The Costs of Raising a Child
Jun 10 2026
.jpeg)
Raising a child in 2026 is more expensive than ever.
According to research from Northwestern Mutual, it now costs more than $320,000 to raise a child from birth to age 18. And this doesn’t include childbirth or college costs. Prenatal care and childbirth can add $30,000 or more without insurance. College can add $120,000 across four years, based on average tuition, supplies and living expenses in the U.S. That brings the grand total of raising a child closer to $470,000, on average, from conception through college graduation.
Understanding how the costs break down can help you find ways to reduce expenses. After all, nearly half a million dollars sounds like a lot of money. But it works out to $21,363 across 22 years, assuming you’re helping your child pay for college.
Let’s start from the beginning and look at how much it costs to raise a child in the US in 2026.
Childbirth Costs
The average cost of childbirth in the US is $20,416. A vaginal birth averaged $15,712 as of 2023, the most recent year for which data is available. The average cost of a Cesarean section was $28,998, due to it being a more complicated procedure with a longer recovery time.
If you have group health insurance, you can expect to spend roughly $2,743 on out-of-pocket costs for co-pays. A health savings account (HSA) may help you save money. You can contribute to an HSA with pre-tax dollars, lowering your adjusted gross income (AGI). That could put you in a lower tax bracket and reduce your tax liability.
If you don’t have health insurance, look into a private plan through the insurance marketplace. Low-income individuals may qualify for Medicaid or other programs.
Child Care
Childcare costs vary widely. Will you stay at home to take care of the baby in their first five years of life? Do you have family members willing to provide free babysitting while you work?
If neither of these options appeal, you could spend between $1,560 and $1,800 per month for infant daycare within the first year of the baby’s life, according to Wonderschool.com. Daycare for toddlers averages $1,360 to $1,600 per month, while preschool daycare for children ages three to five averages $1,120 to $1,360 per month.
These estimates are much higher than the Northwestern Mutual study showed, which indicated just $2,720 on childcare and education combined.
Education
The Northwestern research lumped childcare and education into one bucket. But if your child attends a private school, it could cost an average of $12,790 per year for K-12 education, according to EducationData.org.
College averages $120,000 across four years, but you can defray these costs with scholarships. Opening a 529 savings plan for your child at birth or shortly after can help you save for college. 529 plans are tax-advantaged, flexible accounts. If your child doesn’t go to college trade school, you can transfer the funds to another person or use the money yourself for continuing education.
You can also roll the money into a Roth IRA for your child, giving them a head start on retirement savings.
Housing
Housing costs account for roughly 29% of the average cost to raise a child, or nearly $5,000 per year based on the total $320,000 figure presented by Northwestern Mutual. If you’re expecting a baby, you may be looking to move into a larger home or buy a house.
If you plan to stay in the same home or apartment, housing costs remain largely the same whether you have one or more children or not.
Transportation
Transportation costs vary depending on whether you live in a major metro area with public transportation or if you live in an area where you have to drive everywhere.
You can take an infant home from the hospital as easily in a Toyota Corolla as a Honda Pilot, so your transportation costs depend on how many children you have and how much space you need to haul the kids and their gear.
As with your home, you might be able to keep transportation costs down by keeping the same car you had before you had your child, whether that’s a small sedan or a third-row SUV.
In general, you should expect to spend $48,000 across a child’s first 18 years on transportation, which is just $222 per month.
However, this changes when your child is old enough to drive. Insuring a teenage driver costs anywhere from $4,500 to $7,600 per year, or $375 to $622 per month. Costs vary by geography, gender, coverage types and other factors. Regardless, if you have to insure your child to drive at and after age 16, you should expect to add $375+ to your monthly insurance budget. If you have to pay for gasoline and additional maintenance costs, the number is obviously higher..
Food
Food costs vary widely throughout a child’s life. Let's breakdown the costs as a child ages:
Formula or Breastfeeding in the First Year
In the first year, new parents can expect to spend between $760 and $2,280 on formula, depending on the brand of formula and your infant’s appetite. That doesn’t include the costs of bottles or bottled water to mix the formula, or add-ons like a bottle warmer and cleaning brushes.
