How Much Does It Cost to Raise a Child Today? | American Funds

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College Savings

How Much Does It Cost to Raise a Child Today?

Few things potentially trigger more worry about money than the thought of starting a family. But choosing the right investment advisor and taking a long-term approach to investing can help parents manage the costs of parenthood.

*$304,480 adjusted for projected inflation. (Projected inflationary costs estimated to average 2.4% per year. The estimate is calculated by averaging the rate of inflation over the previous 20 years.)

Source: USDA's Expenditures on Children by Families report, 2013 (doesn't include cost of college)

U.S. average for the younger child in middle income (parents with income between $61,530 and $106,540) husband wife families with two children. Child care and education expenses only for families with expense.


Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.