For previous generations, raising a large family on one salary was often considered achievable. Today, many younger adults are discovering that even two incomes may not be enough to comfortably afford one child, as housing, debt and childcare costs consume more of their budgets.
A recent Business Insider personal essay captures the generational divide in its headline: “My parents raised 6 kids on one salary. My husband and I can’t afford one baby on 2.” The author describes how student loans, mortgage payments and limited savings have made parenthood feel financially out of reach.
Childcare is a particularly significant obstacle. The author estimates that care in Minnesota costs approximately $15,000 annually, illustrating how a single expense can complicate plans to start a family.
The Rising Cost of Raising Children in the U.S.
The financial pressure extends well beyond individual households. A 2026 SmartAsset study found that estimated annual child-rearing costs vary dramatically across 48 major U.S. metropolitan areas.
San Francisco ranked as the most expensive metro, at $43,171 annually, while Memphis was the least expensive at $19,922. These estimates cover additional expenses associated with childcare, food, housing, healthcare, transportation and other necessities.
Costs are also rising quickly in some cities. Indianapolis experienced a 20.77% increase between 2025 and 2026, showing how quickly family budgets can come under pressure even when parents are already working.
Family Costs Are Rising Around the World
The affordability challenge is not limited to American families. Remitly’s Global Family Inflation Index reports that “housing, education, and childcare costs have risen worldwide,” forcing many young adults to reconsider when—or whether—to have children.
The study found that family costs rose by 110% in Hungary, 99% in Portugal and 78% in Spain over the period analysed. Australia recorded a 112% increase in childcare costs relative to local salaries, highlighting how expenses can outpace families’ ability to pay.
Looking ahead, Remitly projects that the U.S. could become the world’s most expensive country in which to raise a family by 2035. As costs rise across borders, affordable childcare, housing and stronger family support policies will remain essential to making parenthood financially achievable.
