Having children can be rewarding, but thanks to higher rates of inflation, it’s also getting more expensive. Today, parents can expect to spend around $23,000 per year, or $414,000 through age 18, according to recent research.
If you’re considering growing your family, understanding all the costs involved can help you prepare financially. Here’s a closer look at the average annual cost of raising a child in the U.S. and how that figure has changed over the past two decades.
Key Points
• The annual cost to raise a child in 2025 is projected to be around $23,000.
• The total cost of raising a child to age 18 is expected to reach $414,000.
• Housing, food, and child care and education are the largest expenses.
• Inflation has significantly increased the cost of raising a child since 2000.
• Effective budgeting and tracking spending can help manage these rising expenses.
What Is the Cost of Raising a Child in the US in 2025?
According to recent research, the cost of raising a child can cost $23,000 per year as of 2024, which would equal $414,000 through age 18. That doesn’t include adjusting for inflation, nor does it include how much it costs to attend college.
Of course, the amount you end up spending depends on a number of factors, including household income, the cost of childcare, and the cost of living in your area.
If you want more personalized insights to help you plan your spending, consider using an online calculator.
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A Comparison of the Cost of Raising in Child in 2000 vs 2025
The average cost of raising a child in 2000 looked much different than it does now, thanks in large part to the recent surge in inflation rates.
In 2000, a typical middle-income family could expect to spend $165,630 to raise a child to the age of 17, according to an analysis of USDA (U.S. Department of Agriculture) data by the Brookings Institution. For a child born in 2015, the USDA forecast that the cost would be $233,610. In 2025, that same family would spend $414,000 to raise a child through age 18, which is considerably more. Note that this amount doesn’t include extras like summer camp or birthday parties, nor does it factor in the cost of college.
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Top Expenses of Raising a Child in 2025
When it comes to the average cost of raising a child from birth through 18, families can expect to spend around $23,000 per year. The following table shows where that typically money goes.
Cost category | Average percent (%) of spending |
---|---|
Housing | 29% |
Food | 18% |
Child care and Education | 16% |
Transportation | 15% |
Healthcare | 9% |
Miscellaneous | 7% |
Clothing | 6% |
Source: USDA’s Expenditures on Children by Families, 2015
Top Expenses of Raising a Child in 2000
Average middle-income parents in 2000 spent around $9,201 per year on child-rearing costs. As the chart below shows, housing and food were the biggest expenses. But compared to 2025, parents spent less on other things, like healthcare and child care and education.
Cost category | Average percent (%) of spending |
---|---|
Housing | 33% |
Food | 18% |
Transportation | 15% |
Miscellaneous | 11% |
Child care and Education | 10% |
Healthcare | 7% |
Clothing | 6% |
Source: USDA Expenditures on Children by Families, 2000
How to Reduce the Cost of Raising a Child Today
No matter when you become a parent, you’ll likely have some major expenses. The good news is, it is possible to save money while raising kids. Here are some tips to consider:
• Look for ways to lower housing expenses. Housing costs are the number-one expense for families, so finding ways to trim expenses there can really help you save. For instance, if you’re planning to move, you may want to expand your search to include smaller, less expensive homes located in neighborhoods with lower property taxes.
• Purchase secondhand clothes. Kids tend to outgrow their clothing quickly. Rather than spend a lot on new outfits, shop secondhand whenever possible. Tag sales, thrift stores, and consignment sites are all good places to explore.
• Make the most of your local library. Are expensive streaming subscriptions eating away at the family budget? Consider canceling some of those streamers and heading on over the local library. Not only can you check out books and audiobooks for free, you can also rent DVDs and enjoy free events.
• Shop generic. When it comes to basics like diapers, toiletries, and household cleaners, skip the fancy brand names and go for less-expensive generic versions. Purchasing from wholesale clubs may also stretch your budget.
Recommended: How to Create a Household Budget
More Financial Tips for Parents
Whether you’re looking to start a family or add to your brood, there are also some smart financial habits you can start today that can make it easier to afford raising children. As a bonus, these habits can also help you teach your child about money management.
• Pay down debt quickly. When a borrower takes on debt, they repay not only the amount they borrowed, they also owe interest and fees to the lender in exchange for borrowing the money. That’s why it’s so important to pay off debt quickly. The sooner you erase your debt, the less interest you’ll have to pay.
• Create a budget that grows with your family. Coming up with a budget — and adapting it to meet your current needs — can help your finances roll with whatever changes life has in store. It’s a good idea to sit down once a month to evaluate what’s working in the budget, what can be improved, and what new expenses are on the horizon. A spending app can also help you keep tabs on where your money is going.
• Prioritize savings. When you’re raising a family, it’s easy to let long-term savings goals fall by the wayside. One way to make saving second nature is to sock away a portion of each paycheck into a savings account or investment account. By paying yourself first, you’re better positioned to reach your financial goals, whether that’s putting multiple children through college, investing, or saving for retirement.
Recommended: Creating an Investment Plan for Your Child
The Takeaway
Having a family can be rewarding — and expensive. The average family in 2024 paid around $23,000 per year to raise a child. Housing, food, and child care/education are among the top three biggest expenses. The good news is, there are ways to manage expenses and still save for long-term financial goals. Budgeting well and tracking spending and saving are key steps.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
FAQ
How much does it cost each year to have a child?
The average family spent around $23,000 per year to raise a child in 2024.
How much does it cost to raise a child to 18 in 2025?
According to 2024 data, a family will spend $414,000 to raise a child through the age of 18.
How much does a baby cost on average?
The average family can expect to spend around $23,000 a year to raise a child, according to 2024 data. Costs for a baby could be less, since there aren’t, say, educational expenses yet or hobbies to pay for. But there could be the costs of setting up a nursery and childcare.
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