Study: It costs over $200K to raise a child over 18 years in Kentucky

KENTUCKY (FOX 56) — Parenthood can be daunting, and a new study reveals that the expense is no different.

LendingTree said researchers compiled U.S. Census, U.S. Bureau of Labor Statistics, MIT Living Wage Calculator, Price and Cost of Care Report, and tax data to determine the average annual costs associated with raising a small child in a two-earner household in each state. For an in-depth look at its methodology, click here.

35.7% more expensive since 2023 on average

LendingTree’s 2025 report shows that expenses associated with raising a “small child” have jumped 35.7% since their last look at the data in 2023.

Among the tracked categories, child care costs have skyrocketed, rising 51.8%.

In tandem, federal tax credit values have shrunk by 44.4%, according to LendingTree. In 2023, tax credits reportedly waived around $3,600 of total expenditures. But in 2025, the figure is closer to $2,000.

Here’s a cost breakdown.

Category	Cost
Rent	$1,128
Food	$4,216
Daycare	$17,836
Girls apparel	$247
Transportation	$4,383
Health insurance premiums	$3,609
Tax credit	-$2,000
Total annual cost	$29,419

Over 18 years, the average cost adds up to $297,674, including 18 years of rent, food, apparel, transportation, and insurance premiums, and five years of child care.

But this picture can look drastically different in each state.

According to LendingTree, it costs the most to raise a child in Hawaii. Over 18 years, parents in Hawaii spend $362,891 on average due to the high price of food, rent, child care, and transportation.

“While families in these states have some of the highest incomes in the country, they’re also three of the most expensive states to live in,” Matt Schulz, LendingTree chief consumer finance analyst, said. “Higher overall income doesn’t always equate to more expendable income, so it’s important to make sure high-income people are planful and thoughtful with their budgets, too.”

How does Kentucky measure up?

You’re in luck, Kentucky parents. The Commonwealth is actually among those with the lowest average cost of raising a child.

Kentucky ranked 46th out of 51 among the most expensive states to raise a child in annually, preceded by Georgia and followed by South Dakota.

Here’s a breakdown of the annual cost in Kentucky, according to LendingTree:

Child care	Cost
Rent	$1,560
Food	$1,704
Childcare	$9,685
Girls apparel	$224
Transportation	$3,138
Health insurance premiums	$2838
Tax credit	$0
Total annual cost	$19,149

Based on LendingTree’s calculations, this amounts to $218,777 over 18 years. Despite a 14.5% increase from 2023, Kentucky is still among the 10 least expensive states to raise a child in.

Click here for a look at each state’s analysis.