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Expenditures on children by families, 2000
Mark LinoSince 1960 the U.S. Department of Agriculture (USDA) has provided estimates of expenditures on children from birth through age 17. These estimates are used in setting child support guidelines and foster care payments and in developing educational programs on parenthood. This study presents the latest child-rearing expense estimates, which are based on 1990-92 expenditure data that have been updated to 2000 dollars. The study presents these new estimates for husband-wife and single-parent families. It briefly describes the data and methods used in calculating child-rearing expenses (1) and then discusses the estimated expenses.
The estimates are provided for the overall United States. The child-rearing expense estimates for husband-wife families are also provided for urban areas in four regions (Northeast, South, Midwest, and West) and rural areas throughout the United States (2) to adjust partially for price differentials and varying patterns of expenditures. For single-parent families, estimates are provided for the overall United States only because of limitations in the sample size. Expenditures on children are estimated for the major budgetary components: housing, food, transportation, clothing, health care, child care and education, and miscellaneous goods and services. The box on p. 26 describes each expenditure component.
Data
The 1990-92 Consumer Expenditure Survey (CE) is used to estimate expenditures on children. Administered by the Bureau of Labor Statistics (BLS), the CE collects information on sociodemographic characteristics, income, and expenditures of households. The CE, conducted annually since 1980, interviews about 5,000 households each quarter over a 1-year period. Each quarter is deemed an independent sample by BLS; thus, the total number of households in the 1990-92 survey is about 60,000.
Husband-wife and single-parent families were selected from these households for this study if (1) they had at least one child of their own--age 17 or under--in the household, (2) they had six or fewer children, (3) they had no other related or unrelated people present in the household except their own children, and (4) they were complete income reporters. (3) Quarterly expenditures were annualized.
The sample consisted of 12,850 husband-wife households and 3,395 single-parent households. BLS weighting methods were used to weight the sample to reflect the U.S. population of interest. Although based on 1990-92 data, the expense estimates were updated to 2000 dollars by using the Consumer Price Index (CPI-U). (Expenditure and income data for 1990 and 1991 were first converted to 1992 dollars; then, all 3 years of data were updated to 2000 dollars.)
Methods
The CE collects overall household expenditure data for some budgetary components (housing, food, transportation, health care, and miscellaneous goods and services) and child-specific expenditure data for other components (clothing, child care, and education). Multivariate analysis was used to estimate household and child-specific expenditures. Income level, family size, and age of the younger child were controlled so that estimates could be made for families with these varying characteristics. Regional estimates were derived by controlling for region. The three income groups of husband-wife households were determined by dividing the sample for the overall United States into equal thirds: before-tax income under $31,000, between $31,000 and $52,160, and over $52,160 in 1992 dollars.
For each income level, the estimates were for husband-wife families with two children. The younger child was in one of six age categories: 0-2, 3-5, 6-8, 9-11, 12-14, and 15-17. Households with four members (two children) were selected as the standard because in 1990-92 this was the average household size of two-parent families. The focus was on the younger child in a household because the older child was sometimes over age 17.
The estimates are based on CE interviews of households with and without specific expenses; so for some families, expenditures may be higher or lower than the mean estimates, depending on whether they incur the expense. This applies particularly to child care and education for which about 50 percent of families in the study had no expenditure. Also, the estimates cover out-of-pocket expenditures on children made by the parents only and not by others, such as grandparents or friends. For example, the value of clothing gifts to children from grandparents would not be included in clothing expenses.
Regional income categories were based on the national income categories in 1992 dollars that were updated to 2000 dollars by using regional CPI' s. The regional income categories were not divided into equal thirds for each region as was done for the overall United States.
After the various overall household and child-specific expenditures were estimated, these total amounts were allocated among the four family members (husband, wife, older child, and younger child). The estimated expenditures for clothing and child care and education were for children only. It was assumed that these expenses were allocated equally to each child: therefore, the estimated expenditures were divided by two (the number of children in the household).
Because the CE did not collect expenditures on food and health care by family member, data from other Federal studies were used to apportion these budgetary components to children by age. Shares of the food budget as a percentage of total food expenditures--for the younger child in a husband-wife household with two children--were determined by using the 1994 USDA food plans (U.S. Department of Agriculture, 1994). These shares were estimated by age of the child and household income level. The food budget shares were then applied to estimated household food expenditures to determine food expenses on children. Shares of the health care budget as a percentage of total health care expenses for the younger child in a husband-wife household with two children were calculated from the 1987 National Medical Expenditure Survey (Lefkowitz & Monheit, 1991). These shares were estimated by age of the child and applied to estimated household health care expenditures to determine expenses on children.
No research base exists for allocating estimated household expenditures on housing, transportation, and miscellaneous goods and services among household members. The marginal cost method and the per capita method are two of the most common approaches for allocating these expenses.
The marginal cost method measures expenditures on children as the difference in expenses between couples with children and equivalent childless couples. This method depends on development of an equivalency measure; however, there is no universally accepted measure. Proposed methods have produced different estimates of expenditures on children. (4)
Some of the marginal cost approaches assume that parents or couples do not alter expenditures on themselves after a child is added to a household. Also, couples without children often buy larger-than-needed homes at the time of purchase in anticipation of children. Comparing the expenditures of childless couples with expenditures of similar couples that have children could lead to underestimated expenditures on children. Lastly, the marginal cost method does not provide a direct estimate of how much is spent on a child. It estimates how much money families with children must be compensated to bring the parents to the same utility level (as gauged by an equivalence scale) of couples without children. This is a different question from "how much do parents spend on children?"
For these reasons, the USDA uses the per capita method to allocate housing, transportation, and miscellaneous goods and services among household members. The per capita method allocates expenses among household members in equal proportions. Although the per capita method has limitations, these limitations were considered less severe than those of the marginal cost approach.
A major limitation of the per capita method is that expenditures for an additional child may be less than average expenditures. Consequently, for households of different sizes, adjustment formulas were devised to estimate expenditures on one child or three or more children. These formulas are discussed later in the paper. Transportation expenses resulting from employment activities are not related to expenses on children, so these costs were excluded from the estimated household transportation expenses. Data used to estimate work-related transportation expenses were from a 1990 study by the U.S. Department of Transportation (1994).
Although the USDA uses the per capita approach rather than a marginal cost approach in allocating housing, transportation, and miscellaneous expenditures to children in a household, a USDA study examined how these expenses would be allocated using different marginal cost approaches (Lino & Johnson, 1995). These marginal cost approaches produced estimates of expenditures on children for housing and miscellaneous goods and services below those produced by the per capita method. In addition, these approaches produced estimates of transportation expenditures on children above those produced by the per capita method.
