â€œPeople just keep spending more on their children,â€ according to a USDA report.
According to a new report by the U.S. Department of Agriculture, middle-income families with a child born in 2011 can expect to spend $8,000 more over the course of raising that child than families with children born in 2010 and earlier. Thatâ€™s a 3.5 percent increase over the 2010 number, and the culprits are not items that you can necessarily â€œscrimp and pinchâ€ on. The sharp spike in the cost of kids is due, in large part, to dramatic increases in expenses for transportation, child care, education, and food. These factors â€œsurgedâ€ in 2011, according to the report, causing the jump in the total cost of raising a child from $227,000 to $235,000. The USDA report blames the surge in cost in large part on gas prices, which make â€œcar trips to soccer gamesâ€¦more costlyâ€. However, noted USDA economist Mark Lino, all aspects of expenditures on children are heading steadily upward.
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