How Much Does It Cost to Raise a Child in 2026?

The USDA's last official estimate (adjusted for inflation): approximately $330,000-$360,000 to raise a child from birth to age 18, excluding college. That is $18,000-$20,000 per year. The biggest expenses by category: housing (29%), food (18%), childcare and education (16%), transportation (15%), healthcare (9%), clothing (6%), and miscellaneous (7%).

The Childcare Crisis

Childcare alone costs $13,000-22,000 per year for infant care, depending on your state. In Massachusetts and California, full-time infant daycare exceeds $20,000/year — more than in-state college tuition. Childcare costs typically drop significantly when the child enters public school at age 5, saving $10,000-15,000/year. This makes years 0-5 the most financially demanding period of parenthood.

How to Afford Kids

Use the Dependent Care FSA ($5,000 pre-tax = $1,250-1,750 in tax savings). Claim the Child Tax Credit ($2,000-3,000 per child). Buy secondhand gear — babies outgrow everything in 3-6 months. Breastfeed if possible ($1,500-3,000/year savings versus formula). Accept hand-me-downs without guilt. The most expensive trap is buying everything new and brand-name — babies do not know the difference between a $400 stroller and a $1,200 one.