Here’s some news you won’t want to read if trying to start a family: the cost of raising a child has once again gone up. For children born in 2015, the cost of raising them up through high school is a staggering figure of over $300,000. Better start saving now, or hope you get that big promotion at work.
- Families will have to face costs of over $300,000 to raise a child from birth until 17
- Inflation has made the expected cost of raising a child rise in a new analysis
- The Brookings Institution worked with The Wall Street Journal to come up with the numbers
Fresh out of The Brookings Institution, in collaboration with The Wall Street Journal, the new analysis isn’t promising for young and future families. The price for raising a kid from birth to 17 years old is going to run families $310,605. Or, about $18,270 per year.
When compared to the last estimate, that’s roughly a 9% increase. Using data from the U.S. Department of Agriculture’s “Expenditures on Children by Families Report” the Brookings Institution added their own data to account for inflation.
There have been stories for more than a year of rising prices at the gas pump, at the grocery store, and pretty much everywhere else. American consumers have been hit by these prices, playing a role in the increase.
USDA’s prior data for raising a child born in 2015 was around $233,610. Those numbers accounted for 2% inflation, which would have been on par with projections. However, with the pandemic and more factors causing issues with distribution, logistics, and overall cost – things have gotten a little out of hand.
There is some good news for consumers, though. According to the Labor Department, the consumer price index slowed down. The 8.5% rate increase from July is down from the 9.1% increase in June. Consumers will have to do their best to find relief in their wallets. Still, there is a lot that goes into raising a child. Even past the age of 17.
Child Costs Doesn’t Include Life After 17
One thing that folks are going to notice, is that the numbers from Brookings only go up to 17. So, if you’re a family that sends your kids to college or perhaps has a child that lives at home a little later than usual – those numbers will only go up. It really is getting expensive to have a family and there isn’t a lot of reprieve in sight.
Just to make a point on how deep the inflation issue has gone, there are some big brands that have had to make decisions as well. Increasing costs, that is. Both Coca-Cola and McDonald’s announced hikes in their prices in recent weeks. Nothing is safe anymore.
So, from the soda and fast food you buy to other every day costs you go through for your little loved ones, and higher education – it’s all gone up. Hopefully, those prices come down eventually. But, it doesn’t feel like that will happen soon.