Money Matters - Child-rearing Costs and Inflation

 Child-rearing costs are accelerating faster than inflation, a sign that family budgets are under structural — not temporary — pressure. A new SmartAsset study finds the annual cost of raising a child has increased 4.5% since 2024, now topping $27,000.  

Among the study’s other key findings:

• Massachusetts is the most expensive state in which to raise a child, with the annual cost of raising a preschooler more than $44,000.
• In Vermont, the cost of raising a child has jumped an eye-popping 25% — the largest year-over-year increase of any state.
• For lucky parents in 10 states, the cost of raising a preschooler actually declined. Delaware, for instance, saw a 16% decrease in the cost of child-rearing. 

See the full results and how each state compares: https://smartasset.com/data-studies/cost-raise-child-state-2025.