Raising a child in the US until they reach 18 years old now costs over 303,000 USD, after tax deductions, according to the latest report from financial platform LendingTree. This averages out to nearly 17,000 USD per year for parents. However, this figure significantly rises to over 29,000 USD annually during the first five years of a child's life, primarily driven by soaring childcare costs.

Childcare expenses represent the highest proportion among all necessary expenditures for families, including housing, food, transportation, and insurance. From 6/2024 until now, these costs have climbed by an average of 8%, outpacing the 4% increase in inflation during the same period.

Many American couples adopt a "tag-team parenting" model to avoid excessively high nursery and preschool fees. Illustration: Pexels

In New York, for instance, the average childcare cost in 2024 is 26,000 USD. Federal guidelines suggest that childcare expenses are reasonable if they do not exceed 7% of a household's income. To meet this benchmark, a family would need an annual income of 334,000 USD.

However, data from the U.S. Census Bureau indicates that the average income for a US household is 81,600 USD per year, with New York State averaging 85,800 USD. This means the income required for standard child-rearing is 4 times higher than the actual average income of residents. Many families with young children are currently dedicating up to 21,9% of their income to childcare.

To cope with this financial pressure, many couples in expensive states such as California and New York are resorting to a "tag-team parenting" model.

David, a logistics worker in California, shared how he and his wife rarely see each other during the week to avoid 25,000 USD in annual preschool fees. His wife works standard office hours from 8h to 16h. As soon as she returns home, David begins his night shift, working from 19h until the next morning. He then catches only a few hours of sleep before waking up to care for their child when his wife leaves for work.

"We are like married single parents", David said. He noted that while this strategy saves on childcare costs, the significant trade-off is physical exhaustion and a lack of family bonding time.

The strain of child-rearing costs extends beyond daily budgets. Matt Schulz, chief financial analyst at LendingTree, highlighted that many parents are forced to cut back on essential financial commitments, including mortgage payments, retirement savings, or emergency funds, to cover their children's expenses. This contributes to the US birth rate reaching a record low in 2025, continuing a declining trend observed for nearly two decades.

Beyond childcare, other costs associated with raising children are also escalating. Food prices, for example, increased by 29,3% between 2023 and 2026, while the cost of children's clothing rose by nearly 15%.

The financial burden of raising children varies significantly across states. Hawaii stands as the most expensive place, with total costs reaching nearly 413,000 USD by the time a child turns 18. Other states with high costs include Alaska (365,000 USD), Maryland (326,000 USD), California (312,000 USD), and New Jersey (312,000 USD). In contrast, New Hampshire and South Carolina are among the lower-cost states, where expenses hover around 200,000 USD.

Facing pressure from constituents, some local governments have begun to intervene. In New York, Governor Kathy Hochul and Assembly Member Zohran Mamdani recently announced 73 million USD in funding. This initiative aims to provide 2.000 free preschool spots for tre hai tuoi starting this fall, offering some financial relief to residents.

Thanh Thanh (According to NY Post, USAFacts, Census Bureau)