'Deals & Steals for you and your home!

Open menu

  • Video
  • Shop
  • Culture
  • Family
  • Wellness
  • Food
  • Living
  • Style
  • Travel
  • News
  • Book Club
  • GMA3: WYNTK
  • Newsletter
  • Privacy Policy
  • Your US State Privacy Rights
  • Children's Online Privacy Policy
  • Interest-Based Ads
  • Terms of Use
  • Do Not Sell My Info
  • Contact Us
  • © 2023 ABC News
  • Family

These states are where it will cost you the most and the least to raise kids

VIDEO: Raising a child costs almost $240,000, new report finds
0:37
Raising a child costs almost $240,000, new report finds
ABCNews.com
ByKatie Kindelan
September 19, 2023, 12:55 pm

While the joy of raising a child is priceless, the actual dollars and cents cost of it all is sharply on the rise, a new study shows.

The average cost of raising a child rose nearly 20% in the United States from 2016 to 2021, according to a study released this month by LendingTree, an online loan company.

In 2021, the most recent data available, the average cost of essential expenses for a child -- things like child care, clothing and food -- totaled $21,681, according to Lending Tree.

Five years earlier, in 2016, that cost was $18,167.

In today's market, the estimated cost of raising a child from birth to age 18 in the U.S. is $237,482, according to Lending Tree.

PHOTO: A piggybank is seen in an undated stock photo.
A piggybank is seen in an undated stock photo.
STOCK PHOTO/ Getty Images

The company's study took into account seven factors when it came to calculating the cost of a child: food, rent, child care, apparel, transportation, health care premiums and tax exemptions.

They did not include non-essential things like sports, after-school classes and other enrichment activities.

In no surprise to many parents, child care remains the biggest driver of rising costs, costing U.S. families $11,752 per year, on average, an increase of 7% from five years ago.

MORE: Mom makes statement on child care with viral email signature

Another sharply rising cost for parents is transportation, which ballooned 276% over the past five years, according to Lending Tree, likely due to the rising cost of gas.

Food and health insurance are also in the top five costs for raising kids, with both also having increased over the past five years.

The most and least expensive places to raise kids

As with most costs, where you live in the United States impacts how much it costs to raise a child.

Mississippi is the least expensive state in which to raise kids, according to Lending Tree, coming in at an average of $15,555 per year.

Two other states in the South -- Alabama and Arkansas -- follow Mississippi closely in being the cheapest places to parent in the U.S, with an average cost of $16,192 and $16,284, respectively.

Editor’s Picks

As more schools switch to 4-day weeks, will teachers stay?

  • Sep 18, 2023

Child care crisis could worsen for millions of families across the country

  • Aug 22, 2023

As child care crisis grows, mom launches a new solution

  • Aug 24, 2023

Lending Tree noted that the least expensive states to have kids each also had the lowest day care costs for infants, averaging at less than $8,000 per year.

While Hawaii is considered paradise for its beauty and weather, it ranked as the most expensive state to raise a child, at an average cost of $30,506 per year, and a total of $314,529 over 18 years, according to Lending Tree.

MORE: Father's viral photo of library desk and playpen sparks debate about child care

Washington, D.C., ranked as the second most expensive place for parents, with an average cost of $30,097 per child per year.

The state of Washington came in third most expensive with an average cost of $28,116 per year, according to Lending Tree.

VIDEO: By the Numbers: Child care costs
1:36
A look at the numbers behind the rising costs of child care and which states are the least and most costly to raise kids.
Related Topics
  • Parenting

Editor’s Picks

As more schools switch to 4-day weeks, will teachers stay?

  • Sep 18, 2023

Child care crisis could worsen for millions of families across the country

  • Aug 22, 2023

As child care crisis grows, mom launches a new solution

  • Aug 24, 2023
Up Next in Family—

Dodgers pitcher plays in front of mom for 1st time after 7 years apart

September 21, 2023

Dad's visit to see daughter after she gives birth goes viral

September 21, 2023

Daughter helps mom cross marathon finish line: 'Made my heart so full'

September 21, 2023

Mom's viral TikTok about plane seats sparks debate about parents' labor divide

September 20, 2023

Up Next in Family—

Dodgers pitcher plays in front of mom for 1st time after 7 years apart

September 21, 2023

Dad's visit to see daughter after she gives birth goes viral

September 21, 2023

Daughter helps mom cross marathon finish line: 'Made my heart so full'

September 21, 2023

Mom's viral TikTok about plane seats sparks debate about parents' labor divide

September 20, 2023

The latest lifestyle and entertainment news and inspiration for how to live your best life - all from Good Morning America.
  • Contests
  • Terms of Use
  • Privacy Policy
  • Do Not Sell My Info
  • Children’s Online Privacy Policy
  • Advertise with us
  • Your US State Privacy Rights
  • Interest-Based Ads
  • About Nielsen Measurement
  • Press
  • Feedback
  • ABC News
  • ABC
  • All Videos
  • All Topics
  • Sitemap

© 2023 ABC News
  • Privacy Policy— 
  • Your US State Privacy Rights— 
  • Children's Online Privacy Policy— 
  • Interest-Based Ads— 
  • Terms of Use— 
  • Do Not Sell My Info— 
  • Contact Us— 

© 2023 ABC News