How much it costs a child to raise in the US

Raising children has always been expensive, but inflation And regional price differences have made it even more difficult for families to keep track of. While no one can be controlled older riseUnderstanding where the money is going and planning ahead can make a big difference.

Jennifer Yuen, a Michigan -based mother of twins, told “Good Morning America” ​​that have demanded the expensive costs of raising two children of her family to make sacrifices and adjust their lifestyle.

“We had to be creative with our budget early on. We rely on a mix of childcare, family help and flexible work schedules to make things more manageable,” she said.

The story of Yuen is a reality for many parents who, due to the growing financial tension of raising children. Housing, food and childcare, which are already among the biggest expenses for families, continue to climb, forcing many to reconsider their budgets and financial plans in the long term.

According to an analysis of 2022 of the public policy think tank The Brookings InstitutionA family with an average income with two children could expect that he would spend around $ 310,605, adapted to the higher future inflation, to raise one child who was born in 2015 to 17 years.

More recent data suggest that the costs have continued to rise since then. A study from 2023 by Lens Estimated that the average annual costs for increasing a child have risen to $ 21,681, an increase of 19% compared to 2016, which means that the total estimated costs per child are brought to $ 389,000 for 18 years.

Where you live makes a huge difference: a 2024 Smartasset study estimates that raising a child in Massachusetts, the most expensive state, costs almost $ 36,000 a year, while in Mississippi, the cheapest state, less than half is.

For more than 18 years that is a difference of $ 439,000.

So what drives these enveloping costs and what can parents do to manage them?

Break the biggest expenses

The following percentages come from analyzes through LendingTree and SmartAxset, but it is important to note that these figures are estimates and the actual costs can vary based on location, lifestyle and economic conditions.

• Housing: 29% of the total costs -Housing is the largest financial drainage for parents, which means that almost a third of the costs of wishing children comes out. In some states, such as Hawaii and California, families are mainly hit hard: in Hawaii a child increases a household household housing costs with $ 6,188 a year, while in California it is $ 5,573.

• Childcare and Education: 16% – For working parents, childcare is often the biggest costs after housing. Jennifer Seitz, a certified instructor and director of the education of financial education at Greenlight, a family business, said “GMA” that childcare costs “have risen in recent decades, and recent data from the Department of Labor shows that the costs for childcare in some land of the average can be in some areas in some areas in some areas.” Massachusetts leads the nation with an average annual childcare costs of $ 21,503, according to the Smartasset study, followed by Hawaii ($ 19,592), Connecticut ($ 19,554) and New York ($ 17,821). In the meantime, in Mississippi childcare, only $ 4,725 per year costs from what families pay in dural states.

• Food: 18% – Food costs rise everywhere and families feel it in the supermarket. According to the US Department of Agriculture, a family of four now spends between $ 983 and $ 1,599 a month on food, depending on the food habits and location.

• Transport: 15% – From upgrading to a larger car to covering rising gas prices and insurance, transport costs still eat a large part of the budget.

• Healthcare: 9% – Even with insurance, doctor’s visits, recipes and unexpected emergency trips are quickly correct. Seitz noted: “New parents can sometimes underestimate out-of-pocket healthcare costs, because insurance does not always cover everything. Copays for unexpected medical procedures, specialist visits and higher prescribed costs can increase.”

• Miscellaneous: 7% -Sports costs, birthday parties, summer camps, after-school activities it is all true. “Families with several children can notice an exponential increase in the accounts of supermarkets, entertainment and milestone celebrations – the costs established with one child can grow considerably with more,” Seitz explained.

• Clothing: 6% – Children outgrow not only clothing- they can also destroy them. Even economical parents are constantly crossing.

How parents can manage the costs

It is easy to feel overwhelmed by these figures, but there are ways to prepare and save costs where possible. Seitz emphasized the importance of long -term planning.

“In general, parents cannot consider the big whole when budgeting for a child. By taking into account future costs, families can draw up a financial plan that adapts as their children grow and helps them prevent expensive surprises,” Seitz said.

Know the costs of your state

Where you live is important. The difference between raising a child in Massachusetts and Mississippi is almost half a million dollars past 18 years. If you have flexibility, moving to a cheaper area can mean large savings.

Take advantage of tax benefits

Many parents do not maximize child tax credits in full, dependent care FSAs a “Benefit account for taxes used to pay eligible dependent care services, such as kindergarten, summer day camp, before or after school programs and daycare center,” according to The federal flexible spending account program – and other deductions that can help compensate for the costs.

Start saving early for the university

“The sooner you start saving for the university, the more time you have to grow money,” said Seitz.

A 529 College Savings Plan This allows you to set aside tax -free for future education costs. Even small contributions are correct in the course of time.

Search for cost -saving alternatives

• Buy second -hand clothing and baby items.




• Buy meal plan and bulk.




• Consider alternatives to childcare such as Nanny shares or programs subsidized by the employer.

Seitz advises parents to optimize their expenses. “Take advantage of high-interest savings accounts, cash-back rewards and bulk purchases for essential items to further stretch your dollar,” she said.

For Yuen, meal planning has been ‘a game changer’.

“We cook bulk on Sunday, and we have significantly demolished our supermarket drawing by sticking to a strict list and avoiding impulse purchases,” she said.

Plan of unexpected expenses

In addition to the daily costs, children with unpredictable expenses come. Yuen emphasized the importance of planning for these extras.

“We only hold a separate savings account for the ‘extras’ – school trips, activities, even unexpected growth spurts. It helps us to prevent us from immersing in emergency funds,” she said.