I recently read an article that said it costs over $300,000 on average to raise a child to age 18 in the United States. Lending Tree estimates the cost at $303,418 for 2026. That averages out to $16,857 per year, a big chunk of a lot of families’ income. No wonder people no longer have large families.
The expenses include childcare and groceries, and account for tax incentives, but it doesn’t include the cost of college. For many parents they are still paying for expenses for a child living at home or going to college well after the age of 18. College could add another $152,000 to the average cost, making it almost half a million dollars to raise a child.
A poll done by CBS News found that 77% of respondents think it is harder to raise a family today than in the past.
Where are the most expensive states to raise a child? Hawaii, Maryland, Massachusetts, California, New Jersey, Washington, Colorado, New York, the District of Columbia, and Connecticut are the top 10 on that list. The estimated cost to raise a child in Hawaii is $412,661.
All this while the median household income in 2024 was $83,730. That means half of earners make less than that.
You will be happy to know that Wisconsin falls somewhere in the middle with the estimated cost to raise a child to age 18 at $253,000, or just over $14,000 per year.
Pew Research studies show that in 2018, 37% of survey participants said they were unlikely to have children. That number grew to 47% in 2023. A survey last year done by MassMutual found that 23% of adults between age 18 and 43 do not plan to ever be parents. U.S. birth rate is at a record low and declining by about 2% per year at the same time older adults are tending to live longer.
Business Insider did a survey earlier this year that found 75% of Gen Z said they want financial security in the next five years, but only 27% were planning on starting a family. Those interviewed ranged in age from 18 to 26.
These numbers have to make one wonder. We have heard about overpopulation and limiting population growth for years. Apparently, the problem might take care of itself as fewer babies are born each year, with cost being a big factor.