Average cost to raise a kid: $241,080 - KYTX CBS 19 Tyler Longview News Weather Sports

Average cost to raise a kid: $241,080

Posted: Updated:
How much will it cost to raise your child? Click on the image above to find out. How much will it cost to raise your child? Click on the image above to find out.

NEW YORK (CNNMoney) - From day care to the monthly grocery bill, the cost of raising a child is climbing at a rate that many families can't keep up with.

It will cost an estimated $241,080 for a middle-income couple to raise a child born last year for 18 years, according to a U.S. Department of Agriculture report released Wednesday. That's up almost 3% from 2011 and doesn't even include the cost of college.

At the same time, wages aren't keeping up. The country's median annual household income has fallen by more than $4,000 since 2000, after adjusting for inflation, and many of the jobs lost during the recent recession have been replaced with lower-wage positions.

The USDA's latest estimates include expenses for housing, food, transportation, clothing, health care, education and child care, as well as miscellaneous expenses, such as toys and computers.

The biggest price tag is for families in the urban Northeast earning $105,360 or more. They will spend $446,100, much more than the national average, according to the report. Meanwhile, families earning less than $61,590 a year in rural areas will spend the least, at $143,160.

While expenses in all categories rose in 2012, health care, education and child care spending increased the most.

Health care spending made up around $20,000, or around 8%, of the USDA's estimated child-rearing expenses for a child born in 2012. Meanwhile, child care and education expenses represented nearly 18% of the total costs for middle-income parents.

Since 2000, the cost of child care has increased twice as fast as the median income of families with children, according to the most recent report from Child Care Aware of America. In 2011, the average cost of full-time center-based care for an infant ranged from about $4,600 a year in Mississippi to more than $15,000 in Massachusetts.

"Many families are priced out of licensed child care services," said Lynette Fraga, executive director of the nonprofit group. "If they are priced out, then the health and safety of those children are at risk."

Amanda Holdsworth, who lives outside of Detroit with her husband and 22-month-old daughter, pay more than $1,000 a month for their daughter's day care center -- or nearly 15% of their monthly income. The costs are so high that they think twice about having a second child.

"To think about paying two day care rates, it's shocking," she said.

Another factor hurting families: rising transportation and food costs. Gas prices almost doubled between 2000 and 2012, even after adjusting for inflation, according to AAA. Meanwhile, food costs have spiked.

Turlock, Calif., resident Jason Hicks, a father of 10- and 13-year old sons, said his family has seen their monthly grocery bill grow from $500 to $800 in the past few years.

"As prices are going up and our kids are reaching teenage years, it's compounded quite quickly," he said.

There are ways to ease the cost burdens, said Stuart Ritter, a T. Rowe Price financial planner who teaches a money management class for new parents. Many employers, for example, offer tax-advantaged accounts that let parents pay for health and child care expenses with before-tax dollars.

"I have to reassure everybody there are other people who successfully have children," he said. "I personally have three. People figure out ways to make this work."

  • Local NewsMore>>

  • East Texas mother's bond set at $2 million dollars in daughter's death

    East Texas mother's bond set at $2 million dollars in daughter's death

    Tuesday, July 22 2014 1:30 PM EDT2014-07-22 17:30:22 GMT
    UPDATE: An East Texas mother's bond is now set at $2 million dollars. Stacie Marie Parsons was arraigned in the Henderson Co. jail this morning. She is charged with the capital murder of her 4 year old daughter.More >>
    UPDATE: An East Texas mother's bond is now set at $2 million dollars. Stacie Marie Parsons was arraigned in the Henderson Co. jail this morning. She is charged with the capital murder of her 4 year old daughter.More >>
  • ‘Operation Coyote’ targets human smuggling networks

    ‘Operation Coyote’ targets human smuggling networks

    Tuesday, July 22 2014 4:43 PM EDT2014-07-22 20:43:13 GMT
    photo: (ICE)photo: (ICE)
    WASHINGTON (KYTX) — In a news conference Tuesday, Secretary of Homeland Security Jeh Johnson, joined by U.S. Immigration and Customs Enforcement (ICE), U.S. Customs and Border Protection Border Patrol and U.S. Deputy Attorney General announced the progress of ongoing enforcement efforts by ICE Homeland Security Investigations (HSI) and the U.S. Department of Justice to target human smuggling networks in the Rio Grande Valley.More >>
    WASHINGTON (KYTX) — In a news conference Tuesday, Secretary of Homeland Security Jeh Johnson, joined by U.S. Immigration and Customs Enforcement (ICE), U.S. Customs and Border Protection Border Patrol and U.S. Deputy Attorney General announced the progress of ongoing enforcement efforts by ICE Homeland Security Investigations (HSI) and the U.S. Department of Justice to target human smuggling networks in the Rio Grande Valley.More >>
  • Yantis man indicted after admitting to having sex with 12-year-old girl on school playground

    Yantis man indicted after admitting to having sex with 12-year-old girl on school playground

    Tuesday, July 22 2014 4:05 PM EDT2014-07-22 20:05:14 GMT
    photo: Wood Co. Jailphoto: Wood Co. Jail
    QUITMAN (KYTX) – A Wood County Grand jury has indicted a Yantis man on child sex abuse charges.More >>
    QUITMAN (KYTX) – A Wood County Grand jury has indicted a Yantis man on child sex abuse charges.More >>
Powered by WorldNow

CBS19, MYTX & KCEB
2211 ESE Loop 323
Tyler, TX 75701
Phone (903) 581-2211
Fax (903) 581-5769

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KYTX. All Rights Reserved. Users of this site agree to the Terms of Service, Privacy Notice/Your California Privacy Rights, and Ad Choices.