Estimated Expenditures on Children by Husband-Wife Households
Estimates of family expenditures on the younger child in husband-wife households with two children are presented in tables 2 through 7 on pp. 36-41. The estimates are for the overall United States, urban regions, and overall rural areas. Household income levels were updated to 2000 dollars by using the all-items category of the CPI-U, and expenditures were updated by using the CPI for the corresponding item (i.e., the CPI's for housing, food, etc.). Regional estimates were updated to 2000 dollars by using the regional CPI' s. The following subsections highlight the child-rearing expense estimates for the younger child in a two-child household for the overall United States by income level, budgetary component, and age of the child. Child-rearing expenses by region are also discussed.
Income Level
Estimated expenses on children vary considerably by household income level (fig. 1). Depending on age of the child, the annual expenses range from $6,280 to $7,380 for families in the lowest income group (2000 before-tax income less than $38,000), from $8,740 to $9,860 for families in the middle-income group (2000 before-tax income between $38,000 and $64,000), and from $13,000 to $14,260 for families in the highest income group (2000 before-tax income more than $64,000). On average, households in the lowest group spend 28 percent of their before-tax income per year on a child; those in the middle-income group, 18 percent; and those in the highest income group, 14 percent. The range in these percentages would be narrower if after-tax income were considered, because a greater percentage of income in higher income households goes toward taxes.
[FIGURE 1 OMITTED]
Although families in the highest income group spend, on average, slightly less than twice the amount on a child than that spent by families in the lowest income group, the amount varies by budgetary component. In general, expenses on a child for goods and services considered to be necessities (e.g., food and clothing) do not vary as much as those considered to be discretionary (e.g., miscellaneous expenses) among households in the three income groups. For example, clothing expenses on a child age 15-17 average $670 in the lowest income group and $1,020 in the highest income group, a 52-percent difference. Miscellaneous expenses on a child of the same age average $640 in the lowest income group and $1,630 in the highest income group, a 155-percent difference.
Budgetary Component
Housing accounts for the largest share of total child-rearing expenses. The box on p. 30 shows this for families in the middle-income group. Based on an average for the six age groups, housing accounts for 33 to 36 percent of child-rearing expenses for a child; the percentage rises with income. Food is the second largest average expense on a child for families regardless of income level. It accounts for 20 percent of child-rearing expenses for a child in the lowest income group, 18 percent in the middle-income group, and 15 percent in the highest income group. Transportation, the third largest child-rearing expense, makes up 14 to 15 percent of child-rearing expenses across income levels.
Across the three income groups, miscellaneous goods and services (personal care items, entertainment, and reading materials) is the fourth largest expense on a child for families (10 to 12 percent). For families, clothing (excluding that received as gifts or hand-me-downs) accounts for 6 to 8 percent of expenses on a child, child care and education accounts for 8 to 11 percent, and health care accounts for 6 to 7 percent of child-rearing expenses across income groups. Estimated expenditures for health care include only out-of-pocket expenses (including insurance premiums not paid by an employer or other organization) and not that portion covered by health insurance.
Age of Child
Expenditures on a child are lower in the younger age categories and higher in the older age categories. Figure 2 depicts this for families in the middle-income group. This held across income groups and held even though housing expenses, the highest child-rearing expenditure, generally decline as the child ages. The decline in housing expenses reflects diminishing interest paid by homeowners over the life of a mortgage. Payments on principal are not considered part of housing costs in the CE; they are deemed to be part of savings.
[FIGURE 2 OMITTED]
For all three income groups, food, transportation, clothing, and health care expenses related to child-rearing generally increase as the child ages. Transportation expenses are highest for a child age 15-17, when he or she would start driving. Child care and education expenses are highest for a child under age 6. Most of this expense may be attributable to child care at this age. The estimated expense for child care and education may seem low for those with the expense. The estimates reflect the average of households with and without the expense.
Region
Child-rearing expenses in the regions reflect patterns observed in the overall United States: in each region, expenses on a child increase with household income level and, generally, with age of the child (fig. 3). Overall child-rearing expenses are highest in the urban West, followed by the urban Northeast, and urban South. Child-rearing expenses are lowest in the urban Midwest and rural areas. Much of the difference in expenses on a child among regions is related to housing costs. Total housing expenses on a child are highest in the urban West and urban Northeast and lowest in rural areas. However, child-rearing transportation expenses are highest for families in rural areas. This likely reflects the longer traveling distances and the lack of public transportation in these areas.
[FIGURE 3 OMITTED]
Adjustments for Older Children and Household Size
The expense estimates on a child represent expenditures on the younger child at various ages in a husband-wife household with two children. It cannot be assumed that expenses on the older child are the same at these various ages. Expenses may vary by birth order. The method described on pp. 26-28 was repeated to determine whether a difference exists, the extent of this difference, and how the expenditures may be adjusted to estimate expenses on an older child. The focus was on the older child in each of the same age categories as those used with the younger child. A two-child family was again used as the standard. Household income and U.S. region of residence were not held constant, so findings are applicable to all families.
On average, for husband-wife households with two children, expenditures do not vary by birth order. So, the expenditures in tables 2 through 7 reflect those on either child in a two-child family. Thus, annual expenditures on children in a husband-wife, two-child family may be estimated by summing the expenses for the two appropriate age categories. For example, annual expenditures on children ages 9-11 and 15-17 in a husband-wife family in the middle-income group for the overall United States would be $18,810 ($8,950 4- $9,860). For specific budgetary components, annual expenses on an older child vary, compared with those on a younger child: families spend more on clothing and education for an older child but less on transportation.
The estimates should also be adjusted if a household has only one child or more than two children. Families will spend more or less on a child depending on the number of other children in the household and economies of scale. Multivariate analysis was used to estimate expenditures for each budgetary component to derive these figures. Household size and age of the younger child were controlled; household income level and region of the country were not. The results, therefore, are applicable to all families. These expenditures were then assigned to a child by using the method described earlier. Compared with expenditures for each child in a husband-wife, two-child family, expenditures for the child in a one-child family average 24 percent more and for those with three or more children, 23 percent less on each child.
To adjust the figures in tables 2 through 7 to estimate annual overall expenditures on an only child, users of this report should, therefore, add 24 percent to the total expense for the child's age category. To estimate expenditures on three or more children, users should subtract 23 percent from the total expense for each child's age category and then sum the totals. An example of adjustments needed for different number of children follows. The total expenses for a middle-income family in the overall United States on a child age 15-17 with no siblings would be $12,230 ($9,860 x 1.24) and the total expenses on three children ages 3-5, 12-14, and 15-17 would be $21,970 ([$8,980 + $9,690 + $9,860] x .77). For a particular budgetary component, the percentages may be more or less. As family size increases, food costs per child decrease less than housing and transportation costs per child decrease.
