A new LendingTreestudy reveals that the cost of raising a child in the U.S. has surged 25%, reaching an estimated $297,674 over 18 years. The biggest expense jump? Day care costs, which skyrocketed 51.8% from $11,752 to $17,836 since 2023. Other major increases include food (29.6%) and health insurance premiums (25%). Meanwhile, federal tax credits have shrunk by 44.4%, further straining family budgets.
Hawaii is the most expensive state to raise a child, with costs totaling $362,891. High food, rent, and day care costs contribute to the state’s ranking. Massachusetts ($333,004) and Washington ($332,418) follow closely behind.
“No one should be surprised that costs have risen,” said LendingTree analyst Matthew Schulz, noting inflation and labor costs as key factors.…