It seems like the cost of almost everything has risen in recent years ... and raising a kid is certainly no exception! But how much are these adorable little mini-mes really costing us? We dug into the numbers to find out, and it turns out we’re not imagining things.
From child care and extracurriculars to basic food and care, a LendingTree study revealed that the cost of raising a small child jumped nearly 20% in just a six year time span. In 2021, the last year available, average annual cost hit $21,681, compared to $18,167 in 2016. On average, the LendingTree analysis found families spend almost a fifth of their annual income on child-related expenses.
Cost of raising a child, state-by-state
SmartAsset also did an in-depth analysis to come up with a state-by-state breakdown of what it costs to raise kids. We were curious to see where our state ranked! Here's what their 2024 analysis found.
Graphic: Macaroni KID | Data source: SmartAsset
The high-cost states: Where raising a child is most expensive
Massachusetts: If you’re raising a kiddo in Massachusetts, get ready for a yearly cost of close to $36,000, making it the most expensive state for raising a child. Childcare alone eats up $21,503 of that. That’s like paying for a tiny human’s Ivy League education before they even start kindergarten!
Hawaii: Not far behind Massachusetts on the big spend list is Hawaii, with an annual price tag of $35,049 to raise a child. Aloha is right.
Rounding out the top five of most expensive states? Connecticut, Colorado, and New York.
The bargain states: Where your dollar stretches further
But don’t worry, parent bargain hunters! All you have to do is head south for the chance to raise a kid without breaking the bank. The five states with the lowest cost are all in the south — Alabama, Kentucky, Louisiana, Arkansas, and Mississippi.
In Mississippi, the least expensive state in the nation, it costs just over $16,000 a year to raise a child — less than half of what it costs in Massachusetts. That’s like getting a discount on parenting!
How does your state rank?
Here’s the breakdown of the average cost of raising a child state by state in 2024, according to the analysis by SmartAsset:
Parenthood might be pricey, but is it worth it? For us, the answer was a joyful heck, yes, but your decision might be different! We can tell you from our own experience that with a bit of planning and creativity, you can navigate the financial path of parenthood.
Just take a deep breath, hold on tight, and enjoy the ride.
