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did you have a baby? Growing up can cost more than you think.

Key Point

• It costs a middle-income couple to raise a child born in 2015 to age 17 at $310,605.
• From July 2021 to July 2022, the price increased by 8.5%. Household food prices rose 13.1%, petrol prices 44%, baby clothing 8.2% and boys’ and girls’ shoes 7.7%.
• Inflation is regressive and disproportionately affects low-income households. Single-person and minority households have been hit hardest.

High inflation has not only affected gas, food and rent, but also increased the cost of raising children. According to new data, it will cost a middle-income couple to raise her 2015-born child to her 17th birthday at $310,605 a year, or her $18,271.

In 2017, the U.S. Department of Agriculture estimated the cost of raising a child born in 2015 from infancy to adulthood at $233,610. The amount has increased by 33% over the past five years as inflation hit his 40-year high. These figures do not include the cost of saving for college.

Inflation hits all categories

Estimates include various expenses such as housing, food, clothing, medical expenses, and childcare expenses. It also takes into account childhood milestones and activities such as diapers, haircuts, sports equipment, and dance lessons. From July 2021 to July 2022, the price increased by 8.5% for him. Certain categories related to parenting are booming, as you can see below.

The cost of food, transportation, and living expenses skyrocketed. Inflation is particularly regressive and affects low-income households more. Single parents and minority households have been hit even harder. The cost also depends on where you live. Cost of living is highest along the coast and lowest in urban and rural Midwest.

The high cost of raising children is one reason American families have fewer children. The fertility rate is currently 1.782 live births per woman. It measures the number of births an average woman will have in her lifetime. It’s the lowest price in 30 years. The cost of having multiple children is higher, but the cost per child goes down with more children. Her two children live in one bedroom and can share items such as toys and clothes. Compared to families with her two children, couples have 27% more of her for only one child, and families with three or more children have her 24% less per child.

Having children is expensive and may continue to rise until inflation is brought under control. Setting a budget and creating a financial plan are even more important. With food prices up 13.1% for her, the family should be more creative with their spending on grocery shopping and extra-curricular activities. You can save more money by shopping at cheaper stores and cutting unnecessary expenses.