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The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: Oscar Wong/Getty Images August 04, 2022 June Sham is an insurance writer for Bankrate. Before joining the team, she worked for nearly three years as a licensed producer writing auto, property, umbrella and earthquake policies. Maggie Kempken is an insurance editor for Bankrate. She helps manage the creation of insurance content that meets the highest quality standards for accuracy and clarity to help Bankrate readers navigate complex information about home, auto and life insurance. She also focuses on ensuring that Bankrate’s insurance content represents and adheres to the Bankrate brand. Bankrate logo The Bankrate promise
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation of how we make money. Our content is backed by LLC, a licensed entity (NPN: 19966249). For more information, please see our Insurance Disclosure. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — so you can feel confident about which provider is right for you. We guide you throughout your search and help you understand your coverage options. We provide up-to-date, reliable market information to help you make confident decisions. We reduce industry jargon so you get the clearest form of information possible. All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we’re putting accuracy first. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Bankrate logo Insurance Disclosure
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. How much does it cost to have a baby and raise them? A 2015 study done by the found that it cost an estimated $233,610 to raise two children from birth to age 17 in a middle-income family with two parents. That figure, , is just over a quarter of a million dollars at $286,000 in 2022. Shouldering the cost of raising children can be an additional pressure on parents, especially as costs continue to rise. Here’s what you need to know. How much does it cost to have a baby
Having a child is an undeniably major life change. Women and families today may be more anxious to understand how life and their financial situation might change with a baby, whether anticipated or unplanned. Here are just some of the expected costs related to having and raising a baby: Insurance Life The average cost of powdered formula is around $400-$800 per month for babies who are exclusively fed on formula. This cost could be different depending on your situation, such as if your baby needs special formula, if there is a or if your baby is also fed breast milk. () A study by the Kaiser Family Foundation found that the total costs associated with being pregnant, experiencing childbirth and postpartum care averaged $18,865. () That same study found that average vaginal deliveries cost $14,768, with $2,655 paid out of pocket, while the average cesarean section cost $26,280, with $3,214 paid out of pocket.(Kaiser Family Foundation) A home birth could cost between $1,500 to $5,000, but typically isn’t covered by health insurance. () Adoption and in vitro fertilization (IVF) costs can also vary. One cycle of IVF could range between $4,900 to $30,000 depending how the procedure is performed, while private adoption fees could be between $20,000 to $45,000. (Healthline) The annual cost of childcare for infants to four years old averages about $10,000 per child for center-based care and $8,000 for home-based care. () A survey from CNBC found that the weekly cost of a nanny for a single child in 2021 was $694, up from $565 in 2019. An after school sitter in 2021 was $261, slightly higher than the 2019 figure of $243. () That same study found that parents reported spending more than 20% of their household income on childcare, although 72% reported spending 10% or more. (CNBC) With babies going through 6-12 diapers per day, this could mean up to $936 per year, or $18 a week, spent on disposable diapers. (Healthline) Getting all the necessary gear for a baby, like strollers, car seats, play pens and carriers, can cost anywhere from $425 to nearly $3,000. () How much do school expenses cost
A major expense when it comes to raising children is the cost of education. Starting with , the average cost per year of tuition can range from $4,460 to $13,158 per year, or about $372-$1,100 per month. When it comes to kindergarten through high school, parents can choose between public and private schools. For private schools, the Education Data Initiative estimated that tuition costs an average of $12,350 per year. Associated costs, like technology, textbooks, back-to-school supplies and more, could bring that up to $16,050. For a child to be in private school from kindergarten through eighth grade, the estimated cost could be around $208,650. Public schools don’t charge a tuition fee like private schools, but that doesn’t mean there aren’t costs as well. In 2016, the estimated that it cost $302 per student to play sports, $218 for arts like music, theater or yearbook, and $124 for other clubs. These figures included costs like participation fees, equipment and travel, and may have been increased since due to inflation. Paying for college
