According to a new report from the U.S. Department of Agriculture, raising a child born in 2013 will cost parents close to a quarter million bucks. $245,340 to be exact. (Over $300,000 if adjusted for anticipated inflation.)
And, thank God we have the federal government to explain it all to you. I mean, my guess is that most millennials starting their careers, falling in love, and thinking of starting a family (they still do these things in that order, don't they?) have absolutely no idea that bringing children into the world might affect their spending money and future financial planning.
Fear not youngsters, Uncle Sam is here with well-financed research to explain it all for you.
The report details the regions that tend to cost more for child-rearing as well as the areas of the country that cost less. Not surprisingly, rural areas and Southern urban centers are most affordable while the Northeast will cost parents the most money.
The disparities due to region are mostly due to housing expenses. Center for Nutrition Policy and Promotion (CNPP) economist Mark Lino, Ph.D. explains, "The average cost of housing for a child up to age 18 is $87,840 for a middle-income family in the urban West, compared to $66,240 in the urban South, and $70,200 in the urban Midwest. It's interesting to note that other studies are showing that families are increasingly moving to these areas of the country with lower housing cost."
Apparently, it's cheaper to own a house in a rural location and, get this, more expensive to live in a big Eastern city like New York or Washington! Thanks, Secretary Tom Vilsack, we had no idea.
Another factor contributing to the cost of raising children is, apparently, food. That's right, millennials, before you start all that procreating, you better figure out that you'll be sharing that ramen and Velveeta with the munchkins.
"Food is among the top three expenses in raising children," said CNPP executive director Angela Tagtow. "Parents have the challenge of providing food that is not only healthful and delicious, but also affordable."
But fear not, the federal government has resources at your disposal to help you wade through the insurmountable challenge of feeding the kids you bring into the world. "We have great resources such as ChooseMyPlate.gov that features tips to help families serve nutritious and affordable meals, Tagtow exclaimed. "I encourage parents to check out our Healthy Eating On a Budget resources, 10-Tips Nutrition Series, recipes, and MyPlate Kids' Place, which features digital games for kids to get engaged themselves in healthy eating."
One other observation from the USDA that might be music to the ears of Mormons, Catholics, and Orthodox Jews everywhere. Apparently, the more kids you have, the cheaper it is to raise them. So you'll actually end up saving money if you have more kids. Or ... something ...
Expenses per child decrease as a family has more children. Families with three or more children spend 22 percent less per child than families with two children. As families have more children, the children can share bedrooms, clothing and toys can be handed down to younger children, food can be purchased in larger and more economical quantities, and private schools or child care centers may offer sibling discounts.
One aspect of the cost of raising children that somehow failed to find its way into the report is taxes. Yeah, federal income tax isn't mentioned in the report or even the fancy infographic:
In fact, the only mention of taxes in the full report is the property tax, which is wrapped up in the housing expense line item. The feds apparently believe that income tax is not an expense, which makes perfect sense when you consider their perspective. You see, it's not your money, it's their money. They just give you some allocation of it after they take their share.
But never mind about that. Ignorance is bliss my young friends. Go out there, be fruitful, and multiply! Just know that your federal government is here to give you a heads-up on how much it's gonna cost you to raise the next generation. Because we're sure you never even considered that, did you?