Having enough money under your belt to raise a child takes a considerable salary, but how much you need varies considerably depending on where you live, according to new research.
Smart Asset ranked the affordability of U.S. states when it comes to two parents raising two children. The findings show that a dual income of around $300,000 is needed in the most expensive states, whereas some $175,000 is needed every year to live comfortably with your family, pay off any debts and contribute to savings.
The study found that Mississippi is the most affordable state for parents raise children in, where a family would need about $177,798 to cover its basic needs, wants and savings goals. Closely following in second place is neighboring Arkansas, where two parents would need a dual income of $180,794 to keep their family afloat. In third is West Virginia, where raising two children would require an income of $189,363 per year.
The top 10 most affordable states to raise children:
- Mississippi — $177,798
- Arkansas — $180,794
- West Virginia — $189,363
- Louisiana — $189,613
- Kentucky — $190,112
- South Dakota — $192,608
- Alabama — $193,606
- Oklahoma — $194,106
- Tennessee — $195,770
- Kansas — $196,768
On the other end of the spectrum, Massachusetts is the most expensive place to rear children. For a dual-income household, raising two children would require $301,184 per year. It is closely followed by Hawaii, where parents will need to make an annual combined salary of $294,611, whereas, in third-place Connecticut, parents need $279,885 to get by.
The top 10 least affordable states to raise children in are:
- Massachusetts — $301,184
- Hawaii — $294,611
- Connecticut — $279,885
- New York — $278,970
- California — $276,723
- Colorado — $264,992
- Washington — $257,421
- Oregon — $257,338
- New Jersey — $251,181
- Rhode Island — $249,267
Another study conducted in 2023 by LendingTree found that, over the course of a child's life, up until the age of 18, Hawaiian parents pay the most—$314,529—some $44,000 more than second-place Alaska, where the cost of raising a single child would set you back $270,930. Other states in the top five are Maryland ($259,149), Washington ($257,388), and Oregon ($252,558).
Comparatively, South Carolinians require the lowest lump sum—$169,327, nearly half of what it costs to have children in the Aloha State. Other states where the cost of raising a child from birth to 18-years-old include Michigan ($174,440), Georgia ($176,626), Delaware ($180,688), and Mississippi ($185,350).
However, these dollar amounts reflect only the essential costs identified by LendingTree for raising a child. This includes expenses for food, housing, child care, clothing, transportation, and health insurance, along with the influence of tax benefits like the Child Tax Credit.
However, these figures exclude costs related to other activities such as sports and after-school programs, not to mention the increasing expenses associated with sending them off to college.
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