Here's How Much It Costs to Raise a Child

Raising a child to age 17 costs approximately $300,000, according to a Motley Fool Money analysis drawing on cost data from the U.S. Department of Agriculture, the Brookings Institution, and the latest inflation figures from the Bureau of Labor Statistics.

That figure reflects a decade of actual price increases, including the inflation spike of 2021 and 2022. For families considering having children, it is a useful benchmark for what the financial commitment looks like in today's dollars, covering everything from diapers and day care to groceries, healthcare, and a teenager's car insurance.

The $300,000 figure is an estimate for a middle-income family with two children. Costs vary significantly by income level and geography, and they do not include college or delivery.

How much it costs to raise a child

The estimate of $299,000 to $300,000 to raise a child is grounded in three data points that each tell part of the story.

• The USDA puts the base cost at $233,610 in 2015 prices for a middle-income, two-child family. This is the government's most recent published estimate of the costs of raising a child, and the source of the detailed category breakdown used throughout this article. It is based on spending attributable to raising a child, not simply on the difference in spending between households without children and those with a child.
• The Brookings Institution projected $310,605 in 2022, adjusting the USDA baseline for 4% average annual inflation. At the time, annual inflation was running at 8.5%.
• The Motley Fool Money estimate of $299,000 to $300,000 applies actual BLS inflation data through 2025 and projects the remaining years to adulthood at 2.0% to 2.2% inflation. Inflation compounded at 3.1% annually from 2015 to 2025, above Brookings' moderate scenario but well below 4%.

The three figures tell a consistent story: raising a child costs somewhere between $284,000 and $311,000 in today's dollars, depending on inflation over the remaining years. The Motley Fool Money estimate, which uses the most current available data, sits near the middle of that range.

Costs increase as children get older. A middle-income family spends roughly $12,680 per year during a child's first three years and up to $13,900 per year between ages 15 and 17, as food, transportation, and activity costs rise with age.

Costs also scale with household income. In today's dollars, low-income families (annual income under $59,200) can expect to spend approximately $223,000 raising a child to age 17. High-income families (over $107,400) can expect to spend closer to $479,000. The gap is driven largely by spending on child care, education, and discretionary items.

Where the money goes: housing, food, and child care lead

Housing is the largest single expense when raising a child, accounting for 29% of the total cost for a middle-income family, according to USDA. Food is next at 18%, followed by child care and education at 16% (for families with those expenses), transportation at 15%, and healthcare at 9%. The mix shifts by income:

• High-income families devote 23% of costs to child care and education, versus 16% for middle-income families and 12% for low-income families, reflecting greater use of paid care and private schooling.
• Housing and food account for 53% of costs for low-income families, versus 47% for middle-income families, leaving less room for spending in other categories.
  
  

Child care costs vary sharply by a child's age

Child care is the fastest-rising component of the cost of raising a child, and the most sensitive to a child's age.

Annual costs for center-based care follow a clear pattern: the younger the child, the higher the price. The estimates below are based on data from the Department of Labor Women's Bureau National Database of Childcare Prices, inflated to 2025 estimates using the BLS Consumer Price Index for day care and preschool.

Infant care is roughly 20% more expensive than preschool-age care, largely because state licensing rules require lower child-to-staff ratios for infants. After age 12, most families no longer incur regular child care costs.

Day care and preschool costs grew 28% between January 2015 and April 2025, according to the BLS Consumer Price Index for day care and preschool, outpacing general inflation over the same period.

A Care.com survey of 3,000 parents, taken in November 2025, found that the average parent spends 20% of household income on child care, nearly triple the 7% the U.S. Department of Health and Human Services considers affordable. Among those surveyed, 31% had dipped into savings to cover the cost.

Health costs start before birth and don't stop after

The financial commitment of parenthood begins before a child arrives. The average total health cost of pregnancy, childbirth, and postpartum care is $20,416 for women enrolled in employer health plans, with $2,743 paid out of pocket, according to a 2025 analysis of employer insurance claims by the Peterson Center on Healthcare and Kaiser Family Foundation. Costs vary by delivery type: a cesarean section averages $28,998 in total health costs ($3,071 out of pocket), while a standard delivery averages $15,712 ($2,563 out of pocket).

In the first two years of life, infant medical costs average $16,575 ($1,511 out of pocket), per the same analysis.

Ongoing health coverage adds substantially to the annual cost. The average annual premium for employer-sponsored family health insurance is $26,993, according to the KFF 2025 Employer Health Benefits Survey, with workers paying $6,850 and employers covering the remaining $20,143.

The U.S. birth rate has hit a record low

The U.S. birth rate among women aged 15 to 44 fell to 54.5 births per 1,000 women in 2023, a record low and a sharp decline from the 60 to 70 range that held between 1980 and 2017, according to the National Center for Health Statistics.

Pew Research found in 2023 that 48% of non-parents said they were unlikely to ever have children, up from 37% in 2018. Among them, 57% cited preference rather than circumstance, saying they simply did not want children.

The declining birth rate carries long-term implications for workforce size, economic growth, and the financial sustainability of programs like Social Security that depend on a growing working-age population.

Average cost of childbirth, adoption, IVF, and surrogacy

Spending on a child can begin well before birth. Here is how the most common paths to parenthood compare on cost:

Childbirth

• Average total health cost of pregnancy, delivery, and postpartum care: $20,416
• Out-of-pocket for those on employer plans: $2,743
• Cesarean section: $28,998 total / $3,071 out of pocket
• Standard delivery: $15,712 total / $2,563 out of pocket
• Source: Peterson Center on Healthcare and KFF, 2025

Adoption

• Foster care adoption: virtually free; subsidies may continue until age 18 (HHS)
• Independent adoption with attorney: $25,000 to $45,000
• Private agency adoption: $30,000 to $60,000
• International adoption: $20,000 to $50,000

In-vitro fertilization (IVF)

• Cost per session: $10,000 to $15,000
• Multiple sessions often required
• Source: Society for Assisted Reproductive Technology

Surrogacy

• All-in range: $100,000 to $200,000
• Includes surrogate compensation ($60,000 to $70,000+), agency fees ($20,000 to $40,000), health insurance for the surrogate ($15,000 to $30,000), legal fees, and IVF costs
• Source: Circle Surrogacy, 2025; Illume Fertility, 2025

Family budgeting tips for raising kids

Having children is among the most joyous milestones for many couples, but it's also among the most expensive. Here are some ways to save money when growing a family.

• Plan ahead for big, known expenses: Budget and save for larger, repeat purchases that are on a predictable schedule, like summer camp, back-to-school shopping, birthdays, and holidays. These are often seasonal sales to take advantage of when it comes time to spend on these expenses, so set reminders to begin bargain hunting at certain times of the year.
• Get creative with vacations and birthdays: Not every special occasion has to involve expensive tickets, reservations, travel, and so on. Take advantage of cheaper recreation options, like camping. Look for free museum days and other discounted cultural experiences for kids. Lean into DIY for birthday decorations and make decorating for the holidays a fun crafting opportunity.
• Communicate with your partner: The financial commitment of starting a family is significant and will likely impact your family's personal finances, budget priorities, and goals. Being on the same page as your partner on how much you can spend, what you should be spending on, and what your family financial goals are is crucial to head off conflict and create a more resilient financial foundation.
• Invest in a 529 plan or custodial IRA: A 529 plan is a tax-advantaged investment account, like a 401(k), designed to help families save for education expenses. 529s are typically used to pay for higher education, like college. A custodial account can be used by parents or adults to gift or invest money for a minor. Unlike a 529, they don't have a specific use attached to them.