Currently, the for a public university ranges from $10,740 for in-state students and $27,560 for out-of-state students. Parents who choose to pay for college can take advantage of savings plans like the . Starting early in your kids’ lives allows you to leverage time to build up savings for your child’s post-high school education. The school that your child attends matters, too. While they may receive a lower tuition for attending an in-state public school, they may want to go out-of-state as well. Below are the most expensive and cheapest states for out-of-state students attending a 4-year public university: Insurance Life Five cheapest states for out-of-state students attending a 4-year public university Florida: $4,463 per year Wyoming: $4,747 per year District of Columbia: $6,020 per year Nevada: $6,023 per year Utah: $6,700 per year Insurance Life Five most expensive states for out-of-state students attending a 4-year public university New Jersey: $14,360 per year Illinois: $14,455 per year Pennsylvania: $15,565 per year New Hampshire: $16,679 per year Vermont: $17,083 per year Other costs of raising a child
Though housing, food and child care are the highest cost categories related to raising a child to age 18, they are not the only expenses to consider. Other necessities like clothing, education and health care can be expensive. All of these categories should also be considered when factoring in the costs of having and raising a child. As your child gets older and , for instance, this could be a significant expense — Bankrate’s research found that adding your 16-year-old to your car insurance policy although there are some relatively . Housing
Housing is arguably the most significant expense associated with raising a child. In the USDA report, housing costs make up 29% of the overall cost of raising a baby. The cost of housing and the type of housing you choose. Many parents dream of a suburban house with a white picket fence and enough bedrooms for the entire family. Based on a $250K dwelling coverage amount, the is $1,383 per year, according to 2021 Quadrant Information Services data. This is just one factor in the cost of owning a home; you will also have to consider the cost of a mortgage, utilities and maintenance. Food
The cost of food is the second-largest expense, at 18% of the overall cost of raising a child. Over time, , with food-at-home pricing increasing 12.1% and food-away-from-home pricing increasing by 7.7% from June 2021 to July 2022. The USDA expects rising costs for 2022, with increases as high as 10.0% and 7.5%, respectively. To eat healthy foods, like high-quality meats and fresh fruits and vegetables, food expenses increase even more. In 2022, the costs for all food categories are expected to increase: Meats: +9.0%-10.0% Processed fruits and vegetables: +8.5%-9.5% Cereals and bakery products:0%-13.0% Life insurance
Life insurance is crucial for families, especially if your income cannot be easily replaced if the unexpected were to happen. Funeral costs, living and education expenses and more can quickly add up even for those who budget carefully. Because of this, it’s also important to have a plan in the event that you or your partner are no longer able to financially support your children. Some parents rely on life insurance to ensure that, if they were to pass away, their family would be able to maintain their lifestyle and have some financial cushion for the future. Both parents should consider purchasing adequate life insurance to replace their salary, even for a stay-at-home parent. A recent survey completed by Salary.com estimates the at $184,820 per year. In addition, life insurance is typically the least expensive when you are young and healthy, especially if you choose . The bottom line
Raising children is rewarding and fulfilling to many people. But it’s also very expensive these days. Infancy to age 18 is likely to cost you close to a quarter of a million dollars or more as a parent. But by preparing mentally and implementing financial planning strategies, you can be well-equipped to raise your child to adulthood comfortably, even on a budget. Given the ever-growing costs of raising a child, parents thinking of having a baby might want to consider some of the following tips: start early with a budget, try to live below your means, save money wherever possible, shop around for home and auto insurance each year for the best deal and purchase life insurance when you are young and healthy. SHARE: June Sham is an insurance writer for Bankrate. Before joining the team, she worked for nearly three years as a licensed producer writing auto, property, umbrella and earthquake policies. Maggie Kempken is an insurance editor for Bankrate. She helps manage the creation of insurance content that meets the highest quality standards for accuracy and clarity to help Bankrate readers navigate complex information about home, auto and life insurance. She also focuses on ensuring that Bankrate’s insurance content represents and adheres to the Bankrate brand. Related Articles