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How Much Does It Cost To Raise A Child? [With Budget Planning!]

The Department of Agriculture has released the data in 2015 that on an average the estimated cost is $233,610 to raise a child from birth through the age of 17. You add the inflation rate with it and you will get the estimated cost.

Also, the figure is for the middle-income class people and does not include the college expenses. So, if you are a married couple with 2 children, you will have to spend more or less $14,000 per year to raise a child.

Of course, this figure depends on so many other factors like your location of living, your income class, marital status, and so on. In this article, I will explain what will be the most expensive sources to raise a child and how to plan for the baby to keep a grip on your expenses.

Sources of Expenses

How Much Does It Cost To Raise A Child

You definitely don’t want to financially evaluate your baby. Because raising a baby is not like buying a car or a house. Even though it makes you uncomfortable, you should know the potential sources of expenses to raise a child.

This will help you to make a better budgetary plan. Here are the most noteworthy costs of rearing a child:

Housing Expense

This is the most expensive sectors and responsible for 29% of the child-rearing expense mentioned above. Housing expenses include mortgage or rent payment, taxes, repairs, and so on. For the baby, you will need a separate bedroom with a good quality crib.

The good news is, the more child you have the per head cost will be minimized. Why? Because of the shared bedroom, shared utility expenses etc.

Food Expense

This is another noteworthy expense sector. Believe it or not, your new child will cost you a lot of food expense because she will eat/drink completely different food than the adult. In the estimate of the total expense of raising a child, food expense contributed 18%.

But if you have more children, the per head food expense will be lowered. Because you can buy bulk volume in economical packages.

Child Care & Education

If you and your partner are working, then you need to pay for the daycare center. In an estimate, it is shown that you need to pay at least $180 per week for a child for the full-time daycare center. Yes, this expense also depends on where you live.

Medical Expense

For the first few years of your baby, you will go to the doctor a lot. This will increase your overall medical expenses.


It’s another source of expense and weighs heavily on a family’s budget. The cost will vary depending on the family income and location as well.

Kids Toys

You will be spending a lot on toys until your kids become 10 to 12 years old.  These costs a lot! Toys like indoor rail system, pushing cars, ride on cars, and so on.

Planning the Budget for the Baby

Consider the following factors while you make the budget for the baby:

  • Get a Grip on Budget: Consider how the expense pattern will change after the baby arrives. There will be added food costs, clothing, and childcare. To balance such costs, some parents start spending less on restaurants and entertainment.
  • Setting up HSA: If you have high-deductible health care plans, consider setting up a Health Savings Account (HSA) to meet unexpected health expenses. You have no idea how many times you have to visit the hospital for the newborn unexpectedly.
  • Plan for Fertility Treatment & Adoption: If both of you are working and becoming parents lately, there is a huge change you or your partner may need fertility treatment. Only one round of In Vitro Fertilization (IVF) will cost at least $15,000 and you or your partner may need it several times!
  • Plan for College Education: Save a fraction of your income for the college education of your baby. College expense is rising year after year and if you don’t have a budget for it, college education for your baby will be hard.


Yes, I understand nobody considers the baby as an expense, but it won’t hurt to learn the cost to raise the baby. It will help you to plan for the best for your baby and the family overall.

You simply can’t ignore the financial impact of rearing a child on your life. Rather, you plan ahead and make a plan for the baby’s bright future.