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How Much It Costs to Raise a Child to the Age of 17

For 2012 the USDA (United States Department of Agriculture) estimated that middle income parents of a child born in 2012 can expect to spend about $234,900 (or $13,800 per year) for food, shelter, and other necessities to raise a child over the next 17 years. That's a 23 percent increase from 1960. The study also revealed:

  • Kids get more expensive as they get older. Teenagers cost about $1,270 more per year. (A toy car for a 4-year-old is cheaper than car insurance for your 16-year-old.)
  • Additional housing costs (extra bedrooms and bathrooms) account for the largest expense.
  • Children are subject to "economies of scale," also called the "cheaper by the dozen" factor. In other words, expenses per child decrease as a family has more children.

One report noted that for the same price of $234,900 you could either raise a child or purchase a brand-new Ferrari 458 Italia.

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