A new study breaks down what families are actually spending
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A recent estimate from LendingTree found that raising a child now costs nearly $300,000 over 18 years.
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Annual expenses related to child care have jumped significantly since 2023.
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Families are spending a larger share of their income on basic child-related costs.
If it feels like everything is getting more expensive lately, raising a child is no exception.
A new study from LendingTree takes a close look at just how much families are spending and the numbers are eye-opening. According to the report, the cost of raising a child from birth to age 18 now totals $297,674 a sharp increase from previous estimates.
On a yearly basis, that breaks down to about $29,419 per child. And its not just the total thats rising the pace of increase is notable, too. Compared to 2023, annual costs have jumped by more than a third.
The study highlights how everyday essentials from housing and food to child care and health insurance continue to put pressure on family budgets. Its a reminder that the financial side of parenting is evolving quickly, especially as inflation and other economic factors come into play.
How the study calculated the costs
To estimate the cost of raising a child, LendingTree analyzed a wide range of typical household expenses tied to parenting. These include child care, rent, transportation, food, clothing, and health insurance premiums.
The researchers pulled data from multiple sources, including federal datasets and industry benchmarks, to build a comprehensive picture of what families are spending. They also factored in tax credits and exemptions, subtracting those from the overall cost to reflect a more realistic out-of-pocket total.
Importantly, the study looks at costs over time and across different states, showing how geography can influence expenses. By combining national averages with state-level variations, the analysis aims to capture both the big picture and the local differences families may experience.
What the findings show
The biggest takeaway is simple: raising a child is getting more expensive and quickly. The total 18-year cost has risen by more than 25% since the last report, while annual expenses are up 35.7%.
Costs also vary widely depending on where you live. In some states, families can expect to spend well over $300,000 over 18 years (like Hawaii, Alaska, and Maryland), while in others, the total comes in under $200,000 (New Hampshire, the District of Columbia, and South Carolina).
Hawaii, Maryland, and Massachusetts are the three most expensive states to raise a child, with annual costs in the first five years exceeding an average of $40,000 in Hawaii. On the other end of the spectrum, Mississippi, Alabama, and South Dakota are the least expensive states to raise a child. Annual costs in Mississippi didnt reach $18,000 per year.
Another notable finding: families are dedicating a larger share of their income to raising children. On average, about 22.6% of household income goes toward basic child-related expenses, up from 19% in the previous study.
Taken together, the results paint a detailed picture of how the financial demands of parenting are shifting and how those changes may impact household budgets in the years ahead.
Posted: 2026-04-08 17:32:32
