As they prepare to welcome their first child, Jason and Sammy Diniz are excited but aware of the financial responsibilities that come with parenthood.
“I’ve been planning ahead, so I feel ready now,” Sammy said. “It’s not perfect, but we’re doing our best.”
A recent study by LendingTree reveals that the cost of raising a child has increased 35% since 2023. The total cost varies greatly by location. Families in states like Hawaii, Massachusetts, and Washington face annual costs between $32,000 and $36,000. In contrast, families in Mississippi, South Carolina, and Alabama pay between $16,000 and $18,000 per year.
The study points to childcare as the primary driver of rising costs, adding an average of $6,000 annually to family budgets.
“If you’re relying on a middle-class income, childcare is a significant cost,” said Isabelle Sawhill, a senior fellow emeritus with the Brookings Institution.
The financial burden is also linked to declining birth rates. The CDC reports that birth rates have decreased by 2% annually from 2014 to 2020, with a 3% decline in 2022.
Despite the financial challenges, Jason and Sammy are looking forward to parenthood. “We’re moving forward with the best we can do,” Jason said.
According to Pew Research Center, rising childcare costs are pushing more families to consider having a stay-at-home parent. The study also found that 62% of Americans believe parenting is harder than they expected.
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