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Chapter 10

The Cost of Raising Children

While most often children are a
welcome addition to the family, they also
require great expenditures of time,
energy—and money. The cost of raising
children is high, as illustrated in Figure
10.6. Housing represents the largest
proportion of childrearing expenses (33–
37%).The second biggest expense is food
(15–20%).
Variations occur according to
household income level and the age of
the children. Younger children tend to be
less expensive than older children.
According to the USDA, the current cost
per year of raising a child varies from
$9,840 to $10,900 for a middle-income,
two-parent family with two children

(Lino, 2005). If we refer back to Figures

10.4 and 10.5, we will see childcare is the

second biggest expense (housing is the

biggest expense) for low- and middle-

income families. Particularly in the case

of those living at or below poverty level,

this leaves little for other necessary

expenses.

Families and Sound Finances

How do families achieve financial

balance? How can husbands and wives tell

if their financial decisions are sound? How

can families avoid the quagmire of too

much debt? We offer the following

suggestions to help you to manage your

financial resources wisely.

Figure 10.6

Children’s Weekly Time Expenditures

Age 3–5 $7,210 $2,650 $1,090 $800 $340 $500 $1,150 $680

Age 12–14 $8,070 $2,580 $1,770 $1,130 $710 $640 $290 $950

Income Total Housing Food portationTrans- Clothes Health Childcare/School Misc.

Up to $41,700

Age 3–5 $10,120 $3,600 $1,350 $1,200 $400 $660 $1,860 $1,050

Age 12–14 $10,640 $3,520 $2,050 $1,540 $830 $820 $570 $1,310

$41,700–$70,200

Age 3–5 $14,960 $5,730 $1,760 $1,690 $530 $760 $2,750 $1,740

Age 12–14 $15,270 $5,660 $2,580 $2,030 $1,040 $940 $1,010 $2,010

Over $70,200

Source:Hofferth and Sandberg 2001; Bianchi, Robinson and Milkie 2006.