The majority of American parents, over 80 percent, say that the cost of raising children in the United States is spiraling "out of control" due to a variety of factors, such as inflation and tariffs, a new survey shows.
The rising costs have affected several aspects of families' lives, including fast food, board games, clothes, and even home goods. Despite this, the survey also found that while having children has become more expensive, kids are good motivators for parents to manage their finances better.
The Cost of Raising Children
The survey, conducted by BMO Financial Group, involved 2,500 Americans, found that roughly 71 percent of parents who had children under 18 said that they felt overwhelmed by their financial responsibilities, compared with 54 percent of respondents without children at home.
However, 60 percent of parents were able to set an annual budget, compared to only 37 percent of respondents who did not have any kids. Furthermore, the survey found that parents were more likely to set financial goals, have a written financial plan, and have a professional financial advisor, compared to their non-parent counterparts, according to USA Today.
Read more: Universal Child Care: New York City Mayor-Elect Zohran Mamdani's Plans for Taking Care of Kids
In a recent news release, Paul Dilda, who is in charge of consumer strategy at BMO Financial Group, said that parents today have reported feeling significant financial pressure. However, they have also stepped up to the challenge in order to take control of their family's financial plans.
The latest survey showed that 83 percent of respondents said that the cost of raising children had spiraled "out of control." He added that 77 percent of parents said that they felt the pressure to keep up with other families by spending more money than they should.
Becoming Financially Responsible
Another factor in the rising cost of having children is social media, as 80 percent of parents said that content from parenting influencers further fueled their financial anxiety. There was a separate survey of 3,000 parents, conducted by Ameriprise Financial, that showed more than seven in 10 respondents experienced parental guilt resulting in overcompensating with small perks or overspending on their kids, AOL reported.
The surveys come as the cost of raising children in the U.S. ranges anywhere from $241,106 to $513,722 until they turn 17 years old. This government estimate does not include the cost of higher education, and actual costs can vary depending on a family's choice for child care, entertainment, extra-curricular activities, and other child-related expenses.
The last time that the annual estimate was updated was in 2015, where it averaged $233,610, and it assumed that a child was born to a middle-income, married couple. When that number is adjusted for inflation, it becomes $322,427, as of June 2025, as per US News.
