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Raising child in the United States would be a costly affair now as a new government estimate shows that it could cost nearly a quarter of a million dollars and shockingly it does not include the cost of college.
According to newly released report of the US Department of Agriculture, it will cost a middle-income couple just over USD 245,000 to raise a child born in 2013 to the age of 18.
The recent figure is up USD 4,260 or almost 2 percent from the year before.
Various factors can widely influence these estimates like how much you earn and where you live.
According to the report, families with high-income and living in the urban Northeast are likely to spend nearly USD 455,000 to raise their child to the age of 18. On the other hand, low-income families living in rural areas are likely to spend much less, an estimated USD 145,500.
The government estimates are based on number of factors:
- Cost of housing
- Health care
- Child care
- Miscellaneous expenses, like cell phones and haircuts
But the estimates don’t include the study cost at college, which keeps on rising with the passing time.
However, all hopes are not shattered as the low inflation is keeping overall costs grown more slowly in recent years.
The median income of the country remains more than 8 percent below where it was before the 2008 financial recession but costs on child care and health continue to grow faster than inflation.
The increasing food costs and transportation are eating up a big share of family budgets. The AAA report shows gas prices have nearly doubled since 2004. The food prices, on the other hand, have rose over 13 percent since 2008, according to the USDA.