Expenditures by Single-Parent Families
The estimates of expenditures on children by husband-wife families do not apply to single-parent families, a group that accounts for an increasing percentage of families with children. Therefore, separate estimates of child-rearing expenses in single-parent households were made by using the CE data. Most single-parent families in the survey (90 percent) were headed by a woman.
The method used in determining child-rearing expenses for two-parent households was followed. Multivariate analysis was used to estimate expenditures for each budgetary component. Control variables were income level, household size, and age of the younger child (the same age categories as those used with children in two-parent families). A single parent with two children was used as the standard for household size.
Income groups of single-parent households (before-tax income under $31,000 and $31,000 and over in 1992 dollars, inflated to 2000 dollars) were selected to correspond with the income groups used in estimating child-rearing expenditures in husband-wife households. This income includes child support payments. The two higher income groups of two-parent families (income between $31,000 and $52,160 and over $52,160 in 1992 dollars) were combined because only 17 percent of single-parent households had a before-tax income of $31,000 and over. The sample was weighted to reflect the U.S. population of interest.
Children's clothing and child care and education expenditures were divided between the two children in the one-parent household. For food and health care, household member shares were calculated for a three-member household (single parent and two children, with the younger child in one of the six age categories). The USDA food plans and the 1987 National Medical Expenditure Survey were used to do this. These shares for the younger child in a single-parent family were then applied to estimated food and health care expenditures to determine expenses on the younger child in each age category.
Housing, transportation, and miscellaneous expenditures were allocated among household members on a per capita basis. Transportation expenses were adjusted to account for nonemployment-related activities in single-parent families. Income and expenses were updated to 2000 dollars.
Child-rearing expense estimates for single-parent families are in table 8, p. 42. For the lower income group (2000 before-tax income less than $38,000), a comparison is presented in table 1 of estimated expenditures on the younger child in a single-parent family with two children versus expenditures on the younger child in a husband-wife family with two children. As discussed earlier, 83 percent of single-parent families and 33 percent of husband-wife families were in this lower income group. More single-parent than husband-wife families were in the bottom range of this lower income group. Average income for single-parent families in the lower income group is $15,900; for husband-wife families it is $23,800. However, total expenditures on a child through age 17 are, on average, only 5 percent lower in single-parent households than in two-parent households.
Single-parent families in this lower income group, therefore, spend a larger proportion of their income on children than do two-parent families. On average, housing expenses are higher; whereas, transportation, health care, child care and education, and miscellaneous expenditures on a child are lower in single-parent than in husband-wife households. Child-related food and clothing expenditures are similar, on average, in single- and two-parent families.
For the higher income group of single-parent families (2000 before-tax income of $38,000 and over), child-rearing expense estimates are about the same as those for two-parent households in the before-tax income group of $64,000 and over. Total expenses, in 2000 dollars, for the younger child through age 17 are $242,910 for single-parent families versus $241,770 for husband-wife families. Child-rearing expenses for the higher income group of single-parent families, therefore, also are a larger proportion of income than they are in husband-wife families. Thus, expenditures on children do not differ much between single-parent and husband-wife households. What differs is household income levels. Because single-parent families have one less potential earner than do husband-wife families, on average, their total household income is lower, and child-rearing expenses are a greater percentage of this income.
Estimates cover only out-of-pocket child-rearing expenditures made by the parent with primary care of the child and do not include child-related expenditures made by the parent without primary care or made by others, such as grandparents. Such expenditures could not be estimated from the data. Overall expenses by both parents on a child in a single-parent household are likely greater than estimates of this study.
The procedure detailed earlier was repeated to determine the extent of the difference in expenditures on an older child in single-parent households. The focus was on the older child, and a family with two children was used as the standard. On average, single-parent households with two children spend 7 percent less on the older child than on the younger child (in addition to age-related differences). This contrasts with husband-wife households whose expenditures are unaffected by birth order.
As with husband-wife households, single-parent households spend more or less if there is only one child or three or more children. Multivariate analysis was used to estimate expenditures for each budgetary component to determine these differences. Household size and age of the younger child were control variables. Expenditures were then assigned to a child by using the method described earlier. Compared with expenditures for the younger child in a single-parent, two-child family, expenditures for an only child in a single-parent household average 35 percent more, and expenditures for three or more children in a single-parent household average 28 percent less on each child.
Other Expenditures on Children
Expenditures on a child that were estimated in this study consist of direct parental expenses made on a child through age 17 for seven major budgetary components. These direct expenditures exclude costs related to childbirth and prenatal health care. In 1996 these particular health care costs averaged $7,090 for a normal delivery and $11,450 for a Cesarean delivery (Mushinski, 1998). These costs may be reduced by health insurance.
One of the largest expenses made on children after age 17 is the cost of a college education. The College Board (2000) estimates that in 2000-2001, average annual tuition and fees are $3,420 at 4-year public colleges and $13,688 at 4-year private colleges. Annual room and board is $4,705 at 4-year public colleges and $5,447 at 4-year private colleges. For 2-year colleges in 2000-2001, average annual tuition and fees are $1,655 at public colleges and $8,210 at private colleges. Annual room and board is $4,685 at 2-year private colleges. No estimates of room and board are given for 2-year public colleges. Other parental expenses on children after age 17 include those associated with children living at home, or if children do not live at home, gifts and other contributions to them.
The estimates do not include all government expenditures on children. Examples of excluded expenses are public education, Medicaid, and school meals. The actual expenditures on children (by parents and the government) would be higher than reported in this study, especially for the lowest income group.
Indirect child-rearing costs are also not included in the estimates. Although these costs are typically more difficult to measure than are direct expenditures, they can be substantial. The time involved in rearing children is considerable. In addition, one or both parents may need to reduce hours spent in the labor force to care for children, thus reducing current earnings and future career opportunities. The indirect costs of child rearing may exceed the direct costs. For more on these indirect costs, see Bryant, Zick, and Kim (1992); Ireland and Ward (1995); Longman (1998); and Spalter-Roth and Hartmann (1990).
Table 1. Comparison of estimated 2000 expenditures on a child (1)
by lower income single-parent and husband-wife families
Single-parent Husband-wife
Age of child households households
0 - 2 $5,270 $6,280
3 - 5 5,950 6,420
6 - 8 6,710 6,520
9 - 11 6,260 6,530
12 - 14 6,730 7,380
15 - 17 7,460 7,280
Total (0 - 17) $115,140 $121,230
(1) Estimates are for the younger child in two-child families in the
overall United States with 2000 before-tax income less than $38,000.
