Across the U.S, it now costs an average of $303,418 to raise a child from birth through age 18. California is among the most expensive places in the nation to raise a child, as new data shows families are facing rapidly rising costs driven by housing, child care and insurance.
Across the U.S, it now costs an average of $303,418 to raise a child from birth through age 18, or about $16,857 per year, according to LendingTree analysis.
The estimate is based on a married, two-income household earning the national median income of $83,730, and includes major costs such as housing, food, child care, transportation and health insurance, with tax credits factored in.
California ranks as the fourth most expensive state to raise a young child, with families spending about $33,692 annually during a child’s first five years.
The state’s high costs are tied to multiple factors, including elevated housing prices, child care expenses, transportation, food and health insurance premiums.
Only Hawaii, Maryland, and Massachusetts rank higher.The 10 most expensive states, plus D.C. to raise a small child are:
By contrast, the most affordable states are largely in the South. Mississippi, Alabama and South Dakota report significantly lower annual costs, driven in part by cheaper child care and housing.The 10 least expensive states to raise a small child are:
Nationally, child care remains one of the largest financial pressures. The average annual cost for care for an infant and a 4-year-old is $28,190, based on data cited from Child Care Aware of America.
To keep those costs within the federal affordability benchmark of 7% of household income, a family would need to earn about $402,708 per year.
By comparison, the average household income for families with two children is $145,656.
The report reflects a broader national trend, with costs rising 1.9% over the past year and increasing in 39 states and the District of Columbia.
Several states, including Nebraska, Montana, Maine and Wisconsin, recorded double-digit increases.
There was a slight decline in costs during a child’s first five years, which edged down 0.3% to $29,325, largely due to a modest drop in child care prices.
Despite that small decrease, the overall cost of raising a child continues to rise across most of the country, with California remaining among the most expensive places for families.
