As gas prices continue to rise and food prices are poised to go up due to more than a month of fighting in the Middle East, new data shows that the price to raise a child has also gone up. Now, the cost over 18 years has breached $300,000, according to LendingTree, an online marketplace.
LendingTree has been tracking the price to raise a child in the U.S. since 2023. For its most recent analysis, the site used data from various sources, including the U.S. Census Bureau and the Massachusetts Institute of Technology Living Wage Calculator.
“Our calculations incorporated expenses for rent, food, infant day care, apparel, transportation and health insurance premiums,” the site explained. Dependent tax benefits – whether exemptions or credits – were subtracted from expenses to create the average annual cost to raise a child by state.”
Its national average estimated cost to raise a child for 18 years came in at $303,418 after tax exemptions and credits. On an annual basis, that breaks down to $16,857. Last year’s analysis showed that the annual cost was 1.9% lower.
Here are the top five most expensive states to raise children in, according to LendingTree:
- 1.Hawaii, $412,661 over 18 years
- 2.Alaska, $365,047 over 18 years
- 3.Maryland, $326,360 over 18 years
- 4.California, $312,300 over 18 years
- 5.New Jersey, $312,295 over 18 years
Over the past year, annual costs to raise a child increased by at least 10%, including Alaska, Arizona, Illinois and Wisconsin. At the other end of the cost spectrum, annual costs are lowest in these areas, according to the analysis: New Hampshire at $201,963 over 18 years, Washington D.C. at $202,115, South Carolina at $204,213, Mississippi at $208,621 and Alabama at $212,121.
Costs for raising a child were split into categories including rent, food, infant day care, clothing, transportation and insurance premiums. Families, on average spent nearly 22% of their income on basic annual expenses to raise a small child.
While overall costs increased, those annual costs for the first five years actually went down this year. LendingTree said this slight drop (0.3%) was due to a small decrease in day care costs. Alabama, Mississippi and South Dakota, some of the states with the lowest costs to raise children, have infant day care costs under $10,000.
“However, many may not feel like celebrating,” said LendingTree. “Even with [a slowdown in costs], the overall 18-year cost of raising a child has risen 27.8% between our 2023 and 2026 reports that mostly assessed 2021 and 2024 data, and the annual cost for the first five years has increased by 35.3%.”
Audacy reported in 2024 that many parents of young children in the U.S. were spending more on childcare than housing. Just last month, The New York Times reported that childcare costs significantly outpaced inflation.
LendingTree offered some tips for parents and prospective parents who want to be financially prepared. It said to start saving as soon as possible – even before trying to start a family – to take advantage of government and workplace benefits, to look for deals and to pay down high-interest debt. President Donald Trump announced the Trump Account investment program last year, something that could help families with that first tip. However, NBC News recently reported that the president said it is “not possible” for the federal government to pay for Medicare, Medicaid and child care costs.
LendingTree’s report also comes as parents, and nonparents, across the country are facing higher prices at the pump and grocery store. These prices have been going up since Trump announced that the U.S. had joined Israel to attack Iran in late February, leading to a blockade at the Strait of Hormuz, an important transportation route for oil and fertilizer.
A ceasefire agreement between the U.S. and Iran was brokered this week, but prices are still expected to go up following weeks of blockage.
“When we look at produce, we look at anything fresh… to be honest with you, those are shipped in refrigerated trucks,” Supermarket Guru's Phil Lempert in an interview this week with KNX News. “So as a result, they use more diesel. So we’ve got that issue.”
He said we should expect to see higher prices for beef as well. Food prices could remain elevated into the fall, Lempert told KNX.
“You have to look at coupons,” he said. “You have look at those digital programs that are out there. Make sure you sign up for the frequent shopper card and also shop around.”
