How much does it cost to raise a child in America?

Having kids can be one of the most rewarding experiences life has to offer, but it also comes with significant financial (and other) responsibilities. Understanding the costs involved can help parents and prospective parents better prepare for this important journey.

In this post, we’re breaking down what it costs to raise kids, focusing on the biggest expenses by age, how much location plays into it, and tips on how to financially prepare.

The average overall cost of having kids

The true answer really depends on how you define “cost.” Do you include pregnancy, delivery, and other related medical costs? How about geographic location and household income? 

If you ask the Brookings Institute, which studies economies, the average middle-income family with two kids needs $310,605 to raise just one child (based on birth in 2015 to age 17 in 2032). 

Using Brookings’ example, that’s over $18,000 per year per child. But remember, this is only an average. A 2023 Lending Tree study estimated a much higher annual cost of $21,681 – not including college tuition. Saving and preparing for your child’s future is an important consideration and best when started early, even though not included in this article, so it’s easy to see how the cost can vary depending on multiple factors. 

Top 3 factors that drive the cost of raising a child

To get a somewhat more realistic idea of how much money you’ll need for child-rearing, consider some of the biggest influencers:

1. Housing. Rent, mortgage, and the cost of housing in general is the largest expense for a typical family, says Investopedia. Homeowners shelled out an average of $3,000 a month in 2023 for housing-related payments.

2. Food. Feeding a family accounts for as much as 25% of the average middle-income family with two children (estimated at $74,580 before taxes in 2022).

3. Childcare. Numbers from the U.S. Department of Labor indicate that childcare is a huge variable for families, with estimates ranging from $5,000 to $17,000 a year or more.  

The biggest expenses by age

Infancy (0-2 Years)

The first few years of a child's life can be both joyful and financially demanding. Major expenses include:

• Medical costs: Regular pediatrician visits, vaccinations, and possible urgent care or emergency room visits

• Childcare: From $5,000 to $17,000 or more, according to the U.S. Department of Labor

• Personal care: Clothing, diapers, food, and hygiene, for example

• Equipment: Cribs, strollers, car seats, and other necessary items

Early childhood (3-5 years)

As kids grow, the types of expenses change but remain substantial:

• Education: Preschool or early childhood education programs can range from $4,000 to $12,000 annually.

• Food: The cost of feeding a growing kid increases, especially if they have special dietary needs.

• Activities: Extracurricular activities, such as dance classes or sports, can add to your budget.

School age (6-12 years)

Toys and accessories get more expensive, such as electronics and even Lego sets. But there’s also things like braces, clothes, sporting equipment, and extracurriculars.

• School supplies and fees: From notebooks to field trips, school expenses can pile up. Not to mention tuition if you’re heading to private school. 

• Healthcare: Continuing medical check-ups and dental care become essential.

• Clothing and entertainment: As kids grow, so do their clothing needs and interests in hobbies.

Teenage years (13–18)

Kids might start seeming like mini adults between activities, college applications, tech devices, and getting their driver’s license.

• Education: High school fees, extracurricular activities, and preparation for college entrance exams.

• Technology: Gadgets like smartphones, laptops, and internet access become necessary.

• Driving: Car insurance, driving lessons, and possibly a vehicle add to the costs.

Ready to bring up a baby?

The cost to raise a child is a critical part for every parent and prospective parent to consider. From infancy through the teenage years, each stage comes with its own set of financial responsibilities. By preparing financially, you can focus on enjoying the precious moments and milestones of parenthood without undue stress.

Want more tips from money-savvy families? Head to the Greenlight Learning Center for helpful resources on parenting, finances, and fun.

This blog post is provided "as is" and should not be relied upon as a substitute for professional advice. Some content in this post may have been created using artificial intelligence; however, every blog post is reviewed by at least two human editors.