The 5 Biggest Costs of Raising Kids, Ranked by What Parents Actually Report

Food and household goods top the list of major child-related costs for 38% of surveyed parents — outranking childcare, which came in second at 29%. That ranking surprises most people. Ask any new parent what they’re dreading financially, and childcare is usually the first word out of their mouth.

But the slow, steady drain of feeding a growing child and keeping a household stocked turns out to be the heavier burden for more families than any single line item on a daycare invoice.

A recent survey of more than 1,000 U.S. parents and caregivers documented exactly where the money goes — and how hard it hits. The results paint a detailed picture of what raising children actually costs, not what people expect it to cost. Those two numbers are rarely the same. Sixty-seven percent of parents said raising children is more expensive than they anticipated, with 38% saying it costs “much more” than expected and 29% saying “somewhat more.”

Here is how the biggest costs break down — ranked by what parents actually report.

No. 1: Food and Household Goods — The Relentless Daily Cost

Groceries and household supplies don’t arrive as a single large bill. They arrive every single week, which is part of what makes them so difficult to manage. Infant formula alone can run $150 to $300 per month depending on the brand and whether a child has dietary restrictions. Diapers add another $70 to $100 monthly for a newborn, and that cost persists for two to three years. Add wipes, baby wash, laundry detergent used in larger quantities, and food once a child starts eating solids, and the monthly total climbs fast.

As children grow older, the costs shift but don’t shrink. A school-age child eating three meals at home on weekends and after-school snacks throughout the week adds meaningful volume to a family’s grocery bill. By adolescence, food costs often peak. This is the cost category that compounds quietly over eighteen-plus years, which is why more parents cite it as their top financial pressure than any other single expense.

No. 2: Child Care — The Fixed Monthly Commitment

Childcare ranks second, cited by 29% of parents as a top cost — and for families currently paying for it, the numbers are striking. Fifty-four percent of surveyed parents are currently paying for childcare. Of those, 32% spend between 20% and 29% of their household income on it.

To put that in concrete terms: a family earning $80,000 per year could be spending $16,000 to $23,000 annually on childcare alone. Urban families often pay more. Full-time infant care in cities like Washington D.C., San Francisco, or New York can exceed $2,500 per month at licensed daycare centers. According to Child Care Aware of America, infant care costs have outpaced inflation in most states, making this a structural problem rather than a temporary budget squeeze.

Unlike groceries, childcare is a fixed commitment. Missing a payment means losing a spot. That inflexibility forces families to cut spending elsewhere, often in categories that affect long-term financial health.

No. 3: The Monthly Budget Overage That Catches Families Off Guard

Twenty-four percent of parents surveyed said their monthly spending increased by $1,000 or more after having children. That number tends to shock people who have spent time with a baby budget calculator — because the line items seem manageable until they aren’t.

What the calculators don’t capture is the friction cost of having children: the extra takeout order on a night when no one has time to cook, the last-minute clothing purchase when a child outgrows a size mid-season, the copay for a sick visit that wasn’t in the monthly plan. These are not irresponsible choices. They are the predictable unpredictability of raising a child, and they accumulate.

Forty-six percent of parents say child-related finances cause them stress always or usually. That sustained financial pressure affects decision-making across the board, including one of the most significant decisions a family can make: whether to have more children. Half of surveyed parents said they have delayed or avoided having additional children due to financial concerns.

No. 4: Child-Related Debt — When Costs Exceed What Savings Can Cover

Fifty-eight percent of parents have gone into debt — through credit cards or loans — to cover child-related expenses. That figure cuts across income levels and family structures. Debt is often the mechanism families use to bridge the gap between what childcare costs, what an emergency costs, and what their savings account holds.

Medical bills, unexpected childcare gaps, school supplies, extracurricular fees, and back-to-school shopping are among the most common debt triggers. Credit cards are the most accessible tool, which also makes them the most expensive over time. Carrying a $3,000 balance at a typical credit card interest rate can add hundreds of dollars in interest annually to a family’s cost burden.

Rocket Mortgage’s findings on family expenses also found that housing factors into the financial calculus significantly: 43% of parents said they needed more space after having children, and 41% cited the desire for homeownership stability as a priority. As the survey itself notes, this data suggests that many families still view a stable home as an important part of the American Dream, despite the financial challenges they may face to get there — and that aspiration is a meaningful motivator, not an obstacle.

No. 5: The Long Game — Education Savings

Sixty-one percent of parents are currently saving for future education costs, which signals both awareness and anxiety. College costs have risen sharply over the past two decades, and families are absorbing that pressure earlier and earlier.

The challenge is that education savings competes directly with current expenses. A family managing a $1,500 monthly childcare bill and a stretched grocery budget has limited capacity to fund a 529 plan consistently. Many parents manage it by saving small amounts regularly rather than waiting for surplus income — a reasonable approach, but one that requires the budget to have any room at all.

What the data ultimately shows is that no single cost dominates the family budget. It is the combination — food, childcare, monthly adjustments, debt management, and long-range savings goals — that shapes the overall picture. Understanding where each dollar goes is the first step toward managing it effectively.

References

U.S. Department of Agriculture, Center for Nutrition Policy and Promotion. (2017). Expenditures on Children by Families, 2015.

Child Care Aware of America. (2024). Child Care in America: 2024 Price & Supply. https://www.childcareaware.org/price-landscape24/