Breastfeeding costs may include additional portions of healthy food for the nursing mother, a pump, bottles and storage bags. But breastfeeding can be virtually free if you’re with the child most of the day and don’t have to pump.
Food After the First Year
After the first year, parents can expect to spend roughly $3,060 per year, on average, on food for their child, based on USDA data. Of course, you’ll spend less on food for a toddler or preschooler; food costs rise when you’re raising teens.
The USDA’s Thrifty Food Plan for April 2026 shows it costs $113 per month to feed a one-year-old. That rises to $257.70 for a teenage girl and $322.70 for a teenage boy.
You’ll spend more if your family dines out frequently, orders take-out, or buys higher quality organic food.
Healthcare
Not counting childbirth, you can expect to spend roughly $1,530 per year on healthcare for your child. The bulk of this comes from an increase in your health insurance premiums.
The average family health care plan through an employer cost $25,572 in 2024, according to data from KFF. Health care costs may also include co-pays and over-the-counter or prescription medications.
Costs may be higher if you have a medically complex child.
Clothing
When you’re raising a baby and toddler, it may feel as if you’re buying clothes constantly. But clothing makes up only 6% of the lifetime costs or raising a child, or $19,200 across 18 years.
You can save money by purchasing clothes at thrift stores or Facebook Marketplace when your child is younger; kids outgrow clothes quickly so you can often find like-new clothing at steep discounts.
If you have friends with children of similar ages, consider a clothing swap as kids outgrow clothes.
Miscellaneous Expenses
Miscellaneous expenses like activities, sports, family activities, toys and furniture make up 7% of the budget to raise a child across 18 years. These discretionary expenses can vary widely depending on your lifestyle and could take up an even larger part of your budget.
These expenses also provide the best opportunities to reduce costs by shopping frugally, letting a child choose one or two activities, and taking advantage of free entertainment like programs at your local library.
Conclusion
Raising children is expensive. And, obviously,. being a parent isn't really about what it costs to raise a child. But it is important to understand the costs and plan ahead to make parenthood as enjoyable as possible. It helps to be aware of the costs so you can prepare financially and emotionally. And it helps to know that some expenses, like childcare, are higher when your child is young. And others, like food, clothing and insurance go up as your child gets older.
Getting started on the right foot by creating a budget that includes all the expenses that come with a new child can make parenthood less stressful and life a bit more enjoyable.
Other Articles of Interest:
Make sure to check out other great articles about money management and ways to save, including:
Why a High Credit Score Can Save You Money
How Much More Expensive Is Everyday Life in 2026 vs 2021
Why Americans Feel Broke, Even When Incomes Are Rising
How To Fight Grocery Inflation Without Eating Terribly
15 Expenses You Can Cut Without Really Missing Them
Can You Retire On Social Security Alone?
Sources:
https://www.investopedia.com/how-much-does-it-cost-to-have-a-baby-in-america-6745508
https://www.northwesternmutual.com/life-and-money/how-much-does-it-cost-to-raise-a-child/
https://educationdata.org/average-cost-of-college
https://www.northwesternmutual.com/life-and-money/how-much-does-it-cost-to-raise-a-child/
https://educationdata.org/average-cost-of-private-school
https://www.fns.usda.gov/research/cnpp/usda-food-plans/cost-food-monthly-reports
The information provided on this website is for general informational and educational purposes only and should not be considered financial, investment, legal, or tax advice. While we strive to provide accurate and up-to-date information, we make no guarantees regarding the completeness, reliability, or accuracy of any content. Any financial decisions you make are your responsibility. You should consult with a qualified financial advisor, accountant, or other licensed professional before making decisions based on information found on this site.
Past performance is not indicative of future results. Any examples provided are for illustrative purposes only and may not reflect your individual circumstances. By using this website, you agree that we are not liable for any losses or damages arising from your reliance on the information provided.
