PHILADELPHIA (KYW Newsradio) — It is getting more expensive to raise children, and new research finds at least 10% of parents’ income is spent on child raising.
“Child care costs have risen exponentially over the last three decades,” says Bankrate analyst Alex Gailey.
She looked at U.S. Census Bureau figures and more data and found that child care costs are outpacing inflation. “Over 1 ½ times faster than overall inflation since January of 1991.”
The most expensive state to raise a child is New Mexico, followed by Hawaii and New York. Parents are spending around 20% of their income in those states.
New Jersey ranked 33 on the list, and Pennsylvania landed at 32.
“Typical family, based in Philadelphia, would have to allocate around 15% of their income to a full-time center-based infant facility for one child.”
Gailey says parents should check to see if they qualify for child tax credits.
She also recommends getting a head start and establishing a child care fund before you have children.