Table 2. Estimated annual expenditures * on a child by
husband-wife families, overall United States, 2000
Transpor-
Age of Child Total Housing Food tation
Before-tax income: Less than $38,000 (Average=$23,800)
0 - 2 $6,280 $2,400 $880 $770
3 - 5 6,420 2,370 980 750
6 - 8 6,520 2,290 1,260 870
9 - 11 6,530 2,070 1,510 950
12 - 14 7,380 2,310 1,590 1,070
15 - 17 7,280 1,860 1,720 1,440
Total $121,230 $39,900 $23,820 $17,550
Before-tax income: $38,000 to $64,000 (Average=$50,600)
0 - 2 $8,740 $3,250 $1,060 $1,150
3 - 5 8,980 3,220 1,220 1,130
6 - 8 8,990 3,140 1,550 1,250
9 - 11 8,950 2,920 1,830 1,330
12 - 14 9,690 3,150 1,840 1,450
15 - 17 9,860 2,710 2,050 1,830
Total $165,630 $55,170 $28,650 $24,420
Before-tax income: More than $64,000 (Average=$95,800)
0 - 2 $13,000 $5,160 $1,400 $1,610
3 - 5 13,280 5,130 1,580 1,590
6 - 8 13,160 5,050 1,910 1,710
9 - 11 13,020 4,830 2,220 1,790
12 - 14 13,870 5,070 2,330 1,910
15 - 17 14,260 4,620 2,450 2,310
Total $241,770 $89,580 $35,670 $32,760
Child care Miscel-
Health and laneous
Age of Child Clothing care education ([dagger])
Before-tax income: Less than $38,000 (Average=$23,800)
0 - 2 $380 $440 $800 $610
3 - 5 370 420 900 630
6 - 8 410 490 530 670
9 - 11 450 530 320 700
12 - 14 760 540 230 880
15 - 17 670 570 380 640
Total $9,120 $8,970 $9,480 $12,390
Before-tax income: $38,000 to $64,000 (Average=$50,600)
0 - 2 $440 $580 $1,310 $950
3 - 5 430 560 1,450 970
6 - 8 480 630 930 1,010
9 - 11 530 690 610 1,040
12 - 14 890 690 450 1,220
15 - 17 790 730 770 980
Total $10,680 $11,640 $16,560 $18,510
Before-tax income: More than $64,000 (Average=$95,800)
0 - 2 $580 $670 $1,980 $1,600
3 - 5 570 640 2,160 1,610
6 - 8 620 730 1,490 1,650
9 - 11 680 790 1,030 1,680
12 - 14 1,120 790 790 1,860
15 - 17 1,020 840 1,390 1,630
Total $13,770 $13,380 $26,520 $30,090
* Estimates are based on 1990-92 Consumer Expenditure Survey data
updated to 2000 dollars using the Consumer Price Index. For each
age category, the expense estimates represent average child-rearing
expenditures for each age (e.g., the expense for the 3-5 age
category, on average, applies to the 3-year-old, the 4-year-old,
or the 5-year-old). The figures represent estimated expenses on the
younger child in a two-child family. Estimates are about the same
for the older child, so to calculate expenses for two children, figures
should be summed for the appropriate age categories. To estimate
expenses for an only child, multiply the total expense for the
appropriate age category by 1.24. To estimate expenses for each child
in a family with three or more children, multiply the total expense
for each appropriate age category by 0.77. For expenses on all
children in a family, these totals should be summed.
([dagger]) Miscellaneous expenses include personal care items,
entertainment, and reading materials.
Table 3. Estimated annual expenditures * on a child by
husband-wife families, urban West, ([dagger]) 2000
Transpor-
Age of Child Total Housing Food tation
Before-tax income: Less than $38,200 (Average=$23,800)
0 - 2 $7,000 $2,930 $970 $850
3 - 5 7,160 2,910 1,080 830
6 - 8 7,300 2,870 1,380 940
9 - 11 7,400 2,710 1,660 1,010
12 - 14 8,200 2,910 1,730 1,140
15 - 17 8,150 2,500 1,870 1,510
Total $135,630 $50,490 $26,070 $18,840
Before-tax income: $38,200 to $64,200 (Average=$50,800)
0 - 2 $9,470 $3,770 $1,140 $1,240
3 - 5 9,730 3,750 1,310 1,220
6 - 8 9,770 3,710 1,670 1,330
9 - 11 9,810 3,550 1,970 1,410
12 - 14 10,520 3,750 1,980 1,540
15 - 17 10,730 3,340 2,200 1,920
Total $180,090 $65,610 $30,810 $25,980
Before-tax income: More than $64,200 (Average=$96,100)
0 - 2 $13,600 $5,580 $1,470 $1,710
3 - 5 13,910 5,560 1,660 1,690
6 - 8 13,810 5,520 2,000 1,800
9 - 11 13,760 5,360 2,340 1,870
12 - 14 14,550 5,550 2,440 2,000
15 - 17 14,980 5,140 2,580 2,400
Total $253,830 $98,130 $37,470 $34,410
Miscel-
Child care laneous
Health and ([double
Age of Child Clothing care education dagger])
Before-tax income: Less than $38,200 (Average=$23,800)
0 - 2 $360 $380 $790 $720
3 - 5 350 360 890 740
6 - 8 390 410 530 780
9 - 11 440 440 320 820
12 - 14 740 460 230 990
15 - 17 650 480 380 760
Total $8,790 $7,590 $9,420 $14,430
Before-tax income: $38,200 to $64,200 (Average=$50,800)
0 - 2 $430 $510 $1,320 $1,060
3 - 5 420 490 1,460 1,080
6 - 8 460 550 930 1,120
9 - 11 510 600 610 1,160
12 - 14 860 610 450 1,330
15 - 17 770 630 770 1,100
Total $10,350 $10,170 $16,620 $20,550
Before-tax income: More than $64,200 (Average=$96,100)
0 - 2 $560 $600 $1,990 $1,690
3 - 5 550 570 2,170 1,710
6 - 8 600 650 1,490 1,750
9 - 11 660 700 1,040 1,790
12 - 14 1,080 710 810 1,960
15 - 17 980 740 1,410 1,730
Total $13,290 $11,910 $26,730 $31,890
* Estimates are based on 1990-92 Consumer Expenditure Survey data
updated to 2000 dollars using the regional Consumer Price Index.
