Monday, January 7, 2013

The New Cost of Raising a Family

In 2011, the U.S. Department of Agriculture released a study stating the the average middle-income family will spend $226,920 raising a child born in 2010. That is a 60 percent increase from 2001.

The good news is that you don't have to put out $226K all at one time; that number is the cost to raise a child over the course of 18 years. However, that doesn't include the cost of sending your child to college. The Parenting website has a calculator that includes the costs of sending your child to college.

How much will is cost you to raise your family? Well, it is broken down by region, find out exactly what your estimate is here with this handy calculator. Or, if you aren't prepared for what may show up, don't  look at it.

Source: USDA

Ironically, having more children allows you to spend less. According to the report, families with more than three children spend 22 percent less than families with two children. Why? The ability to share bedrooms, toys, clothes and buying in bulk.

Just how do you prepare for raising a family? Careful planning and budgeting! What are your best budgeting tips?

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