Raising A Child Now Costs About $303,000: Study

A Lending Tree study predicts parents starting in 2026 will spend roughly $303,418 to raise a child to age 18. This represents a 1.9 percent increase from the previous year, with the average annual cost at approximately $16,857. Hawaii is the most expensive state, projecting a total cost of $412,661 over 18 years. Coastal states show significant cost disparities, for example, California at $312,300 versus Florida at $280,280. Mississippi offers the lowest annual costs, followed by Alabama and South Dakota. Costs rose significantly in 14 states, particularly in Nebraska, Montana, Maine, and Wisconsin. The largest cost increases were in rental costs and girls' clothing. A small savings from the One Big Beautiful Bill Act's child tax credit was noted. A slight decrease in the first five years' cost of raising a child was observed, due to lower daycare expenses.