How Much It Costs to Raise a Small Child in Each State

LendingTree.com, September 7th, 2021 (excerpts)

Key findings

• Basic annual expenses to raise a child (including day care) equal $28,785 in the District of Columbia, more than any other state. Hawaii and Maryland follow at $25,828 and $25,156, respectively, while costs are lowest in Mississippi at $13,596.

• The average essential costs to raise a child jumped 25.6% nationally between 2014 and 2019. Expenses totaled $16,040 in 2014, versus $20,152 in 2019.

• Over 18 years, raising just one child in Hawaii may cost $281,597 in total — the most expensive by LendingTree’s projections. Michigan parents may spend the least on raising a child, with essentials totaling $157,919 over 18 years.

• High incomes help parents in New Jersey spend the smallest portion of their incomes — 15.4% — on children’s basic needs. Maine families may be stretching their budgets the most, spending 24.1% of their income on children’s basics.

Hawaii follows D.C. as the second most expensive state to raise children, costing an estimated $25,828 annually. Parents in the Aloha State may find themselves paying $4,428 more, on average, in rent than those without children. Maryland comes in third, where parents can expect to spend $25,156 annually to support their young children….

Of course, the costs of raising just one child will change and add up over the years. LendingTree researchers projected expenses for 18 years of support, assuming five years of day care and that incomes and tax benefits will rise along with the standard cost of living.

While several states with the highest average annual expenses appear near the top of rankings, other states may inch ahead with the highest estimated costs for 18 years of supporting children. Parents in Hawaii may spend the most on bringing up their children with an estimated total cost of $281,597 to support a kid’s basic needs for 18 years.

Maryland and Alaska follow closely with costs estimated to total $252,569 and $236,370, respectively. On the other end of the spectrum, Michigan may outshine Southern states for child affordability as costs may total $157,919 over 18 years here, less than Alabama and Mississippi….

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