Here’s Exactly How Much It Costs To Raise a Child in America
Raising kids has never been cheap — but today, it’s more expensive than ever. Between inflation, regional cost differences, and the rising price of essentials like food and child care, families across the country are facing a growing financial burden. While the total cost varies depending on where you live, the numbers paint a clear picture: raising a child in the U.S. requires serious planning — and often, serious sacrifice.
So, What’s the Damage?
On average, raising a single child from birth to age 18 now costs about $389,000. That breaks down to over $21,000 per year, a 19% jump from just a few years ago. And that doesn’t even include college. These estimates reflect the national average, but they don’t tell the full story — because where you live makes a huge difference.
Location Matters (A Lot)
The cost of raising a child varies wildly depending on your state. In Massachusetts, it can run close to $36,000 per year, making it the most expensive state to raise a kid. Meanwhile, Mississippi families average less than half that cost. Over 18 years, that’s a difference of up to $439,000. From housing and child care to food and health care, local economies shape just how far your dollars stretch.
What’s Driving the Price Hike?
Several major expenses make up the bulk of child-rearing costs:
Housing: The biggest piece of the pie, taking up around 29%
Food: Around 18% and climbing steadily
Child care & education: About 16%, often second only to housing
Transportation, health care, clothing, and miscellaneous extras (like sports, camps, and birthdays) round out the rest.
Add inflation to the mix, and it’s easy to see why families feel the squeeze.
… And the Price Keeps Climbing
Child-rearing costs are rising faster than many incomes. Compared to 2016, families today spend nearly 20% more per child each year. Essentials like groceries, gas, rent, and child care have all surged, while paychecks haven’t always kept up. For many families, this means adjusting lifestyles, tightening budgets, and finding creative ways to make ends meet.
Tips for Navigating the Cost
While you can’t control national trends, you can take steps to manage costs:
Explore state-level tax credits and childcare subsidies
Consider lower-cost states if relocation is an option
Set up savings accounts early — even small contributions add up
Buy secondhand, meal plan, and seek out shared or employer-supported child care options
Always budget for unexpected extras — because surprises are part of parenting