Cost Of Raising a Kid
For a middle-income family to raise a child born in 2015 through the age of 17, the cost of rearing a child has hit $233,610, according to the report.
The price jump is a 3% increase from the previous year, according to the report, with housing taking up a bulk of the expense at 29% of the cost. Food took the second biggest expense at 18%, according to the report.
The report, which tracks seven categories of family spending, including housing, transportation and clothing, helps court systems and government agencies determine the costs of child-support. The report does not track payments for college or financial contributions from non-parental sources, including government aid, Bloomberg reported.
The increase this year falls below the historic average annual increase of 4.3%, according to Bloomberg. Transportation expenses, driving in particular, have fallen due to lower projected energy costs. Among upper-income families, costs for childcare and education have increased.
The report classifies middle-class families as having a before-tax income of $59,200 to $107,000. Families with lower incomes are expected to spend $174,690, while families with higher incomes will likely spend $372,210.