If your wallet's been lighter since you became a mom, it's no coincidence. On average, raising one child costs $12,658 a year, for a grand total of $227,862 from birth to age 18, according to IBISworld.com. (Note, that doesn't include paying for college tuition.)
Children are most expensive in the western U.S. (8.1 percent above average) and in the eastern regions (4.9 percent more.) Breaking down the cost of raising a child, IBISworld.com says we spend:
- 35 percent on housing
- 17 percent on food
- 14 percent on transportation
- 11 percent on child care and education
- 7 percent on health care
- 5 percent on clothing
If you focus on cutting your spending for the top items on the list, you'll have the biggest impact on your household budget. Think about refinancing your mortgage or moving to a cheaper home. Buy groceries in bulk, if you're one of the few families not doing this yet. And what about teaching your kids to carpool or using public transportation more?
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