Parenthood is already expensive, but a new global study shows that things could get tougher for parents. The annual cost of raising a family in the United States could top $82,000 by 2035, according to Remitly's Global Family Inflation Index.
Although the U.S. hasn't seen the steepest percentage increase in these family‐related costs over the past decade compared with some other countries, the absolute expense level is already among the highest.
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What Does This Mean For You?
Childcare, health care and rent are the three major cost drivers in the index. By 2035, the U.S. could see annual childcare costs of approximately $11,398, and average health care spending rising too.
Because the U.S. is projected to be among the most expensive places globally to raise a family, the pressure on parents, including dual earners, single parents and families in high‐cost areas, is only going to grow.
If you have kids, rising parenthood costs mean less financial flexibility and less room in your budget to save for retirement. And if you don't have kids yet but are planning to start a family, this is your reminder to start thinking ahead.
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How to Prepare For Higher Parenthood Costs
The study isn't meant to scare you out of having kids, but it's a heads-up about what things may cost in the next decade. Here's how to prepare for higher parenthood costs.
- Build a budget. If you're planning on starting a family, crunch the numbers to see what your childcare, healthcare, housing and other recurring costs look like. If you can't realistically afford it now, you may want to delay parenthood or figure out ways to increase your income.
- Consider more affordable childcare options. That could mean sharing a nanny with another family, joining a childcare co-op, switching to a more affordable health plan or choosing a neighborhood that's slightly cheaper but still safe and convenient.
- Prioritize savings and emergency funds. Having an emergency fund matters even more when you're a parent. If you haven't already, start putting money away in a high-yield savings account so that you're financially prepared for any medical emergencies or unexpected costs.
- Assess your career. If you're thinking about having kids, ask yourself whether your current job actually supports the life you want. Maybe that means aiming for a higher-paying role or finding something with more flexibility so parenthood doesn't feel so overwhelming.
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