Cost of raising a child rises to more than $233,000

WASHINGTON -- Expecting a baby? Congratulations! Better put plenty of money in your savings account.

The Department of Agriculture said the estimated cost of raising a child from birth through age 17 is $233,610, or as much as almost $14,000 annually.

That's the average for a middle-income couple with two children. It's a bit more expensive in urban parts of the country, and less so in rural areas.

The estimate released Monday is based on 2015 numbers, so a baby born this year is likely to cost more. It's a 3 percent increase from the prior year, a hike higher than inflation.

Since 1960, USDA has compiled the annual report to inform -- and probably terrify -- budget-preparing parents.

State governments and courts also use the information to write child-support and foster-care guidelines.

The main costs include housing, food, transportation, health care, education, clothing and other miscellaneous expenses.

Things to know about how much it costs to raise a child:

Housing is expensive

Up to a third of the total cost is housing, accounting for 26 to 33 percent of the total expense of raising a child.

USDA comes up with those numbers by calculating the average cost of an additional bedroom -- an approach the department said probably is conservative, because it doesn't account for those families who pay more to live in communities that have better schools or other amenities for children.

Urban vs. rural

The cost of raising a child varies in different regions of the country.

Overall, middle-income, married-couple families in the urban Northeast spent the most ($253,770), followed by those in the urban West ($235,140) and urban South ($221,730).

Those in the urban Midwest spent less ($217,020), along with those in rural areas ($193,020).

USDA estimates the annual housing cost per child in urban areas is $3,900, while it's $2,400 in rural areas.

There also were differences depending on income. Lower-income families are expected to spend around $174,690 per child from birth through 17; higher-income families will spend $372,210.

Child-care costs rise

After housing, child care, education and food are the highest costs for families.

For a middle-income couple with two children, food costs make up about 18 percent of the cost of raising a child. Child care and education costs make up 16 percent.

Education costs have risen since 1960, when USDA estimated those expenses were about 2 percent of child-rearing expenses.

The report states this growth likely is due to the increased number of women in the workforce, prompting the need for more child care.

The numbers don't include the annual cost of college, which the government estimates is $45,370 for a private college and $20,090 for a public college.

Older kids prove costly

New parents may flinch at the cost of diapers, but it's going to get worse. While a child costs around $12,680 when he or she is between 0 and 2, a teenager between 15 and 17 costs about $13,900 annually.

USDA said food, transportation, clothing and health-care expenses all grow as a child ages.

Transportation costs are highest for the oldest children, perhaps because they start driving.