Want to improve your GPA in middle school and high school?
Rising Costs of Child Care in the U.S.
According to a recent Fox Business report, childcare expenses surged nearly 20% from 2016 to 2021. From 2016 to 2021, childcare costs jumped from $18,167 to $21,681 annually. Over an 18-year period, a typical American family can expect to spend approximately $237,482 per child, not including college tuition.
If you’re a parent or planning to become one, understanding how location impacts these expenses can help you plan better.
The Most Expensive States to Raise a Child
The chart above, from SmartAsset’s June 2024 study, ranks U.S. states by the cost of essential needs (child care, housing, food, healthcare, and transportation) for raising one child in a household with two working adults. Data is based on the MIT Living Wage Calculator.
According to the data, the 10 most expensive states for raising children in the United States are:
- Massachusetts: $35,841/year
- Hawaii: $35,049/year
- Connecticut: $32,803/year
- Colorado: $30,425/year
- New York: $30,247/year
- California: $29,468/year
- New Hampshire: $27,849/year
- Washington: $27,806/year
- Rhode Island: $27,630/year
- Minnesota: $27,406/year
Key Highlights
Massachusetts is the most expensive state for raising a child, nearly twice the national average. Over half of the annual cost ($21,503) is for child care, the highest in the country. Additional costs include $5,000 for housing and $2,190 for food.
Hawaii ranks second at $35,049 per year, including about $19,500 in childcare costs. Housing costs are a significant factor, requiring an additional $6,188 annually for a family with a child. In contrast, in Massachusetts, it costs about $4,983 more.
Connecticut follows with a yearly cost of $32,803. This includes $19,554 for child care, $4,139 for housing, and $2,100 for food.
Colorado comes in fourth, with an annual cost of $30,425. Child care costs around $16,620, while housing and food add $4,100 and $2,000, respectively.
New York and California rank fifth and sixth, with annual costs of $30,247 and $29,468. In New York, child care alone accounts for $17,821 annually.
In California, child care costs $14,433 per year.
The Most Affordable States to Raise a Child
In contrast, southern states dominate the list of most affordable places to raise a child:
- Mississippi: $16,151/year.
- Arkansas: $17,424/year
- Louisiana: $17,918/year
- Kentucky: $18,588/year
- Alabama: $18,653/year
- South Dakota: $19,008/year
- Kansas: $19,494/year
- Tennessee: $19,525/year
- Oklahoma: $19,535/year
- West Virginia: $19,558/year
Mississippi offers the lowest overall cost, with families saving over $19,000 annually compared to Massachusetts. Childcare costs are the lowest in the nation at $4,725 annually.
Online classes for middle and high school are led by top teachers
Key Findings and Takeaways
The gap between the most expensive and most affordable states highlights the financial disparities across the U.S.:
- Raising a child in Massachusetts costs nearly $36,000 per year: Massachusetts is the most expensive state in the country to raise a child, with annual costs of $35,841. More than half of that cost comes from child care ($21,503), the highest of any state.
- The cost difference between the most and least expensive states can reach $439,000 over 18 years.
- Housing costs are highest in Hawaii and California: States like Hawaii and California rank high due to significant housing costs, with families spending over $5,000 annually for additional space.
- Annual child care expenses exceed $15,000 in seven states, including Massachusetts, Hawaii, Connecticut, and New York.
- In three states, annual costs are under $18,000: Mississippi is the cheapest state to raise a child for a two-income family, at $16,151 per year. States like Arkansas and Louisiana remain below the $18,000 annual cost threshold, making them more viable options for budget-conscious families.
The cost of raising a child is a critical consideration for families planning their futures. While states like Massachusetts and Hawaii are known for their high living standards, they also come with hefty childcare and housing expenses. On the other hand, southern states like Mississippi and Arkansas provide more affordable options, potentially easing the financial burden on families.
Plan ahead and make informed decisions to ensure your family thrives—no matter where you live.
The teachers in this course series are all expert instructors with years of experience teaching in middle and high schools.