For each age category, the expense estimates represent average
child-rearing expenditures for each age (e.g., the expense for the
3-5 age category, on average, applies to the 3-year-old, the
4-year-old, or the 5-year-old). The figures represent estimated
expenses on the younger child in a two-child family. Estimates are
about the same for the older child, so to calculate expenses for
two children, figures should be summed for the appropriate age
categories. To estimate expenses for an only child, multiply the
total expense for the appropriate age category by 1.24. To estimate
expenses for each child in a family with three or more children,
multiply the total expense for each appropriate age category by
0.77. For expenses on all children in a family, these totals
should be summed.
([dagger]) The Western region consists of Alaska, Arizona, California,
Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah,
Washington, and Wyoming.
([double dagger]) Miscellaneous expenses include personal care items,
entertainment, and reading materials.
Table 4. Estimated annual expenditures * on a child by
husband-wife families, urban Northeast, ([dagger]) 2000
Transpor-
Age of Child Total Housing Food tation
Before-tax income: Less than $37,800 (Average=$23,600)
0 - 2 $6,570 $2,860 $980 $640
3 - 5 6,700 2,840 1,080 610
6 - 8 6,910 2,800 1,390 720
9 - 11 7,050 2,640 1,660 800
12 - 14 7,920 2,840 1,740 930
15 - 17 7,800 2,440 1,870 1,280
Total $128,850 $49,260 $26,160 $14,940
Before-tax income: $37,800 to $63,500 (Average=$50,200)
0 - 2 $8,990 $3,680 $1,150 $1,030
3 - 5 9,200 3,660 1,310 1,000
6 - 8 9,330 3,620 1,670 1,120
9 - 11 9,400 3,460 1,970 1,190
12 - 14 10,190 3,660 1,970 1,320
15 - 17 10,330 3,260 2,190 1,690
Total $172,320 $64,020 $30,780 $22,050
Before-tax income: More than $63,500 (Average=$95,100)
0 - 2 $13,010 $5,440 $1,470 $1,490
3 - 5 13,310 5,430 1,650 1,470
6 - 8 13,290 5,390 1,990 1,580
9 - 11 13,250 5,230 2,320 1,650
12 - 14 14,160 5,420 2,430 1,780
15 - 17 14,450 5,020 2,550 2,170
Total $244,410 $95,790 $37,230 $30,420
Miscel-
Child care laneous
Health and ([double
Age of Child Clothing care education dagger])
Before-tax income: Less than $37,800 (Average=$23,600)
0 - 2 $400 $430 $660 $600
3 - 5 390 410 750 620
6 - 8 440 470 430 660
9 - 11 490 510 250 700
12 - 14 830 520 180 880
15 - 17 730 550 290 640
Total $9,840 $8,670 $7,680 $12,300
Before-tax income: $37,800 to $63,500 (Average=$50,200)
0 - 2 $480 $580 $1,120 $950
3 - 5 460 550 1,250 970
6 - 8 510 630 780 1,000
9 - 11 570 670 500 1,040
12 - 14 970 690 360 1,220
15 - 17 860 720 620 990
Total $11,550 $11,520 $13,890 $18,510
Before-tax income: More than $63,500 (Average=$95,100)
0 - 2 $610 $670 $1,750 $1,580
3 - 5 600 650 1,910 1,600
6 - 8 660 740 1,290 1,640
9 - 11 720 780 870 1,680
12 - 14 1,200 800 670 1,860
15 - 17 1,090 830 1,160 1,630
Total $14,640 $13,410 $22,950 $29,970
* Estimates are based on 1990-92 Consumer Expenditure Survey data
updated to 2000 dollars using the regional Consumer Price Index.
For each age category, the expense estimates represent average
child-rearing expenditures for each age (e.g., the expense for the
3-5 age category, on average, applies to the 3-year-old, the
4-year-old, or the 5-year-old). The figures represent estimated
expenses on the younger child in a two-child family. Estimates are
about the same for the older child, so to calculate expenses for
two children, figures should be summed for the appropriate age
categories. To estimate expenses for an only child, multiply the
total expense for the appropriate age category by 1.24. To estimate
expenses for each child in a family with three or more children,
multiply the total expense for each appropriate age category by
0.77. For expenses on all children in a family, these totals
should be summed.
([dagger]) The Northeast region consists of Connecticut, Maine,
Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania,
Rhode Island, and Vermont.
([double dagger]) Miscellaneous expenses include personal care items,
entertainment, and reading materials.
Table 5. Estimated annual expenditures * on a child by
husband-wife families, urban South, ([dagger]) 2000
Transpor-
Age of Child Total Housing Food tation
Before-tax income: Less than $38,000 (Average=$23,700)
0 - 2 $6,300 $2,330 $850 $760
3 - 5 6,470 2,310 960 740
6 - 8 6,580 2,270 1,240 850
9 - 11 6,650 2,110 1,500 920
12 - 14 7,450 2,310 1,570 1,050
15 - 17 7,410 1,900 1,700 1,410
Total $122,580 $39,690 $23,460 $17,190
Before-tax income: $38,000 to $63,900 (Average=$50,500)
0 - 2 $8,830 $3,150 $1,030 $1,150
3 - 5 9,090 3,130 1,190 1,130
6 - 8 9,090 3,090 1,530 1,240
9 - 11 9,080 2,930 1,810 1,310
12 - 14 9,810 3,130 1,820 1,440
15 - 17 10,070 2,730 2,030 1,820
Total $167,910 $54,480 $28,230 $24,270
Before-tax income: More than $63,900 (Average=$95,600)
0 - 2 $12,990 $4,930 $1,360 $1,620
3 - 5 13,280 4,910 1,540 1,590
6 - 8 13,150 4,870 1,860 1,700
9 - 11 13,050 4,710 2,180 1,780
12 - 14 13,880 4,900 2,280 1,910
15 - 17 14,380 4,500 2,410 2,300
Total $242,190 $86,460 $34,890 $32,700
Miscel-
Child care laneous
Health and ([double
Age of Child Clothing care education dagger])
Before-tax income: Less than $38,000 (Average=$23,700)
0 - 2 $400 $490 $890 $580
3 - 5 390 470 1,000 600
6 - 8 440 540 600 640
9 - 11 490 580 370 680
12 - 14 810 590 260 860
15 - 17 720 610 440 630
Total $9,750 $9,840 $10,680 $11,970
Before-tax income: $38,000 to $63,900 (Average=$50,500)
0 - 2 $480 $640 $1,450 $930
3 - 5 470 620 1,600 950
6 - 8 510 700 1,040 980
9 - 11 570 750 690 1,020
12 - 14 940 760 520 1,200
15 - 17 840 790 890 970
Total $11,430 $12,780 $18,570 $18,150
Before-tax income: More than $63,900 (Average=$95,600)
0 - 2 $620 $740 $2,160 $1,560
3 - 5 610 710 2,340 1,580
6 - 8 660 810 1,640 1,610
9 - 11 720 860 1,150 1,650
12 - 14 1,180 880 900 1,830
15 - 17 1,070 910 1,590 1,600
Total $14,580 $14,730 $29,340 $29,490
* Estimates are based on 1990-92 Consumer Expenditure Survey data
updated to 2000 dollars using the regional Consumer Price Index.
