A provision of the recently enacted One Big Beautiful Bill Act will have the government creating “Trump Accounts” for newborns born between 2025 and 2028 and depositing $1,000 in seed money. An article on the White House website says this “will set them on a course for prosperity from the very beginning.”
That $1,000 can’t be accessed until a child turns 18, but even if parents could use it earlier, it would be just a drop in the bucket of how much families spend to raise their children.
For years, the U.S. Department of Agriculture published an annual report that calculated the average cost of raising a child to adulthood, not including college expenses. That report was long considered the gold standard in calculating the cost of children, but it hasn’t been updated since 2015.
At that time, it found the cost of raising a child born in 2015 averaged $233,610. That assumes the child was born to a middle-income, married couple. ‘
When adjusted for inflation, the number jumps to $322,427 as of June 2025, based on data from the U.S. Bureau of Labor Statistics. The cost for lower income households may be only $241,106, according to government data, while higher income families may expect to spend $513,722 to raise a child.
However, the true price could be even more.
Isabel V. Sawhill, a senior fellow emeritus in economic studies at the Brookings Institution, says the USDA figure assumes a 2.2% inflation rate, which is lower than the current rate.
These numbers aren’t necessarily reflective of all families’ experiences, though. Many circumstances and choices can increase or decrease the cost of child rearing.
But still, for some families in the trenches, these numbers don’t sound too far off. “I think it’s completely accurate,” says Shannon LaRosse, a mother of two and chief operating officer for WellSpring Financial in Norristown, Pennsylvania.
How Much Does It Cost to Raise a Child?
Using the Consumer Expenditures Survey, the USDA found that the cost of raising kids can vary by region, with the Northeast being the priciest location in the nation.
For children born in 2015, average spending breaks down into the following percentages, according to the USDA:
— Housing: 29%
— Food: 18%
— Child care and education: 16%
— Transportation: 15%
— Health care: 9%
— Miscellaneous: 7%
— Clothing: 6%
Those percentages may have changed in recent years, though.
A 2025 Cost of Care Survey from Care.com found that parents spent, on average, 22% of their household income on child care in 2024. Average costs ranged from $343 per week for one child at daycare to $827 per week for one child to receive care from a nanny.
More than half of those surveyed — 57% — spent at least $9,600 per year on child care. And the average parent says they have depleted 29% of their savings to pay for child care.
[Read: Is Summer Camp Tax Deductible?]
Factors That Influence Child Raising Costs
While average costs can be helpful for budgeting purposes, they can also paint an overly bleak picture of parenting. Many parents can and do spend significantly less.
“It can be less or more depending on household income and how (parents) choose to spend their money,” LaRosse says. She notes that a household’s list of wants may be longer once children are added to the mix, and parents who want to rein in costs may need to consider whether some expenses are truly needed.
Grandparents nearby who are willing to babysit for free can all but wipe out child care expenses. Meanwhile, monthly mortgage and rent payments may be lower for those living in cities with affordable housing, such as Decatur, Illinois, or Enid, Oklahoma.
However, there are trade-offs to living in some states with a lower cost of living. For instance, parents in northern states need to buy clothing appropriate for four seasons. The cost of winter boots, coats and other apparel can add up.
As kids age, they may have more expenses for school activities, sports teams and electronic devices. One way to minimize these costs is to ask teens to find a job and pay for their own discretionary expenses.
“Regardless of economic status, I have clients that range from those that cover all of their children’s expenses … to very well-to-do clients that want to make sure their children appreciate the value of a dollar,” says Tammy Trenta, founder and CEO of asset management firm Family Financial in Los Angeles.
“They work during their high school years, are responsible for buying their own car and paying their own car insurance and cell phone bill,” she adds.
For parents inclined to take the former approach, Trenta encourages them to consider whether they are doing their child a disservice by not preparing them for the realities of managing their own money later in life.
[Read: Kids and Taxes: 6 Tax Credits Parents Should Know About]
Are You Able to Afford a Child?
While the choice to have children shouldn’t be reduced to merely a financial decision, money can’t be disregarded completely.
“Finances should always be a factor when considering expanding your family,” Trenta says. “Sure, there are ways to lower this amount, but each additional child you have could result in five more years that you need to continue working.”
There are immediate costs associated with the birth or adoption of a child that couples can anticipate. However, after that, parents usually have significant flexibility in how much or how little they spend on their kids.
Having multiple children can raise costs — but perhaps not as much as people expect. Parents may already have a home and vehicle large enough to accommodate multiple children. Child care providers may also offer sibling discounts. Plus, clothes and toys can be passed down to younger siblings, and food that is purchased in bulk can result in a lower per-serving cost.
Rather than relying on statistical averages, LaRosse recommends prospective parents talk to people who currently have young children. Experienced parents can be the best source of information on how much families actually spend on kids in your area.
Budgeting for a Baby
For would-be parents, the various numbers come with bad news and good news. The bad news is that the savings they have prepared in anticipation of a baby might not be enough. The good news is there is a wide variation in the cost estimates because so many expenses are optional.
Rather than buying expensive gadgets, upsizing the house for more space and insisting on buying new clothes, parents can keep costs down by making due with what they have already. Parents may also want to consider buying secondhand, using grocery savings apps and rethinking expensive family vacations. Limiting extracurricular activities can also rein in costs.
[READ: How to Save Money on Purchases for a Newborn]
Other ways to make raising children more affordable are outside the control of parents. “It’s worth pointing out that other advanced countries do a lot more to help parents raise children,” Sawhill says.
Almost every nation in the world has a national paid parental leave policy, the Bipartisan Policy Center says. The U.S. is one of only six countries without one. Some countries, like Belgium and Norway, offer free child care, while other rich countries subsidize it heavily, according to UNICEF.
Barring any change of heart from legislators, parents shouldn’t expect those things anytime soon, and the $1,000 Trump Accounts won’t help them either. Instead, couples should honestly evaluate not only their finances but also their commitment to sacrificing creature comforts for the sake of raising children.
For those who make the leap to parenthood, they may find there is ultimately only one word to describe the cost of kids: priceless.
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This Is How Much It Costs to Raise a Child in 2025 originally appeared on usnews.com
Update 08/07/25: This story was published at an earlier date and has been updated with new information?
