Apr 13, 2026
Even after the applicable credits and exemptions, the average cost to raise a child up to age 18 has now surged over $300,000 for American households, making the decision to start a family more daunting than ever when finances are top of mind (which, in the present economy, they of course are).
This year marks the first time in more than a decade of tracking that expenses are the primary reason would-be parents in the U.S. are pressing pause on having kids — and, it's no wonder, given the latest numbers from LendingTree.
Advertisement
The loan marketplace released a new batch of research this week outlining how child-related spending has spiked in recent years, examining the price of things like day care, clothing, health insurance, food, transportation and rent, measured as the difference in average monthly rates between homes with and without children, nationwide.
The findings, unfortunately, don't instill much confidence in those hoping to one day expand their brood.
Where are parents getting hit the hardest?
The headline figure from the report is an average of $303,418, or around $16,857 per year (1) to bring up a child on American soil, which is 1.9% higher than just a year ago. And, this is actually modest compared to similar reports from other parties that cite numbers further over the $300K mark (2).
Guardians in certain parts of the country have it especially tough, with the year-over-year change in child-rearing costs soaring well above the national average to as high as 27.4% in some states (Nebraska being the worst, followed by Montana, Maine, Wisconsin and Utah), topping out at as much as $412,661 per year. Hawaii is currently the most expensive state in which to start a family, followed by Alaska, Maryland, California and New Jersey.
Even factoring in those locales on the lower end of the spectrum — such as New Hampshire, where taking care of a kid through to age 18 sits at about $201,963 — the average parent in the U.S. is devoting a devastating 21.9% of their total income to bringing a child into the world during that child's first few years of life, according to LendingTree.
One major child-rearing expenditure is bucking the trend
Oddly enough, it is actually during those early years where expenses are generally lessening, albeit slightly: LendingTree reports spending on a child up to the age of five — the priciest era of a child's life — is actually down 0.3% from last year, largely due to an approximately 3.2% dip in infant care fees.
The areas where parents are dishing out far more lately, though, outweigh these welcome-but-marginal cost reductions.
Advertisement
Per the analysis, which is based largely on federal government data from 2024 alongside some more recent stats from other agencies, the price of children's apparel has escalated by 26.7% in one year's time, while rent for American families is a staggering 48.9% higher than a year prior, on average.
Looking back further is even more disheartening, with a 27.8% jump in the overall cost of a child since the same study was conducted in 2023, when the rising cost of living was already at a crisis level and some residents were forced to trial some major life changes (3) to cope.
How to try and catch up
For parents grappling with balancing their finances right now, or worried about their plans for retirement in the future, the experts behind the research recommend the standard best practices of investing as much into savings as soon as possible — if you've got $8,000 saved, you're ahead median (4) — along with gradually but consistently chipping away at debt, and lowering the proportion of your debt that is high-interest, if possible.
Sourcing out and utilizing any and all financial incentives available to you (5) as someone with a child or children, such as the new Trump accounts, as well as focusing on cutting down on unnecessary costs where you can (the newest high-tech, name-brand stroller may not be as much of a necessity as you think).
Also, explore alternative options for things like child care, which becomes less exorbitant when split with other families via nanny shares or brought in-house — and, can be brought down to $0 if you find that the cost of hiring someone else either outweighs one parent's take-home pay or your household can afford the switch (6).
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
LendingTree (1); Northwestern Mutual (2); Yahoo Finance (3); Bankrate (4); TurboTax (5); SmartAsset (6)
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- This 20-year-old lotto winner refused $1M in cash and chose $1,000/week for life. Now she’s getting slammed for it. Which option would you pick?
- Warren Buffett used these 8 repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Becky Robertson is a senior staff reporter with Moneywise and a lifelong writer. Along with years in the journalism industry at outlets such as blogTO and Quill & Quire, she's participated in writing residencies at the Banff Centre for Arts & Creativity and Writing Workshops Paris. With 33 countries visited and counting, she finds travel to be one of her greatest inspirations.
