In many countries around the world, raising children is not cheap for a family, and the United States is no exception. This is especially true for Chinese families who aspire for their children to succeed, as the investment in the child’s upbringing can be significant. The cost of raising children varies greatly across different cities in the United States, with annual expenses potentially differing by thousands of dollars.
After experiencing the highest inflation in 40 years, facing expenses for essentials such as food, housing, and healthcare, being a parent in the United States has never been as expensive as it is today.
So, how much does it cost to raise a child in 2024? And how does this “price tag” vary depending on where you live?
To answer these questions, Creditnews Research has analyzed the cost of raising children in the 100 most populous metropolitan areas in the United States. In each metropolitan area, the study examined the “cost of living” for dual-income families with and without children, and then assessed how much these families need to earn to make ends meet.
As expected, the actual cost of raising children in the United States largely depends on where you reside.
In the 100 most populous metropolitan areas in the United States, the average annual cost of raising a child is $22,989, with the total cost of raising a child to 18 years old averaging $413,810. To meet basic living needs, dual-income families must collectively earn $64,229 per year (without children). This figure jumps to $91,608 for families with one child, $114,898 for families with two children, and $133,197 for families with three children.
The cost of raising a child includes childcare, food, housing, healthcare, transportation, and other necessary expenses.
This study reveals that the cities with the highest childcare costs are also places where housing costs are the highest, with housing being the largest expense in a typical family budget. Among the top 10 most expensive cities to raise a child, five are located in California.
Among the top 10 most affordable cities to raise a child, four are also among the top 10 most affordable cities for middle-class families to buy homes.
The most expensive city in the country to raise a child is San Francisco, California, with an average annual cost of $37,340 to raise a child, meaning parents in San Francisco would spend $672,120 to raise a child until they turn 18.
Following closely behind San Francisco is another California city, San Jose, with an average annual cost of $37,305 to raise a child, totaling $671,490. Interestingly, for households without children, San Francisco has a lower income threshold compared to San Jose, while the reverse is true for families with two or more children.
Here are the top 10 most expensive cities in the U.S. to raise children and their childcare costs:
– Average annual cost to raise a child: $37,340
– Total cost to raise a child to 18 years old: $672,120
– Average annual cost to raise a child: $37,305
– Total cost to raise a child to 18 years old: $671,490
– Average annual cost to raise a child: $35,236
– Total cost to raise a child to 18 years old: $634,242
– Average annual cost to raise a child: $33,267
– Total cost to raise a child to 18 years old: $598,800
– Average annual cost to raise a child: $32,763
– Total cost to raise a child to 18 years old: $589,728
– Average annual cost to raise a child: $32,115
– Total cost to raise a child to 18 years old: $578,070
– Average annual cost to raise a child: $31,615
– Total cost to raise a child to 18 years old: $569,064
– Average annual cost to raise a child: $31,459
– Total cost to raise a child to 18 years old: $566,268
– Average annual cost to raise a child: $31,122
– Total cost to raise a child to 18 years old: $560,190
– Average annual cost to raise a child: $30,976
– Total cost to raise a child to 18 years old: $557,562