Apr 15, 2026
The experience of raising a child might be priceless, but the costs are not. According to a new report by LendingTree, the average cost to raise a child in the United States now exceeds $300,000 (1) for the first time since the company began tracking costs. After accounting for tax exemptions and credits, the 18-year price tag rose 1.9% year over year to a staggering $303,418.
The single biggest expense? Child care. The average cost of infant day care runs $17,264 per year — and that's actually down 3.2% from 2025. Annual costs for the first five years of a child's life dipped slightly overall, but the long-term costs continue to rise.
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For most families, this increase makes an already difficult to balance budget even worse.
What does this mean for parents?
LendingTree's analysis is based on a married, two-earner household with one child earning the U.S. median family income of $99,999. At that income level, infant day care alone eats up roughly 17% of take-home pay. Add a second child, and the situation can quickly spiral.
And daycare is just one line item. LendingTree's analysis also factors in food ($4,208 annually), transportation ($4,422), health insurance premiums ($3,638) and clothing ($313) for a child's first five years. Stack those on top of daycare, and the average family is spending nearly $29,325 per year on the basics to raise a child under five.
Federal guidelines suggest child care is considered "affordable" when it accounts for no more than 7% of household income (2), meaning a family would need to earn more than $200,000 a year for today's average daycare costs to clear that bar. The typical American family doesn't earn anywhere close to that.
Meanwhile, 35.9 million Americans (3) lived below the poverty line in 2024. Add in single parents, single-earner households or those with multiple children, and the costs quickly become untenable for many American families.
Broader inflation isn't helping. The Consumer Price Index rose 3.3% year over year (4) in March 2026, with energy costs, including gas and electricity, jumping 12.5%. Every dollar that goes toward gas or groceries is one less dollar available for diapers, daycare or a college fund.
The longer-term picture is just as sobering. Since LendingTree began tracking these costs in 2023, the total 18-year price tag has risen nearly 28%. The annual cost for a child's first five years has jumped 35% in that same window. Standard inflation, meanwhile, has increased an estimated 8% in that same time period.
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How can parents manage the costs of raising a child?
While policy changes may eventually help parents better manage the costs of raising children, there are a few ways parents can reduce the costs today.
Consider alternative child care solutions
Full-time daycare isn't the only option for infant care. Nanny shares—where two or more families split the cost of a single caregiver—can dramatically cut costs while providing quality care. Having grandparents or trusted friends cover one or two days a week can also add up to real sayings. Part time care may also be an option, depending on your work situation.
Go for used over new
Kids grow fast. That $20 outfit might look cute, but there's a good chance it will only fit for a few months. Consignment shops, Facebook Marketplace and neighborhood swap groups are goldmines for gently used clothing, gear, and toys often at a fraction of retail prices. Your kid won't know the difference, but your wallet will.
Hunt for deals on big stuff
For items where safety matters—like car seats—many retailers offer trade in programs where you can swap an outgrown or outdated seat for a discount on a new model. Shopping seasonal sales for the next size up, stacking coupons, and buying in bulk can also help.
Tap into local resources for child care
Depending on your income, you might qualify for financial assistance for child care through federal programs like Child Care Development Fund (CCDF) (5). Some states offer additional programs, so it's worth researching what is available in your area. Military members may also qualify for assistance (6) with child care.
None of these steps will make raising kids cheap, but every dollar saved is one you can put toward something that matters, whether that's a college fund, retirement or simply keeping the lights on.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
LendingTree (1); Federal Register (2); U.S. Census Bureau (3); CNBC (4); Bipartisan Policy Center (5); Military Child Care (6)
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Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
