Why New Jersey is one of the most expensive states to raise a child

👶 It's very expensive to raise a kid in NJ

👶 Infant daycare costs are off the charts

👶 It's not likely to get better anytime soon

Raising children is not only hard, it’s expensive.

How expensive?

New Jersey is the 11th most expensive state in the U.S. to raise a child, according to a study by LendingTree, which found the 18-year cost to raise a child in the Garden State has surged to $279,862. (This does not include the cost of college, either).

Nationally, families are spending nearly 23% of their yearly income on child-related expenses, up from 19%.

In New Jersey, families are spending 18% of their annual income to raise a child.

"That’s a really big chunk given just how much everything else in life costs,” said LendingTree Analyst Matt Schulz. .

He says it’s not likely to get better anytime soon because everything has gone up at an alarming rate of the past few years.

The study looked at several costs that go into raising a child across several states to come up with its findings. These include rent, food, day care, apparel, transportation, health insurance premiums, and state tax exemptions or credits, Schulz said.

New Jersey ranked very high in terms of infant day care---seven times higher than the rest of the country, costing about $20,000 a year per child, Schulz said.

Kids’ clothing is also very expensive in New Jersey, with families spending about $300 per child every year, he added.

However, New Jersey did well in the transportation category thanks to public transport, costing about $2,900 per year.

But when you add it all up, New Jersey families are shelling out, on average, nearly $30,000 per year per child, the 7th highest in the country, Schulz explained.

Annual NJ Breakdown for Raising a Child

• Rent - $1,944 per child
• Food - $2,068 per child
• Infant Day Care - $19,634 per child
• Clothing - $269 per child
• Transportation - $2,935 per child
• Health Insurance Premiums - $2,961 per child

Schulz said it’s important with all of these costs for people to get their financial foundation as stable as possible, by doing things like paying down high-interest debt and building up their emergency fund.

“I know it���s easier said than done, but the better off you are when it comes to those things, the more financial wiggle room you have to deal with higher costs and inflation and unexpected things that may come your way,” Schulz said.

Hawaii is the most expensive state to raise a child, according to the report and Mississippi is the cheapest.

To see the full report and the rankings broken down state-by-state, visit here.

Report a correction | Contact our newsroom