For each age category, the expense estimates represent average
child-rearing expenditures for each age (e.g., the expense for the
3-5 age category, on average, applies to the 3-year-old, the
4-year-old, or the 5-year-old). The figures represent estimated
expenses on the younger child in a two-child family. Estimates are
about the same for the older child, so to calculate expenses for
two children, figures should be summed for the appropriate age
categories. To estimate expenses for an only child, multiply the
total expense for the appropriate age category by 1.24. To estimate
expenses for each child in a family with three or more children,
multiply the total expense for each appropriate age category by
0.77. For expenses on all children in a family, these totals
should be summed.
([dagger]) The Southern region consists of Alabama, Arkansas, Delaware,
District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland,
Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee,
Texas, Virginia, and West Virginia.
([double dagger]) Miscellaneous expenses include personal care items,
entertainment, and reading materials.
Table 6. Estimated annual expenditures * on a child by
husband-wife families, urban Midwest, ([dagger]) 2000
Transpor-
Age of Child Total Housing Food tation
Before-tax income: Less than $38,300 (Average=$23,900)
0 - 2 $5,710 $2,130 $810 $690
3 - 5 5,850 2,110 910 660
6 - 8 5,970 2,070 1,180 780
9 - 11 6,050 1,910 1,440 850
12 - 14 6,840 2,110 1,500 990
15 - 17 6,790 1,700 1,640 1,350
Total $111,630 $36,090 $22,440 $15,960
Before tax income: $38,300 to $64,500 (Average=$51,000)
0 - 2 $8,190 $2,960 $990 $1,090
3 - 5 8,430 2,940 1,150 1,070
6 - 8 8,460 2,900 1,470 1,180
9 - 11 8,460 2,740 1,750 1,250
12 - 14 9,160 2,940 1,750 1,390
15 - 17 9,370 2,530 1,970 1,770
Total $156,210 $51,030 $27,240 $23,250
Before-tax income: More than $64,500 (Average=$96,500)
0 - 2 $12,310 $4,760 $1,310 $1,570
3 - 5 12,600 4,740 1,490 1,540
6 - 8 12,510 4,700 1,810 1,660
9 - 11 12,400 4,540 2,120 1,730
12 - 14 13,200 4,730 2,220 1,870
15 - 17 13,630 4,330 2,350 2,270
Total $229,950 $83,400 $33,900 $31,920
Miscel-
Child care laneous
Health and ([double
Age of Child Clothing care education dagger])
Before-tax income: Less than $38,300 (Average=$23,900)
0 - 2 $340 $410 $780 $550
3 - 5 330 390 880 570
6 - 8 370 440 520 610
9 - 11 410 480 310 650
12 - 14 700 490 220 830
15 - 17 610 520 370 600
Total $8,280 $8,190 $9,240 $11,430
Before tax income: $38,300 to $64,500 (Average=$51,000)
0 - 2 $400 $550 $1,300 $900
3 - 5 390 520 1,440 920
6 - 8 440 600 920 950
9 - 11 490 640 600 990
12 - 14 820 650 440 1,170
15 - 17 720 680 760 940
Total $9,780 $10,920 $16,380 $17,610
Before-tax income: More than $64,500 (Average=$96,500)
0 - 2 $530 $640 $1,970 $1,530
3 - 5 520 610 2,150 1,550
6 - 8 570 700 1,480 1,590
9 - 11 620 750 1,020 1,620
12 - 14 1,030 760 790 1,800
15 - 17 930 790 1,390 1,570
Total $12,600 $12,750 $26,400 $28,980
* Estimates are based on 1990-92 Consumer Expenditure Survey data
updated to 2000 dollars using the regional Consumer Price Index. For
each age category, the expense estimates represent average
child-rearing expenditures for each age (e.g., the expense for the
3-5 age category, on average, applies to the 3-year-old, the
4-year-old, or the 5-year-old). The figures represent estimated
expenses on the younger child in a two-child family. Estimates are
about the same for the older child, so to calculate expenses for two
children, figures should be summed for the appropriate age categories.
To estimate expenses for an only child, multiply the total expense for
the appropriate age category by 1.24. To estimate expenses for each
child in a family with three or more children, multiply the total
expense for each appropriate age category by 0.77. For expenses
on all children in a family, these totals should be summed.
([dagger]) The Midwest region consists of Illinois, Indiana, Iowa,
Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio,
South Dakota, and Wisconsin.
([double dagger]) Miscellaneous expenses include personal care items,
entertainment, and reading materials.
