The USDA just released a report that stated Honolulu is the second most expensive place to raise a child. The only real surprise here is the fact that Honolulu wasn’t ranked the MOST expensive place to raise a child. Honolulu trailed only New York City. We all know that raising a child in Hawaii is very costly, but the actual numbers that have been put together are very eye opening.
According to the USDA report, a child born in 2013 will cost a middle-income American family an average of $245,340 until he or she reaches the age of 18. This number does not include college expenses, nor does it take into account how much more it will cost if a child lives with you longer or comes back home to live after college.
What Costs Are Included: Food, housing, childcare and education – rose 1.8 percent over the previous year. As you can see, the report left out other varying info such as medical, dental, clothing and random things like purchase of a car for a child and entertainment amenities. Add all of that into the number above and you get an even more staggering amount.
When adjusting for projected inflation, the report found that a child born last year could cost a middle-income family an average of about $304,480.
The USDA’s annual report, based on the government’s Consumer Expenditure Survey, found families were consistent in how they spent their money across all categories from 2012 to 2013. The costs associated with pregnancy or expenses accumulated after a child becomes an adult, such as college tuition, were not included.
Since 1960: In 1960, the first year the report was issued, a middle-income family could spend about $25,230, equivalent to $198,560 in 2013 dollars, to raise a child until the age of 18. Housing costs remain the greatest child-rearing expense, as they did in the 1960s, although current-day costs like childcare were negligible back then.
Decrease Expenses: Expenses per child decrease as a family has more children, the report found, as families with three or more children spend 22 percent less per child than families with two children. That’s because more children share bedrooms, clothing and toys, and food can be purchased in larger, bulk quantities.
Even if you do have more than two children the amount is staggering. The fact of the matter is that if you love in Hawaii, or want to live in Hawaii, then you will pay an astounding amount of money to raise a child.
You want paradise? You got it…but it will cost you. Interesting side note, Hilo also made it into the top five, coming in as the fifth most expensive place to raise a child.