How much does it cost to raise a child?


A report prepared by Robert Williams, Ph D.; David Price, Ph D.; and Jane Venohr, MA. of Policy Studies Inc. of Denver Colorado for the Arizona Supreme Court Administrative Office of the Courts on June 29th, 1995 titled "Economic Basis for Updated Child Support Schedule" studied the cost related to raising children and defined the portion of net and gross income spent by parents on children based on different family (incomes of both parents) incomes. Each parent is expected to contribute this portion of their income for the support of the children, so the children can continue to enjoy the same standard of living they would have enjoyed, had the parents continued to live together. Data such as this is the economic basis of Child Support Guidelines used by more than 30 states for defining their Child Support Awards.

The values in TABLE 1 were defined by converting the monthly child support awards defined in this report to a percentage of each parents gross income to allow for an easy comparison to Wisconsin's child support awards since these are expressed as a percentage of a parent's gross income.

Table 1 - PERCENTAGE OF A FAMILY'S GROSS INCOME SPENT ON CHILDREN BASED ON NUMBER OF CHILDREN.
Combined annual gross
income of both parents 		....1.... ....2.... ....3.... ....4.... ....5....

$15,000

19.6%

29.6%

$20,000

19.2%

28.3%

33.4%

36.9%

40.0%

$30,000

18.5%

26.8%

31.6%

34.9%

37.9%

$40,000

16.7%

24.5%

28.8%

31.9%

34.5%

$50,000

15.4%

22.3%

26.2%

28.9%

31.4%

$60,000

13.9%

20.1%

23.5%

26.0%

28.2%

$70,000

13.2%

19.1%

22.3%

24.7%

26.7%

$80,000

12.6%

18.2%

21.3%

23.5%

25.5%

$90,000

12.2%

17.6%

20.6%

22.8%

24.7%

$100,000

11.5%

17.1%

20.0%

22.2%

24.0%

$120,000

11.2%

16.2%

19.0%

21.0%

22.8%

$150,000

10.6%

15.3%

18.0%

20.0%

21.6%

Wisconsin's DWD 40 Standard
(all incomes)

17.0%

25.0%

29.0%

31.0%

34.0%



 

















































Table 2 - The monthly amounts "presumed to be correct" for raising ONE CHILD
as defined by CHILD SUPPORT GUIDELINES for different states. (as of 19970
Combined Family
Gross Income 		.....WI**..... ..... VA*.... .....MI*..... ..... IL#.....

$ 1,000/month

$170

$196

$ 230

$ 180

$ 2,000/month

$ 340

$ 338

$ 360

$ 310

$ 3,000/month

$ 510

$ 445

$ 470

$ 440

$ 5,000/month

$ 850

$ 666

$ 650

$ 680

$10,000/month

$ 1,700

$ 1,014

$ 1,030

$ 1,310

$20,000/month

$ 3,400

$ 1,324

$ 1,620

$ 2,490

** uses flat percentage of gross income
* uses "income shares model" which is used by more than 30 states for up to $10,000/mo.
# flat percentage of net income

Links to detailed report:  1999 Arizona review    2000 Virginia report on cost of raising children    Indiana guidelines and schedule

Why does it costs so much more to raise a child for a
HIGHER INCOME FAMILY in Wisconsin than in other states?


The assumption, of Wisconsin's DWD 40 Child Support Standard, that all families spend the same percentage of their gross income for raising a child, regardless of the families income, is shown to be flawed by this data. The application of the DWD 40 standard to above average income families will result in much higher awards than awards in other states, and what this economic data indicates is normally required to care for the children in intact families.

It requires one parent to pay a child support award which greatly exceed this parent's share of the realistic cost of raising children, allows the other parent to escape their obligation to contribute an equal percentage of their income to support of the children and violates the legislative intent as defined in Wis Stat. 49.90(1m) and 765.001(2) &(3). 

This may be perceived as punitive and/or maintenance in disguise and results in increasing the level of conflict between parents which in turn may hurt the very children this support standard is supposed to help.

LAST UPDATED: 7/26/01