Table 7. Estimated annual expenditures * on a child by
husband-wife families, Rural areas, ([dagger]) 2000
Transpor-
Age of Child Total Housing Food tation
Before-tax income: Less than $38,300 (Average=$23,900)
0 - 2 $5,690 $1,750 $830 $880
3 - 5 5,850 1,730 930 860
6 - 8 5,990 1,700 1,210 970
9 - 11 6,080 1,530 1,470 1,050
12 - 14 6,870 1,730 1,530 1,180
15 - 17 6,830 1,330 1,670 1,540
Total $111,930 $29,310 $22,920 $19,440
Before-tax income: $38,300 to $64,500 (Average=$51,000)
0 - 2 $8,200 $2,580 $1,010 $1,280
3 - 5 8,430 2,560 1,170 1,250
6 - 8 8,480 2,520 1,500 1,370
9 - 11 8,490 2,360 1,780 1,440
12 - 14 9,220 2,560 1,790 1,570
15 - 17 9,420 2,150 2,000 1,950
Total $156,720 $44,190 $27,750 $26,580
Before-tax income: More than $64,500 (Average=$96,500)
0 - 2 $12,320 $4,360 $1,340 $1,750
3 - 5 12,610 4,340 1,520 1,720
6 - 8 12,510 4,300 1,840 1,840
9 - 11 12,420 4,140 2,150 1,910
12 - 14 13,270 4,340 2,250 2,040
15 - 17 13,690 3,930 2,390 2,440
Total $230,460 $76,230 $34,470 $35,100
Miscel-
Child care laneous
Health and ([double
Age of Child Clothing care education dagger])
Before-tax income: Less than $38,300 (Average=$23,900)
0 - 2 $370 $480 $790 $590
3 - 5 360 460 900 610
6 - 8 400 530 530 650
9 - 11 450 570 320 690
12 - 14 760 580 230 860
15 - 17 670 610 380 630
Total $9,030 $9,690 $9,450 $12,090
Before-tax income: $38,300 to $64,500 (Average=$51,000)
0 - 2 $440 $640 $1,320 $930
3 - 5 430 610 1,460 950
6 - 8 470 690 940 990
9 - 11 530 740 610 1,030
12 - 14 890 750 450 1,210
15 - 17 790 780 770 980
Total $10,650 $12,630 $16,650 $18,270
Before-tax income: More than $64,500 (Average=$96,500)
0 - 2 $570 $730 $2,000 $1,570
3 - 5 560 710 2,170 1,590
6 - 8 610 800 1,500 1,620
9 - 11 670 850 1,040 1,660
12 - 14 1,120 870 810 1,840
15 - 17 1,010 900 1,410 1,610
Total $13,620 $14,580 $26,790 $29,670
* Estimates are based on 1990-92 Consumer Expenditure Survey data
updated to 2000 dollars using the population size Consumer Price
Index. For each age category, the expense estimates represent
average child-rearing expenditures for each age (e.g., the expense
for the 3-5 age category, on average, applies to the 3-year-old,
the 4-year-old, or the 5-year-old). The figures represent estimated
expenses on the younger child in a two-child family. Estimates are
about the same for the older child, so to calculate expenses for
two children, figures should be summed for the appropriate age
categories. To estimate expenses for an only child, multiply the
total expense for the appropriate age category by 1.24. To estimate
expenses for each child in a family with three or more children,
multiply the total expense for each appropriate age category by
0.77. For expenses on all children in a family, these totals
should be summed.
([dagger]) Rural areas are places of fewer than 2,500 people outside
a Metropolitan Statistical Area.
([double dagger]) Miscellaneous expenses include personal care items,
entertainment, and reading materials.
Table 8. Estimated annual expenditures * on a child by
single-parent families, overall United States, 2000
Transpor-
Age of Child Total Housing Food tation
Before-tax income: Less than $38,000 (Average=$15,900)
0 - 2 $5,270 $2,150 $980 $720
3 - 5 5,950 2,450 1,030 630
6 - 8 6,710 2,600 1,300 740
9 - 11 6,260 2,500 1,500 530
12 - 14 6,730 2,500 1,510 610
15 - 17 7,460 2,650 1,640 960
Total $115,140 $44,550 $23,880 $12,570
Before tax income: $38,000 or more (Average=$57,800)
0 - 2 $12,100 $4,640 $1,510 $2,210
3 - 5 13,000 4,930 1,600 2,120
6 - 8 13,820 5,080 1,920 2,220
9 - 11 13,330 4,980 2,300 2,020
12 - 14 14,140 4,990 2,260 2,100
15 - 17 14,580 5,140 2,390 2,270
Total $242,910 $89,280 $35,940 $38,820
Child care Miscel-
Health and laneous
Age of Child Clothing care education ([dagger])
Before-tax income: Less than $38,000 (Average=$15,900)
0 - 2 $340 $210 $500 $370
3 - 5 360 310 680 490
6 - 8 420 370 620 660
9 - 11 430 470 300 530
12 - 14 720 500 380 510
15 - 17 840 490 290 590
Total $9,330 $7,050 $8,310 $9,450
Before tax income: $38,000 or more (Average=$57,800)
0 - 2 $480 $490 $1,230 $1,540
3 - 5 500 660 1,540 1,650
6 - 8 580 750 1,440 1,830
9 - 11 590 900 840 1,700
12 - 14 970 950 1,190 1,680
15 - 17 1,110 940 970 1,760
Total $12,690 $14,070 $21,630 $30,480
* Estimates are based on 1990-92 Consumer Expenditure Survey data
updated to 2000 dollars using the Consumer Price Index. For each
age category, the expense estimates represent average child-rearing
expenditures for each age (e.g., the expense for the 3-5 age
category, on average, applies to the 3-year-old, the 4-year-old, or
the 5-year-old). The figures represent estimated expenses on the
younger child in a single-parent, two-child family. For estimated
expenses on the older child, multiply the total expense for the
appropriate age category by 0.93. To estimate expenses for two
children, the expenses on the younger child and older child after
adjusting the expense on the older child downward should be summed
for the appropriate age categories. To estimate expenses for an
only child, multiply the total expense for the appropriate age
category by 1.35. To estimate expenses for each child in a family
with three or more children, multiply the total expense for each
appropriate age category by 0.72 after adjusting the expenses on
the older children downward. For expenses on all children in a
family, these totals should be summed.
([dagger]) Miscellaneous expenses include personal care items,
entertainment, and reading materials.
(1) The Expenditures on Children by Families: 2000 Annual Report provides a more detailed description of the data and methods. To obtain a copy, contact USDA, Center for Nutrition Policy and Promotion, 3101 Park Center Drive, Room 1034, Alexandria, VA 22302 (telephone: 703-305-7600).
(2) Urban areas are defined as Metropolitan Statistical Areas (MSA's) and other places of 2,500 or more people outside an MSA; rural areas are places of less than 2,500 people outside an MSA.
(3) Complete income reporters are households that provide values for major sources of income, such as wages and salaries, self-employment income, and Social Security income.
(4) For a review of equivalency measures and estimates of expenditures on children resulting from them, see U.S. Department of Health and Human Services, Office of the Assistant Secretary for Planning and Evaluation, 1990, Estimates of Expenditures on Children and Child Support Guidelines (U.S. Department of Health and Human Services, 1990).
References
Bryant, W.K., Zick, C.D., & Kim, H. (1992). The Dollar Value of Household Work. College of Human Ecology, Ithaca, NY: Cornell University.
The College Board. (2000). Trends in College Pricing 2000. Retrieved March 2001 from www.collegeboard.org.
Ireland, T.R., & Ward, J.O. (1995). Valuing Children in Litigation: Family and Individual Loss Assessment. Tucson, AZ: Lawyers and Judges Publishing Company, Inc.
Lefkowitz, D., & Monheit, A. (1991). Health Insurance, Use of Health Services, and Health Care Expenditures. National Medical Expenditure Survey Research Findings 12. Publication No. 92-0017. U.S. Department of Health and Human Services, Public Health Service, Agency for Health Care Policy and Research.
