A study from LendingTree shows that the cost of raising a young child has increased significantly, up to about 20% From 2016 to 2021.
The study calculated national and state-level numbers for the most recent year when complete data was available.
The average annual cost of raising a child was $21,681 in 2021, up from an average of $18,167 in 2016. The most expensive state to parent in 2021 was Hawaii, where the annual cost was $30,506. Mississippi was the least expensive, where the total cost was $15,555. On average, these costs account for 19.1% of the family budget.
The estimated cost of raising a child to legal adulthood was $237,482.
Over that five-year period, LendingTree found that the cost of rent actually declined by about 18%, and the value of the state tax credit offered to parents of children more than tripled to $3,600. But other child-rearing necessities, including food, clothing, transportation, child care, and health insurance, became more expensive.
The group attributes this increase at least in part to inflation, which was relatively stable before 2020 but increased significantly in 2021.
The group recommends techniques for dealing with the enormous costs of child-rearing, including making cooperative arrangements for child care rather than paying for professional services out of pocket and taking advantage of assistance programs at the local, state, and federal levels. Is included. childcare.gov,