What Raising a Child Costs: What $230K Covered Before vs. What’s Needed in 2026
Kids are expensive. Most people know that. But the cost of raising a child up to age 18 increased to more than $320,000 in recent years, according to calculations from Northwestern Mutual.
The financial institution adjusted for inflation based on data from the U.S. Department of Agriculture (USDA) outlining the costs of childrearing in 2015. Back then, it cost just about $233,610 for the same basic essentials, including housing, food, healthcare, clothing, school and more.
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Here's a deeper look at these figures, as well as what you can do to stretch your money further.
Breaking Down the Costs
The figures above don’t include college; they do include early childcare and K-12 education expenses as an average.
It’s important to remember that raising a child also varies based on the cost of living, so many regions cost less than the average and many cost more. These figures, derived from USDA data and the Northwestern Mutual report, are for a middle-income, married couple family.
Spending Category | 2015 | 2026 |
Housing (rent or mortgage) | $67,747 | $92,800 |
Food | $42,050 | $57,600 |
Transportation | $35,042 | $48,000 |
Healthcare | $21,025 | $28,800 |
Clothing | $14,017 | $19,200 |
Childcare and education (pre-kindergarten to 12th grade) | $37,378 | $51,200 |
Misc. | $16,353 | $22,400 |
Total | $233,612 | $320,000 |
Did Salaries Keep Pace With the Cost of Raising a Child?
These numbers represent a big jump in the cost of living for parents. But is it really more expensive to raise a child in 2026 than it was in 2015?
The median household income in 2015 was $56,516, according to U.S. Census Bureau data. The median household income is roughly $83,730 now, according to the most recent data from the Federal Reserve Bank of St. Louis.
According to calculations, the median household income rose roughly 48%, while the cost of raising a child rose 37%.
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Why Raising Children Feels Like It Costs More Today
Raising children feels more expensive today because daily and necessary items, like food, healthcare and transportation, rose a lot.
Gas at the pump, for instance, cost an average of just $2.52 per gallon in 2015, according to the U.S. Energy Information Administration. In May 2026, the national average is $4.39, which is a big jump. For people in areas without a good public transportation system, gas is a necessary cost to get children to daycare, school, activities, playdates and doctor’s appointments.
You could consider an energy-efficient and affordable vehicle, but a Toyota Prius may not work to comfortably carry car seats, sporting gear and friends. There’s a reason many parents upgrade to an SUV or minivan.
How To Reduce Costs
The best way to reduce child-rearing costs is to control costs and spending where you can.
Food
Kids eat a lot – and the older they get, the more they eat. Switching to store-brand or private-label groceries, buying in bulk at wholesale clubs, and even planting a garden for fresh vegetables if you can find the time can help you save money.
Kids tend to eat whatever snacks are in the house, so if you buy that 40-pack of chips from Costco and don’t want them gone in 10 minutes, it’s smart to keep a secret stash and replenish the accessible snacks as needed.
Clothing
You can find name-brand clothing at thrift stores and consignment shops that your kids (even teenagers) will be happy to wear.
If you have friends with kids of multiple ages, host a “hand-me-down” party at your house and let everyone pass on the clothes their kids outgrew.
School
Obviously, switching from private to public school can save thousands of dollars a year. But there are other ways to save money on things like school supplies by shopping back-to-school sales and even visiting the dollar store for notebooks and pencils.
Where Not To Skimp on Children’s Products
When it comes to buying baby products like car seats and cribs, skip garage sales and buy new. You never know if a car seat has been in an accident, which could compromise its safety. Baby clothes and toys are typically fine to buy secondhand, but check for product recalls.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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