Study shows that raising a child is more expensive than ever

Wisconsin residents may be interested in a study which shows the cost of raising a child as being higher than ever. This may have implications in a divorce settlement where the amount of child support is an issue.

A study from the U.S. Department of Agriculture concludes that it takes an average of $241,080 to raise a child until adulthood. If the child goes to college, the study says that the number is almost double. While the actual amount varies depending on a number of factors, such as geography, income and size of the family, the average is still up from previous years. The new average for a child born in 2012 is the highest in the study’s history, 2.6 percent higher than the number from 2011 and 23 percent higher than the cost in the study’s first year in 1960.

Seven different categories are measured and ranked by the study. Across the board, housing was the largest proportion of expenses, averaging about 30 percent of the amount for one child. The actual numbers change depending on income levels, as well. For example, a family that has an income of less than $60,640 is likely to spend around $173,490 on their child until adulthood. A family making more than $105,000, however, averages more than double what the lower-income family spends.

Calculating child support payments in a contested divorce is extremely important, as these monthly payments are used by the custodial parent for everyday expenses and often help when that spouse has a lower income. An attorney who is familiar with child support and custody issues may be able to help ensure that the proper amount of child support is provided in the support agreement.

Source: LA Times, “Price tag for raising a baby until adulthood: $241,080”, Shan Li, August 29, 2013