How Much Does It Cost to Raise a Child?

Understanding the costs of raising a child may help you create a roadmap for managing your finances, identifying where you can save, and setting long-term financial goals. According to SmartAsset, the total cost of raising a child born in 2023 can reach nearly $375,000, including essentials like food, clothing, and education.²

Developing good money management habits early on is crucial to preparing for the long-term costs of raising children. If you want to feel more confident and prepared for the expenses of raising a child, below are some ideas on what to expect, along with some budgeting and resource tips.

Initial Expenses of Welcoming a Newborn

Whether preparing for your first child or planning for a second, welcoming a newborn involves a variety of expenses. Here are some early estimated costs to consider, keeping in mind premium items or services could cost more: 

Delivery Costs

Without insurance, a vaginal birth averages over $14,000 and a C-section is approximately $26,000 at a hospital. According to a recent Forbes article, a vaginal birth will likely cost about $2,700, and a C-section around $3,200 dependent upon the type of insurance coverage and the specifics of your health insurance plan.²

Some alternative options for delivery include home births or birthing centers might offer different, more affordable costs of childbirth but could have higher risks. 

Baby Gear & Nursery Setup

For a nursery, expect to budget between $275 and $1,700 for essentials such as a crib and mattress, car seat, stroller, and changing table, according to Costhelper.³

Other baby gear essentials, such as a baby monitor, highchair, and baby-proofing supplies could add another $200 to $500 to your expenses on average, also noted by Costhelper.³

Post-Birth Expenses

When budgeting for a baby, Costhelper notes to expect to spend an average of $130 to $300 on immediate expenses such as diapers, wipes, baby clothes, and formula. Breastfeeding supplies could add $20 to $350.³

Daycare & Preschool Costs

According to a recent article by TrustedCare, full-time daycare could cost between $400 and $1,500 per month. High-quality centers may be more expensive.⁴

Costs for preschool programs range from $400 to $1,300 per month, depending on whether it’s a private institution or part of a public school system, as noted by TrustedCare.⁴

Ongoing Expenses for Basic Needs

While the early costs of raising a newborn are significant, financial responsibilities evolve as your child grows. Here’s a breakdown of the essential costs that are typically required throughout their childhood:

Food & Nutrition

Expect to spend approximately $150 to $300 monthly on groceries and food costs for a school-aged child according to the USDA.⁵ Costs may vary based on eating habits, age, and dietary needs. Keep in mind that these expenses could fluctuate due to inflation rates.

Additional food costs for school lunches and snacks, noted by the School Nutrition Association, could add another $55 to $65 per month.⁶

Clothing & Personal Items

A recent article from The Ascent recommends budgeting approximately $120 monthly for clothing costs, including seasonal changes and special occasions.⁷ 

The Bureau of Labor Statistics states items like toiletries, skincare products, and other personal care items cost, on average $72 a month but may vary depending on spending habits.⁸

Primary & Secondary Education

While public schooling has no tuition fees there could be alternative education expenses, such as supplies, uniforms, and field trips. These additional expenses could be up to $600 on average according to USA Today.⁹

Private school tuition typically ranges from $5,000 to $30,000 annually, according to a recent article by the Education Data Initiative, with variations based on location, type of school, and fees.¹⁰ Higher-income families often choose private schools for benefits like smaller class sizes and specialized programs.

Housing Costs

Moving to a larger household typically means higher rent, property taxes, or mortgage payments, which vary by location and household size. Additionally, many hospitals require proof of housing before releasing you from the hospital after delivery. 

Some additional costs that could increase with a larger home would be utility bills and maintenance.

With a larger household, your utility bills may increase as your energy costs for heating, cooling, and lighting rise. Additionally, more space generally requires extra upkeep, leading to potentially higher maintenance costs.

Healthcare & Medical Expenses

When planning for a child's healthcare, it's important to consider various medical expenses and remember that many hospitals require a designated child's physician before discharge. 

These costs include routine check-ups, which, depending on your insurance coverage, Doctor visits may cost between $20 and $50 per checkup according to a recent article by The Pricer.¹¹

Additionally, according to Dental Plans, depending on your insurance coverage, regular dental and potential orthodontic care may add $65 to $100 per checkup, while vision exams and glasses or contacts could add $10 to $20 per exam per a recent Forbes article.^12,13

   Create a plan for recurring costs and adjust as your family grows. Get My Free Financial Review  

Sources

1. Raising a Child Can Cost More Than $30K Per Year in the U.S. – 2023 Study. https://smartasset.com/data-studies/cost-raise-child-2023
2. How Much Does It Cost to Have a Baby? 2024 Averages. https://www.forbes.com/advisor/health-insurance/average-childbirth-cost/
3. Find Out What Price Other People Are Paying. https://children.costhelper.com/ 
4. How Much Does Child Care Cost? https://trustedcare.com/costs/child-care-cost
5. Official USDA Food Plans: Cost of Food at Home at Three Levels, U.S. Average, April 2024. https://fns-prod.azureedge.us/sites/default/files/resource-files/Cost_Of_Food_Low_Moderate_Liberal_Food_Plans_April_2024.pdf
6. School Meal Statistics https://schoolnutrition.org/about-school-meals/school-meal-statistics/#prices
7. The Average American Spends This Much on Clothes Every Year. https://www.fool.com/the-ascent/personal-finance/articles/the-average-american-spends-this-much-on-clothes-every-year/
8. Consumer Expenditures--2022. https://www.bls.gov/news.release/pdf/cesan.pdf
9. Back to School 2023: Could This Be the Most Expensive School Year Ever? Maybe. https://www.usatoday.com/story/money/shopping/2023/07/29/back-to-school-essentials-spending-higher-than-ever/70444329007/
10. Average Cost of Private School. https://educationdata.org/average-cost-of-private-school#:~:text=%2412%2C594%20is%20the%20average%20annual,for%20private%20elementary%20school%20students.
11. How Much Does a Well Baby Doctor Visit Cost?  https://www.thepricer.org/well-baby-doctor-visit-cost/#:~:text=Here%E2%80%99s%20what%20to%20expect%3A%201%20Uninsured%20%E2%80%93%20%24300,deductible%20%E2%80%93%20%2420%20to%20%2450%20copay%20per%20visit
12. The Cost of Dental Care & How to Save. https://www.dentalplans.com/blog/oral-health-cost-and-lifetime-value/
13. How Much Is an Eye Exam? https://www.forbes.com/advisor/health-insurance/how-much-is-an-eye-exam/
14. Parents With Young Children Spend an Average of $731 Annually on Kids’ Extracurriculars, and the Majority Believe It’ll Lead to Income or Career. https://www.lendingtree.com/credit-cards/study/kids-extracurriculars/
15. How Much Does a Tutor Cost? https://trustedcare.com/costs/tutor-cost#:~:text=Tutoring%20costs%20%2420%20to%20%24100%2B%20per%20hour%20on,tutor%20rates%20average%20%2430%20to%20%2480%20per%20hour.
16. How Much Does a New Car Cost? https://www.moneygeek.com/insurance/auto/average-price-of-a-new-car/
17. Average Monthly Expenses: From a Single Person to a Family of 5. Average Monthly Expenses: From a Single Person to a Family of 5 - NerdWallet