USDA REPORT ESTIMATES CHILD BORN IN 1999 WILL COST $160,140 TO RAISE Release No. 0138.00 Mary Beth Schultheis (202) 720-4623 mary_beth.schultheis@usda.gov John Webster (202) 418-2312 john.webster@usda.gov USDA REPORT ESTIMATES CHILD BORN IN 1999 WILL COST $160,140 TO RAISE WASHINGTON, April 27, 2000 Agriculture Secretary Dan Glickman today released a new report finding that a family with a child born in 1999 can expect to spend about $160,140 ($237,000 when adjusted for inflation) for food, shelter, and other necessities to raise that child over the next seventeen years. "The cost of raising a child is jUST above 2 percent from last year, a testament to the amazingly strong U.S. economy and our low rate of inflation," Glickman said. For 1999, the child-rearing cost estimate for middle-income, two-parent families ranges from $8,450 to $9,530, depending on the age of the child. The report by USDA's Center for Nutrition Policy and Promotion notes that family income affects child rearing costs, with low-income families projected to spend $117,390; middle-income families $160,140; and upper-income families $233,850 over a seventeen year period. In 1960, a middle-income family could expect to spend $25,230 to raise a child through age seventeen. Housing costs are the single largest expenditure on a child, averaging $53,310 or 33 percent of the total costs over seventeen years. Food was the second largest expense, averaging $27,990 or 18 percent of the total. The report notes geographic variations in the cost of raising a child, with expenses the highest for families living in the urban West, followed by the urban Northeast and urban South. Families living in the urban Midwest and rural areas have the lowest child-rearing expenses. USDA develops annual estimates on the cost of raising a child to assist state agencies and courts in determining child support guidelines and foster care payments. The full report, "Expenditures on Children by Families," is available on the web at www.usda.gov/cnpp. #