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The average cost of raising a child in the U.S. as of 2026 was approximately $16,857 per year. That means the typical expense of nurturing a child to age 18 would be $303,418.
Children bring a lot of light into a family’s life, but they also bring a lot of expenses. It’s wise to be prepared for this financial commitment, which can include food, clothing, child care, summer camps, medical bills, and more. Here, take a closer look at the average cost of raising a child per year so you can plan your budget and save accordingly.
Key Points
• Raising a child to age 18 currently costs an average of $303,418.
• Housing, food, child care/education, and transportation are the top four expenses, constituting the bulk of costs.
• The annual cost to raise a child averages $16,857 as of 2026.
• Child care costs vary significantly by state, with Mississippi being the least expensive and Massachusetts the costliest.
• Strategic budgeting and cost-saving measures can help manage the financial burden of raising a child.
What Is the US Average Cost of Raising a Child?
On average, the cost of raising a child is $16,857 per year as of 2026.
For more context on child-raising costs, take a look at the following table.
|
Average Cost of Raising a Child to 18 Per Year |
|
|---|---|
| Cost category | Average percent of spending |
| Housing | 30% |
| Child care/Education | 18%-20% |
| Food | 15% |
| Transportation | 15% |
| Health care | 10% |
| Clothing | 5% |
| Miscellaneous | 5% |
Which State Has the Lowest Child Care Costs?
Where someone lives can impact how much it costs to raise a child. Mississippi residents have the lowest average child care costs, ranging between $4,884 and $6,492 per year. At the other end of the spectrum is Massachusetts. Residents there spend more than twice as much as those in Mississippi do in terms of child rearing. Their average costs come in at a steep $14,439-$27,067 per year.
How Much Does It Cost to Raise a Child?
The average cost of raising a child each year was estimated at $16,857 as of 2026, which leads to an overall cost of $303,418 to raise a child through the age of 18. When that’s adjusted for predicted inflation, one calculator shows the figure ballooning to more than $516,500. None of these numbers account for the cost of a college education, which many parents like to budget for far in advance.
For more insight into how much it costs to raise a child, there are calculators online that can help parents better estimate their spending based on their particular family needs. You may also be curious to learn how to create a household budget so you can manage your money carefully.
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Are You Able to Afford a Child?
Whether or not you can afford a child depends on your particular financial circumstances, as well as factors such as child care needs and the cost of living in your area.
There is no one salary figure that means someone is able to afford a child. It’s important to research how having a child will impact housing, food, and health care costs, and how much of your disposable income will go toward clothing, equipment, child care, education, and even toys. This way, you’ll have a clear idea of how having a child will impact your budget so you can plan appropriately.
Recommended: Average Salary in the U.S.
How to Budget for a Baby
Speaking of budgets, these are some expenses parents need to budget for when they plan to have a baby join their family. They can use a budgeting app, spreadsheet, or even good old-fashioned pen and paper to create a new budget.
Examples of baby expenses that should go in a budget include:
• Food
• Medical care
• Housing
• Child care
• Education
• Clothing
• Furniture and equipment (high chair, car seat)
• Toys
• Recreational activities
• Care items (diapers, baby wipes, etc.)
Once parents know what their total expenses are, they can subtract that amount from their take-home income to determine how much money is left for fun (such as dinners out and vacations) and savings goals. Some parents even like to create an investment plan for their newborn.
Recommended: Top Budgeting Tips for Single Parents
How to Reduce the Costs of Raising a Child
Because raising a child can cost a pretty penny, it can be helpful to think strategically about how to save money while raising kids. Here are some tips that can make it possible to spend less as a parent:
• Buy secondhand clothes. No hand-me-downs at the ready? Shopping secondhand can be a great way to save money on baby and kids’ clothes. Most children grow out of their clothes very quickly, so new or lightly worn clothes are always available at thrift stores.
• Spend less on housing. Even if you can afford to buy a larger house, you may want to consider living below your means. Housing is a major ongoing expense for any family, so saving here can really make an impact.
• Buy generic. When it comes to things such as formula and diapers, lower-cost generics can get the job done just as well as fancy name brands.
• Head to the library. Looking to keep kids entertained? Don’t forget about the local library. Alongside books, many libraries offer free access to online shows, story time, and tons of events that can keep little ones active. So cancel those expensive streaming subscriptions and skip the overpriced petting zoos for now.
Example List of Expenses for Raising a Child
To help parents plan better, below are some common expenses that come with raising a child and the percentage of overall child-rearing costs that goes toward each expense:
• Child care and education: 18%-20%
• Food: 15%
• Transportation: 15%
• Health care: 10%
• Clothing: 5%
• Miscellaneous: 5%
Recommended: 52 Week Savings Challenge
The Takeaway
The average cost of raising a child in the U.S. is about $17,256 per year. Knowing this can help families create a budget that makes it easier to reach their savings goals while raising young kids. The biggest child-related expense is for housing, followed by child care and education and food. Developing a budget as a parent and tracking spending can be wise moves.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
FAQ
How much does it cost to raise a child monthly?
On average, it costs $16,857 per year to raise a child as of 2026. This breaks down to average monthly spending of almost $1,405.
How much does it cost to raise a child to 18 in California?
California is a notoriously expensive state to live in, and that extends to child-rearing costs. It costs an average of $33,692 each year to raise a child in California, which comes out to $606,456 over the course of 18 years.
What is the minimum salary to raise a child?
There is no one minimum salary that parents need to earn in order to afford a child. How much it costs to raise a child depends on many different factors, such as location, child care needs, education preferences, health conditions, and more.
What is the cheapest state to raise a child?
As of 2026, Mississippi is the most affordable state for raising a child. Annual costs for infant day care and food in Mississippi are well below national averages.
At what age are kids the most expensive?
Children are generally the most expensive until after age five. This is largely driven by the cost of infant day care, which can add an average of $17,264 per year to child-rearing expenses.
About the author
Jacqueline DeMarco
Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.
Photo credit: iStock/Poike
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