It Now Costs Over $300,000 to Raise a Child in America

I remember standing in the baby aisle before my first child was born, staring at the price of diapers and wondering how many I’d need per day, per week, per month. The math could easily balloon. Then came daycare, pediatrician visits, clothes they outgrew in weeks, and eventually sports, activities, and school expenses. It never ends. And somewhere along the way, the costs stopped being surprising. Every expense, every penny, just became part of parenting.

New data from LendingTree gives context to all of our spending. The financial company just released numbers on just how expensive raising kids has become. And yes, the numbers are eye-opening, maybe even triggering for some, but on some level, we already know.

According to LendingTree’s analysis, the total cost of raising a child to age 18 is now $303,418, and that’s after factoring in tax exemptions and credits. That breaks down to $16,857 per year, which is a 1.9% increase from last year. While that increase may seem modest, it adds up over nearly two decades. And for many families, the financial pressure starts early.

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The First Five Years Still Hit the Hardest

Parents of babies and toddlers already know that the early years can be financially intense, and LendingTree’s data reinforces that reality. The average annual cost of raising a child during the first five years is $29,325, a slight dip from last year’s $29,419. (That small decrease was largely driven by a modest decline in daycare costs.)

That dip is tiny in the grand scheme of things. Nearly $30,000 a year during the early years remains a heavy lift for many families, especially for those juggling childcare, housing, and rising everyday expenses.

Another finding from the LendingTree study is how dramatically costs vary depending on where families live. In Hawaii, the most expensive state, parents spend about $40,342 annually during the first five years of a child’s life. Maryland and Massachusetts follow closely behind, with costs also well above the national average.

At the other end of the spectrum, families in Mississippi, Alabama, and South Dakota face significantly lower costs — largely because childcare expenses in those states tend to be more affordable. In each of these states, infant daycare costs fall below $10,000 annually, which helps bring down the overall cost of raising a young child.

Meanwhile, 39 states and Washington, D.C. saw increases in the annual cost of raising a young child, and 14 states experienced increases of at least 10%. Some states saw especially sharp increases. Nebraska, Montana, Maine, and Wisconsin all experienced year-over-year jumps of more than 20%, signaling that parenting expenses are rising quickly in certain areas.

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Some Families Will Spend More Than $400,000

While the national average now sits above $300,000, families in some states face steeper costs overall. 

LendingTree projects that families in six states will spend more than $300,000 raising a child, with Hawaii topping the list at $412,661. Alaska and Maryland also rank among the most expensive states over the full 18-year period.

Even in the most affordable locations, the price tag remains substantial. The lowest projected totals — in New Hampshire, Washington, D.C., and South Carolina — still hover around $200,000 to raise a child to adulthood.

Beyond the total cost, LendingTree also examined how much of families’ incomes go toward raising young children. On average, families spend 21.9% of their income on basic expenses for a small child. While that’s slightly lower than last year’s 22.6%, it still represents a significant portion of household budgets.

The share varies widely depending on where families live. In Washington, D.C., families spend about 13.9% of their income on these expenses, while in Hawaii, that number climbs to 27.4% — more than a quarter of household income.

For many families, these numbers simply confirm what they’re already experiencing. Raising kids has always come with financial challenges, but today’s costs — from childcare to housing to everyday necessities — continue to climb.

And while every family’s situation is different, the takeaway from LendingTree’s analysis is clear: raising kids is a significant financial commitment, and for many parents, planning ahead and understanding the costs can make a meaningful difference.