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According to a new analysis, the cost of raising a child by age 17 has risen to over $300,000 due to rising inflation.
The Brookings Institution ran the numbers for The Wall Street Journal and found that the average amount a middle-income married couple with two children would spend raising a child born in 2015 through high school is now US$310,605. dollars is estimated.
That’s about $18,270 per year, a 9% increase from the previous estimate due to rising prices ravaging Americans’ budgets.
The average cost of raising a child born in 2015 to age 17 is now more than $300,000. (RJ Sangosti/MediaNews Group/The Denver Post via Getty Images/Getty Images)
Brookings used data from the US Department of Agriculture’s most recent “Expenditures on Children by Families Report” from 2017 and updated it to reflect higher inflation rates in the US.
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The consumer price index is hovering near a 40-year high for a wide range of goods, including food, petrol, clothing and housing.
At USDA’s last census, the average cost of raising a child born in 2015 was $233,610, but that was with the expectation that inflation would be around the Federal Reserve’s 2% target rate.
A new analysis by the Brookings Institution found that the cost of raising a child in the US has risen sharply in recent years due to inflation. (Jessica Rinaldi/The Boston Globe via Getty Images/Getty Images)
Isabel Sawhill, a Brookings senior fellow who led the new analysis, told FOX Business that increased inflation has “made everything — including raising children — a whole lot more expensive.”
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The latest data from the Labor Department shows that the consumer price index rose 8.5% yoy in July but slowed from the 9.1% rate recorded in June.
A student says goodbye to his mother and father on the first day of kindergarten on August 11, 2022 at Sunkist Elementary School in Anaheim, California. The cost of raising children — and everything else — is owing to skyrocketing inflation in the US (Paul Bersebach/MediaNews Group/Orange County Register via Getty Images/Getty Images)
To explain the Fed’s actions in raising interest rates to combat price hikes, Brookings looked back at trends from recent times when inflation was so high in the 1980s. An average inflation of 4% is assumed in the further life of a child born in 2015.
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Sawhill says it’s important to note that the analysis only considers the cost of raising a child up to the age of 17. So anyone planning to send a child to college or other higher education institution can expect to pay even more.