NEW YORK, June 22, 2020 /PRNewswire/ -- Nearly every
American family understands that raising children is an enormous
financial commitment — but do families have a clear idea of the
dollar amounts involved? A new report from ValuePenguin.com by
LendingTree compared data on child-related spending to the median
income of families across the country, and here are the key
findings from this analysis:
- Over 18 years, total spending by two-child households came
out to an average of $252,072 per
child. Annually, a typical two-child family will spend
$14,000 on each child on
average.
- The metro areas where families spent the most money on
raising children are San
Francisco-Oakland-Berkeley,
Calif; San
Jose-Sunnyvale-Santa Clara, Calif; Urban Honolulu, Hawaii; Washington DC Metro, and the New York City Metro. Families here will spend
between $297,000 to $330,000 per child ($16,500 - $18,500
annually).
- The metro areas where families spent the highest portion of
their incomes on children are Greensboro-High
Point, N.C; Miami-Fort
Lauderdale-Pompano Beach,
Fla; Deltona-Daytona Beach-Ormond
Beach, Fla; El Paso, Texas
and McAllen-Edinburg-Mission,
TX. Families here spend between 25%-30% of their income on
raising children.
- Housing costs represented the largest annual expense for
children at $3,970 (28% of total
spending). Food took up $2,480 (18%),
followed by child care and education at $2,280 (16%).
- Each additional child increased total family spending, but
also reduced the amount spent per child. Households with only
one child spent 27% more per child than those with two kids,
while families with three children spent 24% less.
According to Chris Moon,
Insurance Product Manager at ValuePenguin.com, "It's helpful to
understand that the data reflects typical spending - in other words
how much parents probably spend in any event — not how much they're
supposed to spend." He adds, "Getting ahead of your spending with a
budget, saving for educational expenses and emergencies, and
looking into options like life insurance are ways parents can
manage the daunting financial challenge of raising a child."
ValuePenguin.com analysts obtained annual and total spending
amounts on children from the USDA, the Bureau of Economic Analysis
and the Census Bureau's American Community Survey for their
analysis. These figures reflect realities from 2019 - the
disruptive economic effects of the coronavirus makes it harder to
know how child-related spending and family incomes will be impacted
in 2020. To view the full report, visit:
https://www.valuepenguin.com/how-financially-prepared-are-couples-for-children
50 Most Expensive
Metros To Raise A Child
|
MSA
|
Annual
spending per
child
|
Median
income
|
Ratio of
spending vs.
income
|
San
Francisco-Oakland-Berkeley, CA
|
$18,429
|
$107,112
|
17%
|
San
Jose-Sunnyvale-Santa Clara, CA
|
$18,121
|
$121,234
|
15%
|
Urban Honolulu,
HI
|
$17,392
|
$87,955
|
20%
|
New
York-Newark-Jersey City, NY-NJ-PA
|
$17,378
|
$77,981
|
22%
|
Washington-Arlington-Alexandria,
DC-VA-MD-WV
|
$16,496
|
$102,260
|
16%
|
Oxnard-Thousand
Oaks-Ventura, CA
|
$16,398
|
$86,683
|
19%
|
Los Angeles-Long
Beach-Anaheim, CA
|
$16,398
|
$72,546
|
23%
|
San Diego-Chula
Vista-Carlsbad, CA
|
$16,300
|
$78,626
|
21%
|
Bridgeport-Stamford-Norwalk, CT
|
$16,146
|
$95,628
|
17%
|
Boston-Cambridge-Newton, MA-NH
|
$15,992
|
$90,268
|
18%
|
Seattle-Tacoma-Bellevue, WA
|
$15,810
|
$87,363
|
18%
|
Miami-Fort
Lauderdale-Pompano Beach,
FL
|
$15,390
|
$57,220
|
27%
|
New Haven-Milford,
CT
|
$15,166
|
$70,134
|
22%
|
Riverside-San
Bernardino-Ontario, CA
|
$14,984
|
$64,463
|
23%
|
Baltimore-Columbia-Towson, MD
|
$14,942
|
$83,825
|
18%
|
Philadelphia-Camden-Wilmington, PA-NJ-
DE-MD
|
$14,760
|
$71,482
|
21%
|
Denver-Aurora-Lakewood, CO
|
$14,690
|
$78,251
|
19%
|
Portland-Vancouver-Hillsboro, OR-WA
|
$14,536
|
$75,280
|
19%
|
Sacramento-Roseville-Folsom, CA
|
$14,508
|
$71,995
|
20%
|
Worcester,
MA-CT
|
$14,466
|
$74,077
|
20%
|
Chicago-Naperville-Elgin, IL-IN-WI
|
$14,452
|
$72,024
|
20%
|
Portland-South
Portland, ME
|
$14,452
|
$69,217
|
21%
|
Minneapolis-St.
