NORFOLK, Va. — As families navigate rising expenses, a new report reveals the financial challenges of raising children.
According to LendingTree the annual cost to raise a child has gone up by 35% since 2023. Families spend an average of 22.6% of their income on the basic annual expenses to raise a child, up from 19% in the 2023 LendingTree study.
“It’s shocking, but I guess it's also in line with everything else that's pretty expensive now. I mean, just a carton of eggs, right? Everything has gone up drastically,” said Sara Weber, a mother of two.
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Weber's story is a reality for many other families being forced to rethink their budgets.
“We definitely are mindful. We choose to shop at some of your wholesale options, like Sam's Club. We love Sam’s Club. I think most families do, especially when you have upwards of two plus children,” Weber said.
The LendingTree report highlighted that daycare costs have seen the most significant increase, rising from $11,752 to $17,836. Food and health insurance premiums also surged, each climbing just under $1,000.
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While the report showed an annual increase of 35.7%, Matt Schulz, LendingTree's chief consumer finance analyst and author of “Ask Questions, Save Money, Make More: How to Take Control of your Financial Life" said this puts households in a difficult financial position.
“Most people's budgets don't have 30% worth of wiggle room in them. It forces people to make some difficult decisions,” Schulz said.
Regional differences further complicate expenses. Schulz said that states with the highest income often are the most expensive states to live in.
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When it comes to the highest and lowest annual costs associated with raising a small child, Virginia ranks 14th, while North Carolina ranks 42nd, according to the report.
“Things are so uncertain right now that one of the best pieces of advice is just to control what you can control," Schulz advised.
He recommends families understand their state’s expenses, take advantage of tax breaks, shop secondhand, open a high-yield savings account and ask for help.
"I would say I would have at least one more [child] if I could, but with everything, it's just hard. It's harder to afford the show,” Weber said.
This article was researched, reported, and written by a WTKR News 3 journalist. AI was used to minimize typos and ensure style continuity.
