Parents are having a tougher time affording to raise children nowadays, according to a new study released this week by LendingTree.
Researchers examined the annual costs of raising a small child, which have jumped over 35% since LendingTree’s last look at the issue.
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More specifically, the “bare-bones cost” of raising a small child in the U.S. was broken down as follows:
| Category | Cost (2023) | Cost (2025) | Difference ($) | Difference (%) |
|---|---|---|---|---|
| Rent | $1,104 | $1,128 | $24 | 2.2% |
| Food | $3,254 | $4,216 | $962 | 29.6% |
| Day Care | $11,752 | $17,836 | $6,084 | 51.8% |
| Girls Apparel | $273 | $247 | -$26 | -9.5% |
| Transportation | $6,010 | $4,383 | -$1,627 | -27.1% |
| Health Insurance Premiums | $2,888 | $3,609 | $721 | 25.0% |
| Value of Federal Tax Credit | -$3,600 | -$2,000 | $1,600 | -44.4% |
| Total Annual Cost | $21,681 | $29,419 | $7,738 | 35.7% |
Over the course of 18 years, these costs amount to just shy of $300,000, the study finds. That’s a jump of over 25% from the site’s 2023 report.
“No one should be surprised that costs have risen in recent years, but the type of growth we’ve seen in child care costs is on a whole other level. There are plenty of reasons for the growth, including inflation, growing labor costs and rising demand. However, whatever the reason, this growth is making an already challenging aspect of parenthood that much worse.”
LendingTree Chief Consumer Finance Analyst Matt Schulz
But from state to state, this figure varies widely.
For example, the annual cost of child-rearing in Hawaii is over $36,000 — the highest in the country.
On the other end of the spectrum, data shows that the annual cost is only $16,490 in Mississippi, which saw the lowest figure in the ranking.
In the Sunshine State specifically, LendingTree pegged that number at $23,154, which was fairly middle-of-the-road (26th highest) when compared to the national statistics.
When it comes to raising a child to adulthood, though, LendingTree experts said that parents in Florida can expect to pay out around $254,031.
| Rank | State | Added 18-Year Costs |
|---|---|---|
| 1 | Hawaii | $362,891 |
| 2 | North Dakota | $325,158 |
| 3 | Washington | $318,714 |
| 4 | Maryland | $310,040 |
| 5 | Alaska | $295,698 |
| 6 | Wyoming | $292,741 |
| 7 | Connecticut | $287,638 |
| 8 | California | $286,951 |
| 9 | New Hampshire | $285,834 |
| 10 | Massachusetts | $282,007 |
| 11 | New Jersey | $279,862 |
| 12 | Minnesota | $276,361 |
| 13 | New York | $273,294 |
| 14 | Virginia | $266,827 |
| 15 | Colorado | $266,147 |
| 16 | Vermont | $264,771 |
| 17 | Idaho | $260,942 |
| 18 | Arizona | $255,852 |
| 19 | Florida | $254,031 |
| 20 | Tennessee | $252,669 |
| 21 | Rhode Island | $250,851 |
| 22 | Louisiana | $250,395 |
| 23 | Missouri | $249,827 |
| 24 | Indiana | $249,580 |
| 25 | Nebraska | $247,772 |
| 26 | Utah | $246,096 |
| 27 | Nevada | $245,822 |
| 28 | Kansas | $245,581 |
| 29 | Maine | $241,618 |
| 30 | Montana | $241,452 |
| 31 | Oklahoma | $241,269 |
| 32 | Oregon | $240,086 |
| 33 | South Dakota | $238,318 |
| 34 | New Mexico | $234,483 |
| 35 | Iowa | $234,414 |
| 36 | Delaware | $233,537 |
| 37 | Texas | $232,690 |
| 38 | Pennsylvania | $230,581 |
| 39 | Michigan | $229,187 |
| 40 | West Virginia | $227,406 |
| 41 | Illinois | $225,325 |
| 42 | Ohio | $220,785 |
| 43 | Arkansas | $220,259 |
| 44 | Kentucky | $218,777 |
| 45 | Wisconsin | $218,304 |
| 46 | North Carolina | $215,461 |
| 47 | Alabama | $207,637 |
| 48 | Georgia | $201,058 |
| 49 | South Carolina | $200,958 |
| 50 | Washington, D.C. | $194,108 |
| 51 | Mississippi | $190,402 |
Among these states, Florida saw the 12th-biggest jump in costs at 26.8%.
With an average household income of $118,620, this means that the typical Florida family is spending around 19.6% of its income to raise a child each year, researchers said.
“Most Americans are on a budget and don’t have a ton of wiggle room from month to month,” Schulz said. “When a big cost like child care shoots up by 40%-plus, it can be a real crisis. That extra money has to come from somewhere, so it forces families to make some difficult decisions.”
But it’s not all doom and gloom. Schulz provides the following tips to cut costs in your household.
- Prioritize saving. “It can be hard to save when you’re a young parent and child care is crazy expensive,” he says. “It’s so important, though. Even if you’re only putting a few dollars per paycheck in a high-yield savings account, it will add up over time and give you a much-needed cushion when the next unexpected expense happens. And as every parent knows, they will happen.”
- Don’t be afraid to seek help. “If you’re lucky enough to have a relative or trusted friend interested in helping with child care, you should seriously consider it,” he says. “It’s a huge advantage. If you don’t, know that there are plenty of organizations whose goal is to help struggling families. Googling ‘financial help for parents in my area’ can be a good place to start.”
- Remember, cheaper isn’t always better. “As much as you want to keep costs down, that isn’t the most important consideration when finding child care,” he says. “Putting your child in a place where they’ll be safe and nurtured is paramount. Finding that place may cost a little bit more, but the peace of mind that comes with that will be invaluable.”