List of most and least affordable metros to raise kids reveals one state parents should avoid: Report
Five of the ten least affordable metros are located in California
Parents can't control inflationary forces, but can control their household: Ken Coleman
America's career coach Ken Coleman joins 'The Big Money Show' to provide advice on childcare costs, cutting spending, and what skills this generation needs most.
An analysis of America’s 100 most populous metropolitan areas has revealed the most and least affordable areas to raise children—with one state where parents may struggle to make ends meet.
Creditnews Research analyzed "living wages for dual-income households with children and without. They then compared how much these households would need to earn to cover expenses.
The study found that the mean annual cost of raising a child across the United States’s 100 most populous metros is approximately $22,989 yearly, or $413,810 until the child turns 18.
A household with two income streams and no children would need to earn a combined income of $64,229 a year to cover basic expenses. This number increases to $91,608 with one child, $114,898 with two, and $133,197 with three kids.
PARENTS FEEL THE PINCH WITH INFLATED BACK-TO-SCHOOL COSTS: 'A NEVER-ENDING NIGHTMARE'
A young mother cares for her baby boy as she participates in a virtual meeting while telecommuting from her home. (iStock / iStock)
"Families with kids have to bring in at least six figures in most major metropolitan areas just to get by—let alone eating out, traveling, and spending on other entertainment," Creditnews Research Senior Analyst Sam Bourgi wrote.
According to the analysis, five of the ten most unaffordable metro areas are in California.
The least affordable metro areas to raise kids are San Diego, California; Bridgeport, Connecticut; San Francisco, California; San Jose, California; and Boston, Massachusetts.
The most affordable metros to raise children are Lakeland, Florida; El Paso, Texas; Jackson, Mississippi; McAllen, Texas; and Wichita, Kansas.
PARENTS PUTTING OFF PAYING BILLS, BUYING GROCERIES FOR BACK-TO-SCHOOL EXPENSES
According to research from JLL and NRF, parents should expect a costly back to school season. (iStock / iStock)
Research published by LendingTree shows that the cost of child care surged nearly 20% between 2016 and 2021, the latest year for which complete data is available. Annual expenses, excluding tax exemptions or credits, hit $21,681 in 2021, versus $18,167 in 2016, the data shows.
Another LendingTree study shows that about 75% of parents think that having and raising children has been far more expensive than they expected. In fact, more than half of parents — about 55% — admit to having gone into debt in order to pay for child-related expenses.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
FOX Business' Megan Henney contributed to this report.
