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The True Cost Of Raising A Kid

By Alexa MasonPublished Nov 5, 2014 · Updated Nov 2, 2026 · 6 min read
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Raising a child from birth to 18 costs about $303,418 in the US, according to LendingTree's latest analysis, up from $297,674 a year earlier. That's roughly $16,900 a year before college, and families who keep housing and car costs in check can spend far less.

Quick Take

  • Housing, food and child care make up more than 60% of the cost in the USDA's category breakdown, so those three choices drive most of what you'll spend.
  • Child care is the expense that swings the most: the national average price was $13,184 a year in 2025, according to Child Care Aware of America.
  • For 2026, US parents can claim a child tax credit of up to $2,200 per child under 17, set aside up to $7,500 in a dependent care FSA, and open a Trump account with a $1,000 federal deposit for children born from 2025 through 2028.

How Much Does It Cost To Raise A Child?

Estimate Total To Age 18 Notes
LendingTree, Latest $303,418 Average US cost after tax credits and exemptions
LendingTree, Prior Year $297,674 Same method, one year earlier
USDA, Child Born In 2015 $233,610 Middle-income married couple, in 2015 dollars
USDA, Adjusted To Today About $332,000 Our adjustment using the BLS consumer price index, 2015 average to September 2026

None of these include college. LendingTree's estimate also varies widely by state, from about $412,661 in Hawaii at the top of its list.

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Where The Money Goes

The USDA's last full report, published in 2017, broke the cost into seven categories. The shares below are for a middle-income married couple.

Category Share Of Total Share Of $303,418
Housing 29% About $88,000
Food 18% About $54,600
Child Care And Education 16% About $48,500
Transportation 15% About $45,500
Health Care 9% About $27,300
Miscellaneous 7% About $21,200
Clothing 6% About $18,200

Why I Still Think The Estimates Run High

When I first wrote this post in 2014, I was raising two kids on about $20,000 a year. They had a roof over their heads, food on the table, clothes on their backs and a lot of love. The headline numbers made me laugh then, and some of them still do.

Housing is the biggest example. These studies assume you'll need a bigger home for each child. If you already have a two-bedroom place, one child gets their own room, and two kids can share, as mine did. A bigger house is a choice, not a requirement.

Transportation and clothing were the others I pushed back on. Unless you're buying your teenager a car, the transportation figure assumes a lot of extra driving. And I didn't spend anywhere near $865 a year per child on clothes back then. Sales, hand-me-downs and secondhand shops kept my kids well dressed for a fraction of that.

The estimates are averages of what families do spend, not what they must spend. Plenty of it is lifestyle, and you get to decide how much.

Tax Breaks That Lower The Cost In 2026

Several US tax rules offset part of the cost. Most changed under the One Big Beautiful Bill Act in 2025.

Benefit 2026 Amount Notes
Child Tax Credit Up to $2,200 per child under 17 Up to $1,700 refundable, phases out above $200,000 of income ($400,000 joint)
Dependent Care FSA Up to $7,500 per household Pre-tax pay for child care, up from $5,000
Child And Dependent Care Credit Based on up to $3,000 of costs for one child, $6,000 for two or more Can't double-count costs paid from an FSA
Trump Account $1,000 federal deposit, up to $5,000 a year from family For children born 2025 through 2028, contributions allowed from July 4, 2026
529 Plan No federal limit, gifts up to $19,000 a year per giver without gift tax filing Tax-free growth for education

Outside the US, look up your country's main child payment: Child Benefit in the UK, the Canada Child Benefit, and Family Tax Benefit in Australia. Each is paid monthly or every few weeks and depends on household income.

Saving For College Is A Separate Bill

College isn't in any of the estimates above, and it can rival the cost of the first 18 years. A 529 plan is the main US tool, with tax-free growth when the money pays for education. See our ways to save for your child's college education and our look at whether a 529 plan can hold crypto.

Can You Give Your Kids Crypto?

Yes, but it takes the right account. A minor can't open an exchange account, so parents in the US typically use a custodial UTMA or UGMA brokerage account that supports crypto, or hold the coins themselves and earmark them.

Crypto doesn't fit every child account. Trump accounts must invest in low-cost funds that track a US stock index, so they can't hold Bitcoin. In a custodial account, a child's unearned income above $2,700 in 2026 is taxed at the parent's rate under the kiddie tax, based on the IRS's 2026 inflation adjustments. And crypto's price swings make it a poor fit for money you'll need on a set date, such as a first tuition bill.

What To Watch Out For

  • Child care sticker shock. Get quotes before your child is born. Waitlists in many cities run longer than a year.
  • Losing insurance coverage. A new baby needs to be added to your health plan within 30 days of birth in most employer plans.
  • Using an FSA and the care credit on the same costs. You can claim each dollar only once.
  • Volatile assets for fixed goals. Money for a known date, such as day care in two years or college in ten, belongs in something that won't drop 50% the year you need it.

Update

From the Cult of Money editors, November 2026: Alexa wrote this post in 2014 in response to a USDA-based estimate of $245,000. We've kept her argument and her examples in her voice, replaced the dated figures with the latest LendingTree estimate and the USDA category shares, and added the 2026 tax rules, Trump accounts and a section on giving kids crypto. Her central point holds up: the averages describe what families spend, not what a child requires. You can see more of her approach in how to afford staying home with your kids.

FAQ

How Much Does It Cost To Raise A Child To 18?

About $303,418 in the US, according to LendingTree's latest estimate, not counting college. The USDA's older estimate of $233,610 for a child born in 2015 works out to about $332,000 in today's dollars.

What's The Biggest Cost Of Raising A Child?

Housing, at about 29% of the total in the USDA's breakdown. Food and child care come next.

How Much Does A Baby Cost In The First Year?

The first year is usually cheaper than later years if a parent provides care, and far more expensive if you pay for full-time day care, which averaged $13,184 a year nationally in 2025, according to Child Care Aware of America.

What Tax Credits Can Parents Get In 2026?

The child tax credit of up to $2,200 per child under 17, the child and dependent care credit, and pre-tax savings through a dependent care FSA of up to $7,500. Children born from 2025 through 2028 also qualify for a $1,000 Trump account deposit.

Should I Invest In Crypto For My Child?

That depends on your goals and your tolerance for big price drops. If you do, use a custodial account that supports crypto, keep it to a small share of what you save for them, and don't use it for money needed on a fixed date.

AM

About the author

Alexa Mason, Contributor

Alexa is a single mother who has spent her life trying to beat the vicious cycle of dead-end jobs and living paycheck to paycheck. She shares her real-world experience navigating budgets and personal finance.

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