The Real Cost of Raising a Child

Having a child is one of the biggest life changes that you will ever go through. With all the joy and love that they add to your life, it can be easy to overlook the cost of raising a child. However, the cost to raise a child has significantly increased in recent years, which is enough to get some people thinking a little longer before having a little bundle of joy.

The average cost to raise a child for a two-parent, middle-income family can easily reach $245,340. For the first two years of a child’s life, parents spend $12,940 each year. From the ages of 6 to 8 years old parents spend $12,800 each year. While you may think that the teenage years may be less expensive since your child is old enough to have a job, it is the opposite. From the ages of 15 to 17, parents spend $14,970 each year.

Where does all that money go? It is mostly broken down into seven categories, which are:

  • 30 percent spent on housing
  • 16 percent spent on food
  • 14 percent spent on transportation
  • 6 percent spend on clothing
  • 8 percent spent on health care
  • 18 percent spent on child care and education
  • 8 percent spent on miscellaneous costs

This cost does not include the price of sending a child to college. The average annual cost of a public college is $18,390, while the average annual cost of a private college is $40,920.

Having the right insurance policies is the best way to protect your biggest investment, your children. For all of your homeowners, auto, life, umbrella, and health insurance coverage needs throughout Minnesota to ensure that you are and your children are protected, contact the insurance experts at Mayer Insurance in Apple Valley, Minnesota.