Paul-Bloomington, MN-WI
|
$14,368
|
$80,054
|
18%
|
Hartford-East
Hartford-Middletown, CT
|
$14,298
|
$77,328
|
18%
|
Houston-The
Woodlands-Sugar Land, TX
|
$14,256
|
$65,702
|
22%
|
Dallas-Fort
Worth-Arlington, TX
|
$14,102
|
$69,458
|
20%
|
Stockton,
CA
|
$14,102
|
$65,784
|
21%
|
North
Port-Sarasota-Bradenton, FL
|
$14,074
|
$59,884
|
24%
|
Austin-Round
Rock-Georgetown, TX
|
$14,032
|
$78,089
|
18%
|
Albany-Schenectady-Troy, NY
|
$13,990
|
$70,520
|
20%
|
Providence-Warwick,
RI-MA
|
$13,990
|
$66,558
|
21%
|
Allentown-Bethlehem-Easton, PA-NJ
|
$13,976
|
$69,294
|
20%
|
Colorado Springs,
CO
|
$13,892
|
$68,447
|
20%
|
Tampa-St.
Petersburg-Clearwater, FL
|
$13,864
|
$55,732
|
25%
|
Salt Lake City,
UT
|
$13,822
|
$74,919
|
18%
|
Orlando-Kissimmee-Sanford, FL
|
$13,822
|
$58,498
|
24%
|
Phoenix-Mesa-Chandler, AZ
|
$13,738
|
$64,145
|
21%
|
Cape Coral-Fort
Myers, FL
|
$13,696
|
$57,688
|
24%
|
Rochester,
NY
|
$13,682
|
$59,535
|
23%
|
Atlanta-Sandy
Springs-Alpharetta, GA
|
$13,626
|
$68,974
|
20%
|
Springfield,
MA
|
$13,626
|
$59,659
|
23%
|
Virginia
Beach-Norfolk-Newport News,
VA-NC
|
$13,584
|
$67,414
|
20%
|
Charleston-North
Charleston, SC
|
$13,556
|
$64,124
|
21%
|
Las
Vegas-Henderson-Paradise, NV
|
$13,556
|
$58,990
|
23%
|
Madison,
WI
|
$13,527
|
$74,588
|
18%
|
Raleigh-Cary,
NC
|
$13,527
|
$76,330
|
18%
|
Harrisburg-Carlisle,
PA
|
$13,527
|
$66,855
|
20%
|
Syracuse,
NY
|
$13,513
|
$61,556
|
22%
|
Fresno, CA
|
$13,513
|
$53,152
|
25%
|
Bakersfield,
CA
|
$13,499
|
$51,797
|
26%
|
About ValuePenguin.com: ValuePenguin.com, part of
LendingTree (NASDAQ: TREE), is a personal finance website that
conducts in-depth research and provides objective analysis to help
guide consumers to the best financial decisions. ValuePenguin
focuses on value, assessing whether the return of a particular
decision is worth the cost or risk of that option, and how this
stacks up with the other possible choices they may have. For more
information, please visit www.valuepenguin.com, like our Facebook
page or follow us on Twitter @ValuePenguin.
Additional Resources:
https://www.valuepenguin.com/best-child-life-insurance
Media Contact:
Divya
Sangam (Ms.)
646 693 8445
Divya@lendingtreenews.com
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SOURCE ValuePenguin.com