The joy of raising a child comes with a serious financial undertaking, which can be overwhelming for many parents. Recent data from Brookings Institution suggest that an average middle-income family with two children would spend approximately $310,605 to raise a child born in 2015 until the age of 17. This indicates an alarming rise from the earlier estimate of $233,610 released by the U.S. Department of Agriculture (USDA) in 2015.
One of the major expenses contributing to the cost of child-rearing is housing, including mortgage or rent payments, taxes, insurance, maintenance costs, utilities, and household goods. Consumer Expenditures Data from 2024 show that an average household's yearly expenditure on housing is $26,266, while the median household income is $83,730.
The actual costs can vary greatly depending on the location, dwelling type, and family size. Economic conditions and housing market trends also play a significant role. Housing assistance programs, listed on the U.S. Department of Housing and Urban Development website, could offer financial relief to eligible lower-income families.
Food expenditure is another variable cost, dependent on the number of children, household income, region, and dietary preferences among other factors. USDA releases monthly reports on food costs at different levels. As per April 2026 data, a family of four on average can expect to spend between $12,158 to $20,018 per year on food at home, roughly 24% of their income.
Childcare expenses also take up a significant portion of the family budget. The cost can vary based on the type of care required, number of children, and the geographical location. For instance, in 2022, costs for school-age home-based care in small counties were around $5,357, whereas infant center-based care in large counties could cost up to $17,171.
These basic expenses exclude the cost of higher education, which can significantly add to a parent's overall spending if they decide to financially support their child's college education. The average yearly cost for the academic year 2025-2026 ranged from $25,850 for public colleges to $60,920 for private colleges
Moreover, parents need to budget for additional expenditures such as transportation, health care and insurance, clothing, extracurricular activities and family trips. Luckily, parent-friendly tax credits and deductions, investment vehicles like 529 plans or other options can help families manage these expenses effectively. Despite the high costs, access to resources like housing assistance from HUD, childcare discounts, and IRS tax credits can alleviate some of the financial pressures of raising a child.