How much does it cost to raise a child? Let's break it down by age

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, financial and otherwise. After all, building strong parenting skills is just as essential as budgeting for baby gear!

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 Institution, 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

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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 24% of the average middle-income family with two children (estimated at $80,610 before taxes in 2023).

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 to 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. These costs can range from $5,000 to $17,000 or more, according to the U.S. Department of Labor. "From my experience working with young families, childcare is the budget-killer no one sees coming," says Andrew Lokenauth, family finance expert and founder of BeFluentInFinance.com.

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

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

Early childhood (3 to 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. "The hidden costs that sneak up include all the random school supplies, endless activities ... and constant growth spurts requiring new clothes," says Lokenauth.

School age (6 to 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. “Medical expenses blindside many parents,” Lokenauth explains. “There's the endless stream of copays for ear infections, strep throat, and those inevitable urgent care visits when kids get hurt playing sports.”

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

Teenage years (13 to 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 raise a child?

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. And remember, you’re not alone; it really does take a village to raise a child. Lean on your support system, and don’t be afraid to ask for help when you need it.

FAQs on how much it costs to raise a child

What age are kids most expensive?

It really depends! Costs can start adding up when your kids hit their teenage years. There may be phones, sports, college prep, and possibly even a car. But don't underestimate the baby and toddler years either, especially if you're paying for childcare. Ultimately, every stage can find a way to drain your budget.

How much money should I have saved before having a baby?

There is no magic number to financially prepare for a baby, but having an emergency fund definitely helps. This can give you a little wiggle room for things like diapers, baby gear, medical bills, and maybe even help with childcare. You don't need to have it all figured out before the baby shows up, but having a little bit of a cushion to help you avoid panic might make sense.

Is it more expensive to raise a boy or a girl?

There are studies that suggest girls are slightly more expensive than boys, but it's really more about each individual child than it is about their gender. One might be on the travel soccer team or love fashion, and another could be into robotics and playing the violin. So it's very difficult to have an absolute answer on whether it's more expensive to raise a boy or a girl.

Does it cost $1 million to raise a child?

Not technically. The latest numbers put it closer to $310,000 to raise one child to age 17, not including paying for college. But if you add in other potential expenses, like private school, sports, orthodontics, random injuries, and of course, college savings, then it sure could feel like a million. The good news is that it's doable when you plan ahead and take it one step at a time.

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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.

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