Raising a child in the U.S. costs an average of $23,000 per year for families with two working parents. Costs vary by state, ranging from $16,000 to over $35,000 annually, according to SmartAsset, using data from the MIT Living Wage Calculator.
The primary expenses for parents include childcare, housing, food, healthcare, and transportation. Childcare is the largest expense, followed by housing and food. Housing costs include rent, mortgage payments, and utilities, while food covers groceries and dining. Healthcare includes insurance and medical expenses, and transportation accounts for vehicle costs or public transit.
Massachusetts has the highest cost at $35,841 annually, while Mississippi has the lowest at $16,151. Despite differences, childcare remains the largest expense nationwide.
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These figures do not include the cost of higher education, which can significantly add to a family’s financial burden. Parents manage costs through budgeting and assistance programs to ensure financial stability while raising their children.
According to the data compiled by SmartAsset, here are the top 15 U.S. states with the highest cost of raising a child reaching $35,841
1. Massachusetts: $35,841
Massachusetts tops the list, with the annual cost of raising a child at $35,841. The major contributors to this high cost include childcare, housing, and food. Massachusetts has some of the highest costs in these areas, which impacts the overall cost of raising a child.
2. Hawaii: $35,049
Hawaii is close behind Massachusetts, with an annual cost of $35,049. The state’s high cost of living, particularly in housing and childcare, adds up quickly for families. Despite its beautiful environment, living in Hawaii comes with a steep financial price tag for parents.
3. Connecticut: $32,803
In Connecticut, parents spend $32,803 per year on raising a child. As with other states, housing and childcare are the biggest financial burdens. Connecticut’s cost of living, especially in housing and childcare, contributes to the overall expense.
4. Colorado: $30,425
The cost of raising a child in Colorado is $30,425 annually. Families face similar costs in housing and childcare, with additional expenses for food and transportation. Colorado’s lifestyle and amenities come with a price, particularly for families with young children.
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5. New York: $30,247
New York, one of the most well-known states in the U.S., requires parents to spend $30,247 per year to raise a child. High housing costs, especially in New York City, and expensive childcare contribute significantly to the overall cost.
6. California: $29,468
In California, the cost of raising a child is $29,468 annually. With its large population and high demand for housing, California sees higher-than-average costs in this area, along with the expected high costs of childcare and food.
7. New Hampshire: $27,849
The annual cost of raising a child in New Hampshire is $27,849. While the state does have relatively affordable housing compared to others on this list, childcare expenses still add up, making it a considerable expense for parents.
8. Washington: $27,806
In Washington, parents will spend $27,806 per year raising a child. Housing and childcare are major costs, particularly in Seattle, where living expenses are higher than the state’s average.
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9. Rhode Island: $27,630
Rhode Island comes in with an annual cost of $27,630. Housing and childcare are expensive, and with the state’s smaller population and limited availability of affordable services, parents in Rhode Island face significant costs.
10. Minnesota: $27,406
Raising a child in Minnesota costs $27,406 per year. The cost of housing and childcare are the biggest factors in this amount, though other necessities like food and transportation also contribute.
11. Vermont: $27,170
Vermont’s annual cost for raising a child is $27,170. Despite being a relatively small state, Vermont has high costs in housing and childcare, which raise the overall expense for families.
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12. Nevada: $26,914
In Nevada, parents will spend $26,914 annually to raise a child. Housing costs, particularly in Las Vegas, and childcare are significant contributors to this total.
13. New Jersey: $26,870
New Jersey’s annual cost is $26,870. Housing and childcare costs are high in New Jersey, with additional expenses for food and healthcare adding to the burden.
14. Alaska: $26,860
Alaska’s cost of raising a child is $26,860. While the state offers unique benefits, such as no state income tax, high costs in childcare and housing still make it a costly place to raise a child.
15. Oregon: $26,334
Oregon rounds out the list with an annual cost of $26,334. Childcare and housing are the primary drivers of these expenses, along with food and transportation.
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