The cost of raising young children in the United States has skyrocketed to $30,000 per year, a staggering 36% increase from two years ago. With an average of $300,000 required to raise a child to adulthood, more parents are drowning in debt due to ongoing financial support for their grown children. Experts warn that without significant measures, it will be challenging to reverse the record-low birth rates.

According to financial data firm LendingTree on the 14th, the cost of raising young children reached $29,419 over the past two years, a 36% jump from $21,681 two years prior—far outpacing general inflation. The primary driver was a more than 50% spike in daycare costs. Rising childcare costs are a major factor in the declining U.S. birth rate.

In a March online survey by LendingTree of 630 parents with children under 18, 46% of parents with young children said “financial constraints lead to having fewer children.” Additionally, 77% of parents reported that “raising children costs far more than expected.”
American parents are expected to spend $297,674 to raise a child to adulthood. A bigger issue is that financial support often continues after children reach adulthood. According to a recent Savings.com report, half of parents provide regular financial assistance to their adult children. In LendingTree’s survey, 64% of parents said they “took on debt to support their children’s livelihood.”

The Korean-American community is equally strained by escalating childcare costs. A resident of Diamond Bar, Southern California, named Choi shared, “Preschool tuition in Southern California costs $1,300–$1,500 per month. Once a child enters kindergarten, after-school programs add another $700–$1,000.” He added, “With summer approaching, summer school costs $3,500–$5,000. I briefly considered having a second child but gave up due to high housing prices and childcare costs.”
As a result, birth rates are plummeting. According to the Centers for Disease Control and Prevention (CDC), the 2023 fertility rate was 1.62, the lowest since records began in the 1930s. In 2023, the number of births per 1,000 women aged 15–44 nationwide was 54.5, a 3% drop from 56 the previous year. The total number of newborns fell below 3.6 million.

Worsening job markets, rising housing prices, soaring childcare costs, and persistently high mortgage rates are pushing the median age of homebuyers higher. Last year, the median age of homebuyers was 56, up 11 years from 45 in 2021. Compared to 1981, when the median age was 31, this is a 25-year increase. This reflects a reality where young people struggle to buy homes and start families.
In LendingTree’s survey, when asked what would make raising children easier, most parents (52%) cited “more financial resources,” followed by 39% who wanted flexible work environments like paid leave or remote work. Additionally, 28% of parents said “affordable childcare services would make parenting easier.”