New parents should be warned that it could cost almost a quarter of a million dollars to raise a child—not including the cost of college. According to newly released estimates from the U.S Department of Agriculture, raising a child born in 2013 to the age of 18, it will cost a middle-income couple just over $245,000.
While childcare and health care costs are rising, the country’s median income remains where it was before the recession. Growing transportation and food costs also consume a large part of family budgets.
For families who are trying to cut costs, consider looking on local parenting blogs or websites to find everything from free baby clothes to a family looking to share a nanny. Make sure to take advantage of tax credits. Many employers offer tax-advantaged accounts that let parents pay for health and child care expenses with before-tax dollars. Moreover, make sure to plan ahead. Expectant parents should prepare for the added costs ahead of time and try to save each month.
