If you are a parent or planning to become one, figuring out childcare is likely at the top of your list. It is no secret that in the U.S., childcare does not come cheap. Depending on where you live, the cost can take a significant chunk out of your budget. We have used the Miami Herald’s survey and rankings to identify 15 states with the highest childcare costs.
Massachusetts
Childcare in Massachusetts costs an average of $21,503 annually, the highest in the nation. The overall expense of raising a child here reaches a staggering $35,841 per year. Urban areas like Boston and Cambridge are particularly expensive due to the high demand for quality childcare services linked to the area’s strong educational environment. Additionally, Massachusetts’ high healthcare and housing costs are major factors that affect family budgets, requiring careful financial planning and consideration.
Hawaii
Living in Hawaii means enjoying beautiful landscapes and a unique cultural environment, but it comes with a hefty price tag, particularly in childcare, which averages $19,592 annually. The total annual cost to raise a child here is $35,049, heavily influenced by the high cost of housing and the additional expense of importing most goods, including food. Families in Hawaii often face unique financial challenges due to the state’s geographical isolation, which significantly affects everyday living expenses.
Connecticut
Connecticut’s childcare costs come in at $19,554 annually, contributing to a total child-rearing expense of $32,803 per year. This state, known for its mixture of coastal cities and rural areas, sees high living costs, especially in counties close to New York City such as Fairfield. The proximity to major urban centers increases commuting and housing costs, which cascades into higher expenses for services like childcare.
Colorado
In Colorado, families pay around $16,620 each year for childcare, with total annual costs for raising a child at $30,425. The state’s appeal, with its stunning landscapes and opportunities for outdoor activities, has attracted many new residents. This influx has driven up the cost of living, particularly in cities like Denver and Boulder, where housing markets have exploded, impacting the affordability of childcare and other essential services.
New York
Childcare expenses in New York hit $17,821 annually, with a total yearly cost of $30,247 to raise a child. The state, particularly New York City, is notorious for its high cost of living, which includes some of the most expensive childcare services in the country. Housing, food, and transportation also contribute to the high costs, making budgeting a critical skill for families residing here.
California
The dream of living in California comes with significant financial considerations, especially for childcare, which averages $14,433 per year. The overall annual cost of raising a child here is about $29,468. Cities like San Francisco and Los Angeles exhibit soaring housing costs and competitive educational environments, which drive up childcare expenses significantly.
New Hampshire
Despite its rural allure, New Hampshire has substantial childcare costs at $13,461 annually, with a total of $27,849 per year per child. The cost of living can be surprisingly high near the more urbanized southern regions and in proximity to Boston, affecting housing and, consequently, the cost of childcare services.
Washington
Washington state sees childcare expenses of $15,463 annually, amounting to a total of $27,806 per year to raise a child. The tech boom, centered in Seattle, has brought wealth but also rising living costs. Housing and educational costs have seen significant hikes, reflecting directly on childcare pricing.
Rhode Island
Rhode Island, though one of the smallest states, has significant childcare costs, averaging $14,498 annually. With a total yearly child-rearing cost of $27,630, living in urban centers like Providence can be surprisingly expensive. The state’s compact size does not offer relief from high costs associated with urban living, including housing and healthcare, which also play a big part in the overall expenses of raising a child.
Minnesota
In Minnesota, childcare costs about $15,722 annually, making the total cost of raising a child $27,406 each year. The Twin Cities, Minneapolis, and St. Paul drive up the average cost with their robust demand for quality childcare linked to an active urban lifestyle and higher education and healthcare standards. Families here need to balance the benefits of vibrant city life with the substantial financial requirements it brings.
Vermont
Vermont, known for its serene landscapes and outdoor lifestyle, sees childcare expenses of $13,956 annually, amounting to a total of $27,170 per year to raise a child. Despite its rural appeal, Vermont faces high costs due to the limited availability of services, which increases competition and prices, particularly in childcare. Healthcare is also notably expensive, with rural areas often lacking in facilities, necessitating travel to larger centers for specialized care, which adds to the overall living costs for families.
Nevada
Nevada’s childcare costs reach $14,968 annually, accumulating to a total child-rearing expense of $26,914 per year. While the state is famed for its entertainment hubs like Las Vegas and Reno, its urban areas are expanding rapidly, bringing a rise in living costs that extends beyond the glitter of the casinos. This growth has spurred demand for more comprehensive childcare services, which, coupled with the higher cost of living in newly developed areas, significantly affects overall family expenses.
New Jersey
In New Jersey, families pay an average of $13,674 annually for childcare, with a total cost of $26,870 per year to raise a child. Situated near major metropolitan areas like New York City and Philadelphia, New Jersey residents face heightened costs as a result of their proximity to these cities. Housing markets here are influenced by the commuter population seeking less expensive living options outside urban centers, which in turn drives up the cost of living, including childcare and other essential services.
Alaska
Childcare in Alaska costs about $13,238 annually, contributing to a total of $26,860 per year to raise a child. Alaska’s unique geographical challenges make it an expensive place to live. The vast distances and remote locations increase transportation costs, not only for goods but also for accessing services, including childcare. Heating expenses are another significant financial factor due to the harsh climate, impacting the overall cost of living and adding to the expenses involved in raising a family in the state.
Oregon
Rounding out our focus, Oregon presents its own financial challenges, with childcare costs averaging $14,000 annually, contributing to a total yearly expense of $26,334 to raise a child. Portland, in particular, has become increasingly popular, influencing the cost of living with higher demands for housing and lifestyle-related expenses. This popularity impacts how families plan their budgets and manage their finances in the face of rising costs.
