Gorham, Liz

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DigitalCommons@USU

A weekly question/answer column What Is The Cost Of Raising A ChildToday?Liz Gorham* answers:Part 1Any parent will say, “It takes a lot more than you think!” According to estimates from theU.S. Department of Agriculture, based on expenditures for housing, food, transportation,clothing, health care, child care and education, and miscellaneous expenses: • A middle-income family living in an urban setting in the West might spend an estimated$165,630 to raise a child from birth to age 18. • A higher income (more than $59,300) family in the urban West could spend as much as$233,190 by the time the child is 18. • Depending on the age of the child and the family income, husband-wife families in theurban West spend from $6,420 to $13,800 per year on their child. The figures are based on the latest research available (i.e. the1990-92 ConsumerExpenditure Survey updated to 1997 dollars using the Consumer Price Index). The USDAestimates do not predict exactly what a particular family will spend, but do indicate trends.Excluded from these estimates are college costs and other parental expenses on childrenafter age 17; also, any expenditures made by non-household members. Indirect costs involved inchild rearing by parents such as time costs, foregone earnings and career opportunities, are alsonot included. Access the 1997 report of “Expenditures on Children by Families” on the web at:http://www.fns.usda.gov/fncs/. To use the charts (found at the end of the report) specify yourgeographical area, single or two-parent household, income level, and age of child/children. Formore information, contact your local USU Extension county agent. Next week, tips on meeting the costs of raising a child.  * Liz Gorham is Utah State University Extension Family Resource Management Specialist

What Is The Cost Of Raising A Child Today? Part 1

A weekly question/answer column What Is The Cost Of Raising A ChildToday?Liz Gorham* answers:Part 2U.S. Department of Agriculture estimates on costs of raising a child do not predictexactly what a particular family will spend but indicate trends. • Urban families in the West spend more on their children than families in other parts ofthe U.S. (urban midwest and rural areas have the lowest child-rearing expenses). • Households with one child spend an average of 24% more on the single child, and thosewith three or more children spend an average of 23% less on each child. • The older children are, the more they cost. • The more income parents have, the more they spend on their children. • The lower the income of a family, the larger the percentage of income spent on children. • Single parent households generally have lower incomes, but for the younger child in atwo-child household, child-rearing expense patterns are much the same for single andtwo-parent families. • For families with children, the trends in spending demonstrate the importance of financialplanning and budgeting. We know that the expense of raising a child grows as the childgets older. • Parents must be on the alert for ways to save money by practicing good consumer skills.In addition, they may consider upgrading their skills to improve their earning power. • Parents should consciously set financial priorities, plan their spending in advance ofpurchase and review the adequacy of their life and disability insurance. These are but afew of the financial management skills to be sharpened through the “Money 2000Program” sponsored by Utah State University Extension. For assistance in setting up aplan for savings and/or debt reduction, contact your local USU Extension county agent toenroll in the “Money 2000 Program.” Access the 1997 report of “Expenditures on Children by Families” on the web at:http://www.fns.usda.gov/fncs. For more information, contact your local USU Extension countyagent.  * Liz Gorham is Utah State University Extension Family Resource Management Specialist

What Is The Cost Of Raising A Child Today? Part 2

https://digitalcommons.usu.edu/cgi/viewcontent.cgi?article=1265&amp;context=extension_histall

What Is The Cost Of Raising A Child Today? Part 2

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