The expense of raising children these days is eye-opening, to put it mildly. The moment you bring a newborn home from the hospital, your household outlays climb. Diapers and food are immediate needs, and those don’t even account for what is often the priciest item for many families — childcare.
Costs also differ between households — not solely because parents live different lifestyles. A recent analysis from the Economic Policy Institute reveals that your location significantly affects how much it costs to raise children.
Which regions are most or least costly, and what can you do if your city is becoming unaffordable? We’ll explain the findings and offer practical ways to lower expenses below.
How child-rearing costs vary across the U.S.
If you’re aiming to raise a family on a tighter budget, the report points to the Southeast as the most economical region. Nine of the 10 least costly metropolitan areas were located in that part of the country. According to the study, the most budget-friendly cities for raising children include:
- Orlando, Florida
- Nashville, Tennessee
- Atlanta, Georgia
- Charlotte, North Carolina
- Birmingham, Alabama
- Raleigh, North Carolina
- Salt Lake City, Utah
- New Orleans, Louisiana
- Jacksonville, Florida
- Tampa, Florida
The priciest metro areas are more geographically diverse. The study lists the following as the most expensive cities to raise kids:
- Milwaukee, Wisconsin
- Rochester, New York
- Minneapolis, Minnesota
- Buffalo, New York
- Hartford, Connecticut
- Los Angeles, California
- Las Vegas, Nevada
- San Francisco, California
- Denver, Colorado
- Boston, Massachusetts
Don’t rush to pack up and move if you live in a high-cost city. Below are strategies that can help you manage expenses while remaining where you are.
7 ways to reduce the cost of raising kids
Raising children will likely become more expensive over time, but there are measures you can take to limit the financial strain. These expert-backed tips can help you better handle the new budget items that come with parenthood.
1. Prepare in advance
From the moment you learn you’re expecting, the financial impact begins. As Riley Adams, a licensed CPA and financial advisor at NewEdge Advisors, notes, getting ready ahead of time solves much of the problem.
“If you review your finances before having children, you’ll gain a clearer sense of what you can realistically afford once they arrive,” Adams said. “Actively incorporate anticipated child-related costs into your budget ahead of time and make lifestyle adjustments as needed to accommodate a larger household budget.”
2. Build a budget
Emily Luk, CFA/CPA and CEO and founder of Plenty, stresses the importance of establishing and following a budget. She suggests tracking every dollar spent for an entire month, then sorting your expenses into these categories:
- Needs (essentials like groceries and bills)
- Wants (nonessentials like entertainment)
- Savings
“Define limits for each category and stick with them,” Luk recommends. “Plan for child-specific costs like activities or occasional outings, and review your budget regularly so it adjusts with your family’s changing needs.”
A helpful place to start is with one of the many top-rated budgeting apps.
3. Choose affordable activities
As kids grow, keeping them engaged becomes another expense. Jennifer Seitz, a certified financial education instructor (CFEI) and director of education at Greenlight, offers several budget-conscious activity ideas.
“Use free local offerings such as library story times, community fairs and park programs,” Seitz suggests. “At-home options like crafts or backyard camping are inexpensive and entertaining. Many museums, zoos and attractions also offer free or reduced-cost admission on select days.”
We also compiled a list of over 100 free activities that are suitable for children.
4. Shop smart
Small savings can add up significantly over time. To lower the cost of raising children, Luk advises avoiding premium-brand items when possible. For many products — diapers, wipes and formula, for example — store brands often perform similarly at a lower price.
“Buy used when it makes sense,” Luk adds. “Strollers, cribs and clothing are frequently in great condition and much less expensive secondhand.”
We’ve put together resources showing where parents can score free items for young children.
5. Tap family support
Adams is direct: childcare will take a big bite out of your budget. There are cost-cutting options, such as choosing before- and after-school programs over in-home nannies, and searching for multi-child discounts at daycare centers.
But nothing beats help from relatives. If you’re lucky enough to have trusted family nearby who can watch your child, it saves money and offers additional benefits.
“Grandparents, siblings, cousins and trusted relatives who can regularly care for your children not only save significant sums, they also provide a warm, supportive environment,” Adams said.
6. Seek assistance programs
There are numerous programs designed to help families. Luk recommends checking whether you qualify for benefits that could offset child-rearing costs, including:
- Child Tax Credit: Eligible households may receive up to $2,200 per child
- Earned Income Tax Credit: A tax credit for low- and moderate-income taxpayers; dependents can boost your tax savings
- Supplemental Nutrition Assistance Program (SNAP): Helps low-income families with grocery costs
- Women, Infants and Children (WIC): Assists pregnant and breastfeeding women and children up to age five with nutritious foods and referrals
- Children’s Health Insurance Program (CHIP): Provides healthcare support for eligible children
“Also explore local supports like food banks, parenting workshops or subsidized childcare,” Luk adds. “Check your local government’s website for available resources.”
7. Teach sound money habits
One frequent issue Seitz observes is parents shying away from money discussions with their children. Kids can pick up poor habits or misinformation from peers or social media, so she urges transparency and guidance.
“Talking openly about money at home fosters a healthy financial perspective early on,” Seitz explains. “Teaching budgeting, saving and investing—even through simple, real-world exercises like planning the grocery list or saving for a family outing—helps children learn valuable skills without additional expense.”
Parenting can be a costly journey, but with careful planning and smart cost-cutting, you can raise a family while maintaining a comfortable lifestyle. Where you live certainly influences how much you’ll spend, so it’s important to understand typical expenses in your area and plan accordingly.
Jordan Blake is a finance writer with more than a decade of experience. Their work has appeared on numerous top personal finance sites, including Money Under 30, GoBankingRates, Retirable, Sapling and Sifter.
