According to information released Monday, a middle-class American family will spend an average of $245,340 to raise a child born in 2013, The Associated Press reported.
But for Northeast families, that number will jump to $282,480, because the urban Northeast spends more than the urban South and rural parts of the U.S., according to the Agricultural Department's study, "Expenditures on Children and Families."
Pregnancy costs and expenses after a child becomes an adult, such as college tuition, were not included in the study, AP stated.
But why is it costing families more?
The price of food, housing, childcare and education has increased by 1.8 percent, or $4,260 since last year, which contributes to the large sum of $245,340, CNN reported.
And it doesn't stop there. We can expect the cost to go up to $304,480 after projected inflation.
The first report issued in 1960 revealed that a middle-income family would spend over $25,000, which is equivalent to almost $199,000 in 2013 to raise their child until he or she reached 18 years old.
The annual report, based on the government's Consumer Expenditure Survey, includes housing, food, transportation, clothing, health care, pre-college education, childcare and other miscellaneous expenses, according to CNN.
Housing expenses made up about 30 percent of the total cost associated with raising a child for middle-income families, the study found. The second-largest expenses at 18 percent were child care and education, with food coming in third at 16 percent.
While there is good news, like overall costs recently growing slowly due to low inflation, according to economist Mark Lino who has written USDA's annual report since 1987, the country's median income is still more than 8 percent below where it was before the recession, according to CNN.
However, parents with more children are in luck. The study shows that the expenses per child decrease if the family has three or more children. Families will make better use of their materials by promoting sharing among siblings, including clothing and toys. Sharing bedrooms will also help to save money. Families with three or more children will spend 22 percent less per child than families with two children.
Expectant parents should plan and save ahead of time in order to be prepared for their obligations, said Matt Becker, a financial planner who often works with new parents.
