Raising a child is a wonderful, though often pricey, experience, depending on where you reside. The latest study indicates that Mississippi is the cheapest place to raise a child, with costs of only $16,490 per annum for housing, food, and day care. For budget-strapped parents, the news is especially good for Mississippi, a prime option for stretching dollars. The costliest place, of course, is Hawaii, where parents must shell out a whopping $36,472 per year.
The research, published on March 31, 2025, by LendingTree, a top internet loan marketplace, examines the expense of raising a child for all 50 states. It indicates that Mississippi’s low expense is fueled by low child care costs, as day care for an infant there is under $10,000 per year, a benchmark only five other states exceed. Nationally, the cost of providing the essentials is $29,419 per year, a drastic 35.7% increase from the 2023 cost of $21,681. After 18 years, the total is up to $297,674, a 25.3% increase from the earlier estimated total of $237,482.
In arriving at these figures, LendingTree drew from reliable sources such as the U.S. Census Bureau, the MIT Living Wage Calculator, and the 2023 report from Child Care Aware of America. They further incorporated 2024 figures from Care.com for nationwide child care expenses, the U.S. Bureau of Economic Analysis for regional price changes, and the Tax Foundation for state-level tax credits. This combination of sources provided a clear view of costs for 2023, with some projections for taxes and day care using the most recent trends.
The study’s method was straightforward but thorough. Researchers focused on a two-earner household earning a median income of $96,922, filing taxes jointly. They calculated costs for essentials over 18 years, except for child care, which covered the first five years before kids typically start school. The expenses included rent, food, day care, apparel, transportation, health insurance premiums, and state tax benefits.
For example, rent costs were based on the difference between households with and without a child under 18, using Census data. Food and transportation costs came from comparing spending patterns, adjusted by region. Child care costs relied on state-specific day care prices, while apparel focused on average spending for children’s clothing.
Mississippi’s $16,490 annual cost is a stark contrast to Hawaii’s $36,472, where high rent, food, and child care expenses drive up the total. Other pricey states include Massachusetts at $33,004 and Washington at $32,418. The study didn’t include extras like sports or music lessons, so real-world costs could be higher for families investing in those activities.
For parents, this data offers valuable insights. Mississippi’s affordability could make it a smart choice for families on a budget, while those in high-cost states like Hawaii may need to plan carefully. The study also underscores how quickly child-rearing costs are rising, with the national average climbing significantly in just two years. Policymakers might use these findings to address affordability gaps, especially in expensive states.
Curious about how your state stacks up? Check out the full breakdown at LendingTree’s study page to see where your family’s budget fits in. With costs climbing, knowing the numbers is the first step to planning smart.
