Childcare costs $28,190 a year—forcing households earning $145,656 to choose between work and daycare

A household must earn $402,708 annually for childcare to be affordable under federal guidelines. The average two-child household earns $145,656—just over one-third of that threshold. With childcare averaging $28,190 a year, many families face a stark choice: a parent works, or the family pays for daycare.

The national cost of raising a child over 18 years has reached $303,418, according to a LendingTree study. That figure rose 1.9% in one year, driven by a 49% increase in average monthly rent—from $1,128 to $1,680—and clothing costs up more than 25%.

Childcare is the largest expense for families with children under 5. In Hawaii, it costs $40,342 per year, the highest in the nation. Maryland and Massachusetts follow at $36,419 and $34,247. But the problem is not isolated to high-cost states.

In Nebraska, Montana, and Wisconsin, early childrearing costs jumped at least 23% due to limited childcare supply and high demand. Kansas, Alaska, and Montana saw 18-year child-rearing costs rise between 21.7% and 23.5% from 2025 to 2026. Fourteen states recorded increases of at least 10%.

"Childcare deserts," where supply fails to meet demand, allow providers to charge premium rates. Sixty-five percent of childcare centers and 51% of public-school-based programs raised tuition in February. Nearly a third of home-based providers did the same.

High costs are eroding long-term financial security. Families are delaying or forgoing savings for emergencies, college, and retirement. For many, the decision to have children now includes a calculation once considered unthinkable: whether they can afford to be parents.