The cost of raising a child keeps going up, according to a recent survey by the U.S. Department of Agriculture. They estimate that a child born in 2006 will cost $197,700 through the age of 17 for a family earning an average of $59,300. This number, of course, varies based on total family income and number of children in a household, but lower-income households also spend a great deal on their children.

It is estimated that, from ages 15 to 17, the cost of a child is $16,970 a year. So where does the money go? Once again, it depends on total family income, but the figures are staggering regardless of income. For families making more than $74,900 per year, $5,540 is allocated to housing, $2,850 to food, $2,730 to transportation, $940 to clothes, $1,080 to healthcare, $2,010 to school-related expenses, and $1,820 to miscellaneous. Some of you may find these costs high; but, for others, $940 a year would not begin to pay for their clothes. That is an average clothing budget of $78 per month. How much did you spend on clothes during your last trip to the mall?

Children can help lower the cost of parenting through better money management, and teenagers can be great role model for younger siblings. Let’s look at each category individually for ways to cut expenses.

Housing – Many teens like to redecorate their rooms for a more “adult” feel. If you want a new look for your room, shop local consignment and vintage furniture shops; and don’t forget garage and estate sales. They provide an opportunity to get something unique at great savings. And, if you are saving your parents money, they may be more likely to let you express yourself.

Food – No doubt, teens can eat a lot. Remember that eating out adds up, even with fast food. A McDonald’s value meal for lunch five days a week would cost you nearly $30. Pack your lunch or eat at home during the week and reserve eating out for the weekend, as social outings.

Transportation – Do we even need to talk about cars? Realize that a new car for a teenager is out of the question for most families. Be realistic, find a reliable used car that will meet your needs, or, even better, ride with siblings or friends to school and social events. You can also help your parents with insurance by making good grades and taking a driver’s education course.

Clothes – Most teens consider their wardrobe important, but you can save money and still get nice clothes. Try shopping for name brands at local consignment stores and look also for savings online. You can often find new clothes at consignment shops, with the tags still on. And, once you are tired of your gently used clothes, you can resell them at the same consignment shop, giving you a little money for more clothes. Consider this part of your effort to reduce, reuse, and recycle.

Health Care – Unfortunately, teens cannot do much to reduce health care costs. Families typically pay most of their health care costs in premiums for health insurance. Still, making an effort to stay healthy—eating right, exercising, and getting enough sleep—helps reduce what your parents have to pay for doctor co-pays and prescriptions.

School – This is another category for which you will not be able to cut much of the cost. Out-of-district fees, band fees, and classroom supplies all cost money, whatever you do. You can do without name brands for supplies, but don’t miss out on extracurricular opportunities just because they cost money. Try to cut costs elsewhere.

Miscellaneous – This includes entertainment, personal-care items, books, magazines, etc. This is where a teenager’s allowance or part-time job should come into play. Budget your own money so that it will go further and don’t ask your parents for spending money every time a new movie or video game comes out.

Remember that the idea of budgeting is to know where you are spending your money and to make every dollar count. Becoming budget conscious will help put more cash in your wallet, as well as your parents’. You might even strike a deal with your parents: every dollar you consciously save them now, they could put into your college fund. You will definitely need the money then.

Reference: Expenditures on Children by Families 2006, by Mark Lino, April 2007 http://www.cnpp.usda.gov/Publications/CRC/crc2006.pdf

Source: Adapted from HSFPP Update # 187, written by Jennifer Hunter, Ph.D. student majoring in Family Finance, Department of Family Studies, University of Kentucky