It Costs HOW Much To Raise A Child?

Raising a Family

The Pivot Life Insurance Toolbox provides you with several methods to calculate how much life insurance coverage you need. If you have children, you will be interested in the U.S. Department of Agriculture (USDA) report released in its Annual Report in August 2014 with projected spending to raise a child born in 2013. This will be helpful when calculating your needs of life insurance to determine what does it cost to raise a child.

The report shows that a middle-income family with a child born in 2013 can expect to spend about $245,340 ($304,480 adjusted for projected inflation) for food, housing, childcare and education, and other child-rearing expenses up to age 18. Costs associated with pregnancy or expenses occurred after age 18, such as higher education, are not included. That’s a quarter of a million dollars excluding college costs!!!!

The report, issued annually, is based on data from the federal government's Consumer Expenditure Survey (, the most comprehensive source of information available on household expenditures. For the year 2013, annual child-rearing expenses per child for a middle-income, two-parent family ranged from $12,800 to $14,970, depending on the age of the child.

According to the US Department of Education, the average annual cost of public university increased 6.5% each year over the last decade. That means that by 2030, annual tuition will be $44,047. The total cost for a four-year degree will be more than $205,000.

Expenses per child decrease as a family has more children. Families with three or more children spend 22% 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.

I believe these cost estimations are important in helping you determine your life insurance needs when trying to estimate how much it costs to raise a child today. 

About the author:  Ken Buccico holds a LUTC designation and has been in the life insurance business for 39 years. His wealth of experience empowers clients to make best possible decision regarding a life insurance policy. To explore the best life insurance option, contact Ken at 1-800-651-1953 or