Lino, M., & Johnson, D.S. (1995). Housing, transportation, and miscellaneous expenditures on children: A comparison of methodologies. Family Economics Review 8(1):2-12.
Longman, P.J. (1998, March 30). The Cost of Children. U.S. News & World Report 124(12):50-58.
Mushinski, M. (1998). Average charges for uncomplicated vaginal, Cesarean and VBAC deliveries: Regional variations, United States, 1996. Statistical Bulletin 79(3):17-28.
Spalter-Roth, R.M., & Hartmann, H.I. (1990). Unnecessary Losses: Costs to Americans of the Lack of Family and Medical Leave. Washington, DC: Institute for Women's Policy Research.
U.S. Department of Agriculture, Agricultural Research Service. (1994). Cost of food at home. Family Economics Review 7(4):45.
U.S. Department of Commerce, Bureau of the Census. (2000). Statistical Abstract of the United States, 2000. [120th ed.].
U.S. Department of Health and Human Services, Office of the Assistant Secretary for Planning and Evaluation. (1990). Estimates of Expenditures on Children and Child Support Guidelines.
U.S. Department of Transportation, Federal Highway Administration. (1994). 1990 Nationwide Personal Transportation Study.
RELATED ARTICLE: Categories of household expenditures.
Housing expenses consists of shelter (mortgage interest, property taxes, or rent; maintenance and repairs; and insurance), utilities (gas, electricity, fuel, telephone, and water), and house furnishings and equipment (furniture, floor coverings, major appliances, and small appliances). For homeowners, housing expenses do not include mortgage principal payments; in the Consumer Expenditure Survey, such payments are considered to be part of savings. So, total dollars allocated to housing by homeowners are underestimated in this report.
Food expenses consists of food and nonalcoholic beverages purchased at grocery, convenience, and specialty stores, including purchases with food stamps; dining at restaurants; and household expenditures on school meals.
Transportation expenses consists of the net outlay on the purchase of new and used vehicles, vehicle finance charges, gasoline and motor oil, maintenance and repairs, insurance, and public transportation.
Clothing expenses consists of children's apparel such as diapers, shirts, pants, dresses, and suits; footwear; and clothing services such as dry cleaning, alterations and repair, and storage.
Health care expenses consists of medical and dental services not covered by insurance, prescription drugs and medical supplies not covered by insurance, and health insurance premiums not paid by the employer or other organization.
Child care and education expenses consists of day care tuition and supplies; baby-sitting; and elementary and high school tuition, books, and supplies.
Miscellaneous expenses consists of personal care items, entertainment, and reading materials.
RELATED ARTICLE: Expenditures on children over time.
Since 1960 the U.S. Department of Agriculture has provided estimates of expenditures on children from birth through age 17. The original estimates were based on the 1960 Consumer Expenditure Survey. The figure that follows shows how these expenditure estimates have changed from 1960 to 2000. Depicted are the average total expenditures on a child from birth through age 17 in a middle-income, husband-wife family. Total expenses are in 2000 dollars (1960 expenses are adjusted for inflation).
Expenses to raise a child through age 17 have increased in real terms, from $146,780 in 1960 to $165,630 in 2000. New components of child-rearing costs, particularly child care, are among factors causing this increase. In 1960 child care expenses were negligible, because many mothers were not in the labor force. In 2000 child care expenses were among the largest expenditures made on preschool children by middle-income families.
Expenditures on a child through age 17 by middle-income,
husband-wife families
1960
Housing 32%
Miscellaneous 12%
Child care and education 1%
Clothing 11%
Health care 4%
Transportation 16%
Food 24%
Total expenses = $146,780 (in 2000 dollars)
Note: Table made from pie chart.
2000
Housing 33%
Miscellaneous 11%
Child care and education 10%
Clothing 6%
Health care 7%
Transportation 15%
Food 18%
Total expenses = $165,630
Note: Table made from pie chart.
RELATED ARTICLE: Estimating future costs.
The estimates presented in this study represent household expenditures on a child of a certain age in 2000. To estimate these expenses for the first 17 years, we need to incorporate future price changes in the figures. To do this, we use a future cost formula, such that:
[C.sub.f] = [C.sub.p] [(1+i).sup.n]
where:
[C.sub.f] = projected future annual dollar expenditure on a child of a particular age
[C.sub.p] = present (2000) annual dollar expenditure on a child of a particular age
i = projected annual inflation (or deflation)
n = number of years from present until child will reach a particular age
An example is presented of estimated future expenditures on the younger child in a husband-wife family with two children for each of the three income groups for the overall United States. The example assumes a child is born in 2000 and reaches age 17 in the year 2017. The example also assumes that the average annual inflation rate over this time is 3.8 percent, the average annual inflation rate over the past 20 years (U.S. Department of Commerce, 2000). Thus total family expenses on a child through age 17 would be $171,460, $233,530, and $340,130 for households in the lowest, middle, and highest income groups, respectively. In 2000 dollars, these figures would be $121,230, $165,630, and $241,770.
Inflation rates other than 3.8 percent could be used in the formula if projections of these rates vary in the future. Also, it is somewhat unrealistic to assume that households remain in one income category as a child ages. For most families, income rises over time. In addition, such projections assume child-rearing expenditures change only with inflation, but parental expenditure patterns also change over time.
Estimated annual expenditures on children (1) born
in 2000, by income group, overall United States
Income group
Year Age Lowest Middle Highest
2000 <1 $6,280 $8,740 $13,000
2001 1 6,520 9,070 13,490
2002 2 6,770 9,420 14,010
2003 3 7,180 10,040 14,850
2004 4 7,450 10,420 15,420
2005 5 7,740 10,820 16,000
2006 6 8,160 11,240 16,460
2007 7 8,470 11,670 17,090
2008 8 8,790 12,120 17,740
2009 9 9,130 12,520 18,210
2010 10 9,480 13,000 18,910
2011 11 9,840 13,490 19,620
2012 12 11,550 15,160 21,700
2013 13 11,980 15,740 22,520
2014 14 12,440 16,330 23,380
2015 15 12,740 17,250 24,950
2016 16 13,220 17,910 25,900
2017 17 13,720 18,590 26,880
Total $171,460 $233,530 $340,130
(1) Estimates are for the younger child in husband-wife
families with two children.
Mark Lino, PhD
U.S. Department of Agriculture
Center for Nutrition Policy and Promotion
COPYRIGHT 2002 Superintendent Of Documents
COPYRIGHT 2004 Gale Group