US Parents Spend 21.9% of Annual Income on Raising Children

The average cost of raising a child to the age of 18 in the United States has surpassed $300,000 for the first time since tracking began in 2023, according to research from LendingTree.

The report, updated April 6, 2026, found that the average total expenditure to bring up a child on American soil is now $303,418. This figure represents a 1.9% increase compared to the previous year.

Broken down annually, the research indicates that parents spend an average of $16,857 per year on child-related expenses.

These expenditures significantly impact household budgets, with U.S. Parents spending an average of 21.9% of their annual income on costs associated with raising their children.

The financial burden varies significantly by state. Parents in Hawaii face the highest relative costs in the nation, projected to spend 27.4% of their annual income on raising a small child. Nebraska and Indiana follow as the next most expensive states, with parents there spending 23.5% and 23.2% of their income, respectively.

While overall costs have risen, the report noted a decline in expenditures during the first five years of a child’s life. This decrease was primarily driven by a small drop in day care costs.

The rising price tag of parenthood is influencing demographic trends. According to reporting from April 13, 2026, financial expenses have become the primary reason potential parents in the U.S. Are choosing to delay or forgo having children. This marks the first time in more than a decade of tracking that financial considerations have been the leading deterrent.

To arrive at these findings, LendingTree analyzed a combination of child-specific expenses and general household costs that are affected by the presence of a child.

The methodology included full child care costs as a direct additional expense. For broader household costs, such as rent, the researchers calculated the difference in average monthly rates between households with children and those without to determine the true financial impact of adding a child to a home.

The research also factored in food costs and the impact of tax exemptions and credits. While the majority of the data used in the study was from 2024, the analysts utilized more recent information for national food and day care data, as well as current tax credit figures.

The study’s headline figure of $303,418 is considered a modest estimate by some standards, as other reports have cited total costs that exceed the $300,000 mark by a larger margin.

The rising costs encompass a wide range of necessities, including health insurance, clothing, transportation, food, and housing, all of which contribute to the increasing financial pressure on American households.