Raising a child requires significant expenses, but just how costly can it get? In the United States, there are huge differences in the cost of raising children between various cities: some parents may spend around $400,000 on average from their child’s birth until the age of 18, while in some cities, this cost can be halved.
For years, the United States Department of Agriculture (USDA) has been releasing an annual report calculating the average cost of raising a child to adulthood. However, this report has not been updated since 2015.
Based on the data at that time, a married couple with moderate income would need an average total cost of $233,610 to raise a child until the age of 18 (excluding college expenses). Credit evaluation agency Credit Karma believes that considering the impact of inflation, these parents would now need to spend around $318,949 to raise a child.
However, in some major cities, the cost of parenting is much higher.
The expenses of raising a child mainly include housing, food, childcare and education, transportation, healthcare, clothing, and daily living expenses, with childcare often being the most expensive.
A recent study by financial services company LendingTree found that Hawaii is the most expensive place in the United States to raise a child, with an annual average cost of $36,472 for a toddler. If we base the total spending over 18 years on this figure, it would amount to approximately $656,000. However, the company only calculated 5 years of childcare expenses in the 18-year total, resulting in a comprehensive expense of around $363,000.
Following Hawaii, Massachusetts comes next with an annual average cost of $33,004 for raising a toddler, followed by Washington at $32,418, Maryland at $31,601, and California with an average annual expenditure of $30,059.
LendingTree also identified the most affordable regions in the US for childcare. Mississippi is the cheapest place in the US to raise a toddler, with an average annual cost of $16,490, with childcare costs only a third of those in Hawaii.
Next is South Carolina with an average annual childcare cost of $17,699, followed by Alabama at $17,870, Arkansas at $18,642, and South Dakota at $18,918.
Personal finance website WalletHub found that the biggest expense in raising children is childcare service costs. Married parents may need to allocate over 13% of their income towards childcare, while single parents’ expenses could amount to over 51% of their income.
Data from childcare software company illumine shows that childcare costs in California are among the highest in the US, mainly influenced by the high cost of living and rising operational costs of childcare centers. In certified childcare centers, the annual cost of infant care is approximately $16,000, while care for preschool-age children ranges between $12,000 and $14,000 per year.
illumine categorizes childcare facilities for infants into several options:
– Infant care: Infant care typically incurs higher costs, ranging from $800 to $2,500 per month depending on the area and type of care. Cities with the highest costs include San Francisco, Los Angeles, and San Diego.
– Childcare centers: Childcare centers provide care for children aged 0 to 5. Costs vary significantly based on location and facility quality, averaging around $1,200 to $2,000 per month.
– Full-time nanny: Hiring a full-time nanny, although a more personalized childcare option, can cost an average of $3,000 to $5,000 per month. Additionally, parents may need to pay taxes and benefits for the nanny.
– Preschool: Preschools for preschool-age children, typically catering to children aged 3 to 5, have different prices for public and private schools. Monthly fees average around $700 to $1,500, with annual fees ranging from $8,400 to $18,000.
This article serves as general information and should not be construed as recommendations. Epoch Times does not provide investment, tax, legal, financial planning, real estate planning, or other personal finance advice.