4 in 5 Parents Say Child-Rearing Costs Are Rising, 2 in 5 Say Finances Are Limiting Family Size

Written by  Maggie Davis

Edited by  Dan Shepard

+ 1 More

Updated Apr 27, 2026

Raising kids has never been cheap, but it’s becoming increasingly out of reach for many families today.

More than 8 in 10 (82%) parents of children younger than 18 say having and raising kids has gotten more expensive in the past year, according to a LendingTree survey of parents. 

The financial pressure is already changing family sizes for many, as 44% say they have fewer children because they can’t afford more.

82% of parents with young children believe it’s gotten more expensive recently

Rising costs are forcing many parents to rethink not just their budgets, but their family plans. More than 8 in 10 (82%) parents with children younger than 18 say having and raising kids has become more expensive over the past year, with 54% strongly agreeing.

That financial strain is shaping real decisions. In total, 44% say they have fewer children due to financial constraints — although family sizes are relatively modest for most, with 41% of parents having two children and 37% having one. Additionally: 

Meanwhile, 61% feel pressure to overspend on their kids to keep up with other families. That’s up from 56% when we conducted this survey last year. A significant 35% say they weren’t financially prepared to become parents, including 49% of women. And although 65% report having an emergency fund for unexpected child-related expenses, 35% don’t.

Parents believe money would make parenting easier 

For most parents, more money would go a long way toward easing the challenges of raising kids. A whopping 90% of parents say being a parent would be easier if they had more money.

That sentiment isn’t surprising given the costs. Among parents, 77% say having and raising kids has been far more expensive than they expected. As far as costs go, more than half (55%) spend at least $1,000 a month on child-related expenses. To break that down: 

With those hefty costs in mind, 64% of parents have gone into debt to cover those costs. And 26% still carry some of it — up from 21% last year.

While that may feel concerning, Matt Schulz — LendingTree chief consumer finance analyst and author of “Ask Questions, Save Money, Make More: How to Take Control of Your Financial Life” — says not all debt is bad. 

“Good debt is debt that gives a strong return on investment, and that return doesn’t always have to be financial,” he says. “Taking on debt to put your kid in a great school, for example, can be seen as good debt because of the long-term benefits of the education the child receives. Still, the key to good debt is moderation. There’s a big difference between taking on a few months of debt in pursuit of a goal or a dream and saddling yourself with crippling debt for years.”

One of the best ways to manage or avoid taking on too much debt is by maintaining a budget and carefully prioritizing your spending. “Some see budgets as overly confining, but a well-made budget can be freeing because it gives you the flexibility to adjust easily,” Schulz says. “If you overspend in a given month or if a big expense costs more than you expect, you can return to your budget and shift some of your spending to free up cash to cover the overage.”

When it comes to what would make things easier, parents most often point to increased financial resources like higher income (59%), followed by lower housing costs (34%) and a more supportive co-parent or partner (24%). Parents also cite:

Future education and food are the biggest strains

The financial strain of raising children extends well beyond everyday essentials. Parents most often point to saving for college or future education (15%) as their biggest child-related expense, slightly ahead of food (14%), followed by extracurricular activities (9%) and clothing (9%).

With costs adding up, many families are looking for ways to cut back. In total, 70% of parents say they plan to reduce child-related spending within the next year, with the most common pullbacks targeting toys and entertainment (27%), clothing (23%) and travel (23%). Other pullbacks include: 

Given that future education, food and extracurriculars are among the top cost drivers, Schulz says parents need to build both long-term and short-term savings into their regular budgets. “Sure, there will be months where you won’t be able to put in more than a few dollars toward your savings, but even those small amounts will add up over time when done consistently,” he says. “If you include savings into your budget, you’re able to treat it just like any other important spending category, helping ensure that you’ll keep it up.”

These financial pressures are also reshaping how families celebrate milestones. More than half (56%) say they’ve skipped or scaled back celebrations due to the cost of raising children. Among those who have done so, the most common cutbacks include birthday parties (48%), extracurricular activities or competitions (38%), holiday gatherings or traditions (37%) and graduations (34%). That’s followed by: 

81% believe the government should do more to subsidize child care costs

Parents are also looking beyond their own budgets for solutions, with many calling for greater support for child care. In total, 81% of parents agree the government should do more to subsidize child care costs, with 51% strongly agreeing.

The U.S. government already provides some support to help families afford child care, primarily through subsidies and tax credits such as the Child and Dependent Care Credit. Also of note, the Child Care and Development Fund (CCDF) gives states federal funding to help low-income families pay for care so parents can work or look for work. Families may also benefit from programs like Head Start and Early Head Start, which offer free comprehensive early childhood education and care services to eligible households.

Still, access is limited, and only a fraction of eligible families receive aid — leaving many to cover most child care costs on their own.

The high cost of care is also affecting workforce participation. More than half (58%) say they or someone they know has wanted to return to work after having a child but chose not to because child care was too expensive. That’s especially true among low earners, at 64% among those earning $30,000 to $49,999. 

Schulz says high child care costs can dramatically affect parents’ ability to work. 

“They often keep parents from returning to the workforce after their child is born,” he says. “In many cases, the parents’ salary would do little more than cover the cost of child care, so it doesn’t make much financial sense for the parent to pursue work outside the home. Many parents have faced this dilemma for generations, but skyrocketing child care prices likely make this problem feel more challenging than ever for new parents.”

In fact, infant day care costs an average of $17,264 in 2026, according to a LendingTree study on the costs of raising a child.

Using credit cards to manage everyday expenses: Top expert tips

As everyday expenses climb, more parents are turning to credit cards to help bridge the gap. While relying on credit can be risky if balances spiral, it can also be a useful short-term tool when managed carefully. Schulz believes the key is knowing how to use credit strategically. Here’s what we recommend: 

Methodology

LendingTree commissioned QuestionPro to conduct an online survey of 634 U.S. parents ages 18 to 80 with children younger than 18 on March 17-23, 2026. The survey was administered using a nonprobability-based sample, and quotas were used to ensure the sample base represented the overall population. Researchers reviewed all responses for quality control. 

We defined generations as the following ages in 2026:

Generation Z and baby boomer respondents are included in the total sample but aren’t analyzed separately due to small sample sizes.