It now costs over $300K to raise a child in the US: Really daunting situation for parents

It now costs more than $300,000 to raise a child in the US over 18 years – a nearly 30% rise over the past three years, according to a new analysis.The average cost of raising a kid hit $303,418 after tax exemptions and credits, up 1.9% from a year ago, according to a LendingTree study.American parents are shelling out an average of $16,857 annually on little Johnny or Suzy — and $29,325 during each of the child’s first five years, a more expensive time of life due to infant and toddler day care. The average cost of the first five years actually decreased slightly, owing to “a dip in day care costs,” according to LendingTree.Matt Schulz, chief consumer finance analyst at LendingTree and the author of the study, said some parents are already making sacrifices, like dining out less – or in more drastic cases, deciding whether it’s worth it for one parent to remain in the workforce or stay at home.“We all wish that we didn’t have to crunch numbers and take finances into account when thinking about having a first kid or expanding your family, but the way costs are today, you’re doing yourself a bit of a disservice if you don’t,” he told The Post.The nation’s fertility rates hit record lows in 2025, extending roughly two decades of declines.A large driver was a sharp downturn in birthrates for teens and women in their 20s.Among the costs measured by the LendingTree analysis, including rent, food, apparel, transportation and insurance, infant day care tops the list – averaging $17,264 a year.Day care costs climb even higher in some states, hitting $22,628 in California and $20,439 for New Yorkers.“When you factor in costs like infant day care that has seen practically hockey-stick growth in previous years … it all adds up to a really, really daunting situation for parents,” Schulz said.Erica Sandberg, consumer finance expert at CardRates.com, said some families “are starting to get creative” – shopping at thrift stores for childre...