexibility and additional benefits.

Care.com also discovered that over 90% of parents want the issue of daycare to be addressed in the 2024 presidential candidate debates.

● Factors Affecting Parenting Costs

The real costs of parenting can differ greatly among families. Many parents have strategies to significantly reduce their expenses, and those keen on controlling costs are likely to scrutinize their spending closely.

If grandparents live nearby and are willing to provide childcare for free, that can save a substantial amount on daycare costs. For those in low-cost living areas, such as Alabama or Wisconsin, housing expenses may be lower, indirectly decreasing overall parenting costs.

However, living in low-cost states can have its own trade-offs, like the need to buy seasonal clothing, which can raise overall expenses.

As children grow each year, costs for school activities, sports teams, and electronic devices may increase. Some parents may consider having their teenagers work to cover their discretionary expenses, such as transportation.

For parents leaning towards a more hands-off approach to financing, financial experts like Trent encourage them to consider whether they are adequately preparing their children to manage their finances in the future.

While having multiple children increases costs, it might not be as high as expected. Parents who already have ample housing and vehicles may find that daycare centers offer sibling discounts, and items like clothes and toys can be reused or bought in bulk to save money.

Experts suggest that when estimating the cost of raising children, it’s best not to rely solely on average figures from media or online discussions. Speaking directly with parents who currently have children can provide the most valuable insights.

Parents can make the most of existing resources to lower childcare costs, opting not to purchase expensive items or upgrade their homes, but rather considering second-hand goods, utilizing grocery store savings apps, re-evaluating costly family vacations, and limiting extracurricular activities.

According to the Bipartisan Policy Center, nearly every country offers some form of paid parental leave, and the United States is one of the few that does not. UNICEF reports that countries like Belgium and Norway offer free childcare services, while other wealthy nations provide substantial subsidies.