Raising kids has always been costly, but inflation and regional price differences have made it even harder for families to keep up. While no one parent can control rising costs, understanding where the money goes and planning ahead can make a big difference.
According to a 2022 analysis from public policy think tank The Brookings Institution, a middle-income family with two children could expect to spend approximately $310,605, adjusted for higher future inflation, to raise one child born in 2015 through age 17.
More recent data suggests that costs have continued to rise since then. A 2023 study by LendingTree estimated that the average annual cost of raising a child has climbed to $21,681, a 19% increase from 2016, bringing the total estimated cost per child to $389,000 over 18 years.
Where you live makes a huge difference: A 2024 SmartAsset study estimates that raising a child in Massachusetts, the most expensive state in the country, costs nearly $36,000 per year, while in Mississippi, the cheapest state, it’s less than half that.
Over 18 years, that’s a $439,000 difference.