A new report shows that owing to sky-high inflation rates, the average cost of raising a child is over $300,000. Here’s everything you need to know.
Cost of raising children in the US increases
A Brookings Institution report reveals, that the average cost of raising a child in the US has increased to over $3000,000. The research reveals the average amount needed for raising a child of a middle-income family, born in 2015. Till he or she is in high school, they will need a total of $310,605, which comes down to about $18,271 per year. As per SeekingAlpha, the median household income is estimated at $76,563 as of April 2022.
“A lot of people are going to think twice before they have either a first child or a subsequent child because everything is costing more. You also may feel like you have to work more,” stated Isabel Sawhill. Sawhill is a senior fellow at the Brookings Institute. The earlier figure estimated by the US Department of Agriculture in 2015 stands at $233,610. However, the report used the previous estimate as a baseline and paired it with the recent trends of inflation.
Inflation trends in the US
The US is facing its worst yet bout of inflation. The economy has acquired two successive quarters. This suggests the setting of a recession. While the inflation rate for July was 8.5 percent. However, this was due to the recent drop in gas prices. However, a compilation of the year-on-year numbers reveals a 40-year high. A recent Bloomberg survey supports the claim. It also reveals that there is a 40 percent possibility that the US will slip into a recession by 2023. The new estimate includes all necessities including food, housing, child care, clothing, diapers, healthcare, sports equipment, and haircuts. Additionally, it includes money spent on learning extracurriculars and celebrating various childhood milestones.