The cost of raising a child in the United States has climbed past $300,000 over an 18-year period, reflecting a sharp increase of nearly 30% in just the last three years, according to a new financial analysis, the NY Post reports.

A report by LendingTree found that, after accounting for tax breaks and credits, the total average expense to raise a child has reached $303,418. That figure represents a 1.9% increase compared to the previous year.

On a yearly basis, parents are spending about $16,857 per child, with costs rising significantly during the early years. In fact, the first five years of a child’s life come with an average annual expense of $29,325, largely due to the high price of infant and toddler child care.

Despite the overall upward trend, the study noted a slight drop in expenses during those early years, attributing it to “a dip in day care costs.”

Matt Schulz, LendingTree’s chief consumer finance analyst and the report’s author, said families are already adjusting their lifestyles to cope with the financial strain. Some are cutting back on discretionary spending, while others are weighing more significant decisions, such as whether one parent should leave the workforce.

“We all wish that we didn’t have to crunch numbers and take finances into account when thinking about having a first kid or expanding your family, but the way costs are today, you’re doing yourself a bit of a disservice if you don’t,” he told The Post.

The financial burden of raising children comes as U.S. fertility rates fell to historic lows in 2025, continuing a downward trend that has lasted roughly 20 years. Much of that decline has been driven by a steep drop in births among teenagers and women in their 20s.

Among the various expenses analyzed — including housing, food, clothing, transportation, and insurance — infant day care emerged as the single largest cost, averaging $17,264 per year.

In certain states, those costs are even higher, with annual infant care reaching $22,628 in California and $20,439 in New York.

“When you factor in costs like infant day care that has seen practically hockey-stick growth in previous years … it all adds up to a really, really daunting situation for parents,” Schulz said.

Erica Sandberg, a consumer finance expert at CardRates.com, said families are increasingly finding ways to cut costs, including buying secondhand clothing or exchanging goods through social media groups instead of paying retail prices.

Some states far exceed the national average cost of raising a child. Hawaii ranks as the most expensive, with total costs reaching $412,661 over 18 years.

Alaska and Maryland follow as the second- and third-costliest states, with totals of $365,047 and $326,360, respectively, while California ranks fourth at $312,300.

New Jersey comes in fifth at $312,295, and New York State ranks 14th, with a total cost of $278,051.

On the lower end of the spectrum, states such as New Hampshire, Washington, DC — which provides free preschool for 3- and 4-year-olds — and South Carolina are among the most affordable, with totals of $201,963, $202,115, and $204,213.

Families with young children are facing particularly heavy financial pressure, spending an average of 21.9% of their income on essential yearly costs. The analysis is based on a dual-income household with one child earning a median family income of $99,999.

Federal guidelines consider child care affordable only if it consumes no more than 7% of a household’s income.

In New York City, child care costs are especially steep. Data from City Comptroller Mark Levine’s office shows that in 2024, families paid an average of $26,000 annually for infant and toddler care. To afford care for a 2-year-old, a household would need an income of $334,000.

That figure is four times the median family income and roughly equivalent to earnings from 10 minimum-wage jobs, according to Levine’s office.

The price of child care has surged in recent years, particularly after the pandemic, with day care providers repeatedly raising rates. From June 2024 through last month, child care costs increased by an average of 8%, outpacing overall inflation, which rose 4% during the same period.

In less populated areas, a shortage of high-quality child care options has allowed providers to charge higher prices, Schulz explained.

He added that New York City presents its own challenges, as elevated labor and real estate costs make operating child care facilities especially expensive.

Sandberg pointed out that rising wages for child care workers — necessary to keep up with increasing living expenses — are another factor driving costs higher.

As more household income is directed toward child care, families are left with less money for other financial obligations, such as housing, transportation, small business investments, retirement savings, and emergency funds, Schulz said.

The issue of affordability has also entered the political arena, with some candidates — including New York City Mayor Zohran Mamdani — advocating for free child care.

In March, Mamdani and Gov. Kathy Hochul announced $73 million in funding to create 2,000 free 2-K seats in the city beginning this fall.

Financial experts advise families to begin saving for child care as early as possible to ease the burden of rising expenses.

“I don’t think that it’s cause for alarm,” Sandberg told The Post. “I think it should be more of a call to action.”

Schulz recommended setting aside a small portion of each paycheck into a high-yield savings account designated as a “family fund.”