Source: Fortune.com
Summary
The average cost of raising a child in the US has reached $303,418, according to a study by LendingTree. The cost varies by state, with Hawaii being the most expensive at $412,661 and New Hampshire being the cheapest at $201,963. The cost of childcare is the highest expense for families with children under 5, with 14 states seeing an increase of at least 10% in childcare costs. The high cost of childcare is affecting long-term savings and family planning decisions.
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The numbers tell one story.
LendingTree’s study reveals a 1.9% increase in the cost of raising a child, driven by significant increases in rent and clothing costs. Childcare costs are becoming a major burden, with 65% of childcare centers and 51% of public-school-based programs reporting tuition increases. The average two-child household income of $145,656 is just over one-third of the target income needed to make childcare affordable. Matt Schulz, chief consumer finance analyst at LendingTree, notes that high childcare costs are detrimental to long-term savings and family planning decisions. The situation is becoming increasingly unmanageable for many families.
The announcement sounds familiar: “We can’t afford to have kids.”
Author: Evan Null
