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Top 10 States Where Childcare Costs Now Exceed Rent

June 1, 2025 | Leave a Comment

Top 10 States Where Childcare Costs Now Exceed Rent

For families across the U.S., the rising price of childcare is more than an inconvenience—it’s a crisis. In some states, childcare costs have officially surpassed rent, making it harder for parents to balance their budgets, plan for the future, or even stay in the workforce. With infant care rivaling mortgage payments and daycare fees draining entire paychecks, families are being forced to make difficult choices about their careers, finances, and living situations. If you’re wondering whether your state is one of the hardest hit, these numbers will give you a clearer picture—and possibly a serious case of sticker shock.

1. Massachusetts

Massachusetts consistently ranks among the most expensive states for both housing and childcare costs, but in recent years, childcare has taken the lead. The average annual cost for infant care exceeds $26,000, while the median rent for a two-bedroom apartment falls just below that. Dual-income households often find that one paycheck goes entirely toward daycare expenses. For single parents, affording childcare without assistance is nearly impossible. Despite statewide efforts to expand early childhood funding, the gap continues to grow.

2. California

In California, the average monthly cost of full-time infant care can top $1,800, while many families in the most affordable suburban and rural areas pay far less in rent. The state’s high cost of living is no secret, but the added burden of childcare costs pushes many parents to rely on grandparents, unlicensed caregivers, or reduce work hours. Urban centers like San Francisco and Los Angeles are especially impacted, with care centers charging premium rates and long waitlists. The struggle between affording childcare or housing isn’t hypothetical—it’s happening daily for thousands of families.

3. New York

In many parts of New York, particularly upstate or in suburban areas, rent is significantly lower than what families pay for childcare. Infant care averages over $1,400 a month, while rents in cities like Albany or Rochester can be hundreds of dollars less. Even in New York City, where both rent and care costs are sky-high, some families report spending more on daycare than on their mortgage or rent. The financial stress has pushed many parents to delay returning to work or seek under-the-table childcare arrangements. Despite being a hub for policy innovation, the affordability crisis remains unchecked.

4. Oregon

Oregon is another state where families are feeling the pinch, with childcare costs outpacing rent in many regions. Infant care can cost upwards of $19,000 per year, while the average rent for a two-bedroom apartment is slightly lower. The shortage of licensed providers adds another layer of stress, forcing parents to settle for costlier or less convenient options. In rural communities, families may have to drive over an hour for care that still drains their budget. Oregon parents are pushing for more accessible subsidies, but the demand still outweighs the supply.

5. Washington

In Washington, especially in areas like Seattle, the cost of childcare far outpaces what many families spend on rent. Infant care routinely exceeds $1,700 per month, while average rental prices in more affordable regions remain below that threshold. This imbalance has made it difficult for middle-income families to thrive, despite earning more than minimum wage. Many working parents find themselves ineligible for subsidies but unable to cover expenses without going into debt. It’s a classic example of being financially stable on paper, but drowning in reality.

6. Vermont

Despite its reputation for progressive policies, Vermont’s childcare costs are surprisingly steep. Families with infants pay over $18,000 annually for care, more than what the average household spends on housing. The state has made efforts to subsidize early education, but many families still fall through the cracks. The lack of available providers adds competition and drives prices even higher. In Vermont, quality care exists—but only if you can afford it.

7. Colorado

Colorado families are facing a widening affordability gap as rent stabilizes but childcare costs continue to rise. The average cost for infant care in the state is just under $1,850 per month, exceeding rent in many suburban and mountain towns. Areas like Boulder and Denver are particularly difficult, where long waitlists and staffing shortages drive prices even higher. Parents often face the impossible choice between career advancement and staying home to care for children. The state has introduced pilot programs, but most families are still feeling the squeeze.

8. Minnesota

Minnesota has one of the highest childcare costs in the Midwest, with families often paying more than $22,000 per year for infant care. Compared to average rent across the state, which is notably lower in rural and suburban areas, childcare takes the financial lead. Many parents describe feeling punished for working, as most of their income vanishes into daycare fees. While state assistance programs exist, they don’t cover middle-income families who still struggle to make ends meet. It’s a growing problem with no simple fix.

9. Connecticut

In Connecticut, childcare costs regularly exceed rent, especially in more affordable parts of the state. Parents pay around $1,650 per month for full-time infant care, with average rent in some areas being notably below that figure. The high cost of living, combined with stagnant wages and limited childcare options, has left many families in a bind. Even well-off households feel the burden when adding multiple children into the mix. For many, it’s not a question of whether to cut costs—it’s where.

10. Hawaii

Living in paradise comes with a steep price, especially for families with young children. In Hawaii, average infant childcare costs are nearly $1,800 per month, which rivals or exceeds rent in many local communities. With a limited number of licensed providers and high living expenses overall, families often rely on informal care networks or reduce working hours. Some even move off-island due to affordability concerns. In Hawaii, the cost of care affects not just budgets, but entire life decisions.

When Rent Isn’t the Biggest Bill

If you thought rent was your largest monthly expense, childcare may have already passed it—quietly and consistently. The rising cost of care doesn’t just affect families’ wallets. It shapes how they work, live, and grow. These ten states are just the start of a national pattern that demands more attention, better policy, and real support for working parents. Until that happens, families will keep facing impossible trade-offs.

Do childcare costs exceed your rent? How are you navigating the financial pressure? Share your experience in the comments—we want to hear from you.

Read More:

Parents Are Burning Out Trying to Afford ‘Good’ Childcare

Why Some Parents Are Giving Up Childcare Altogether

Catherine Reed
Catherine Reed

Catherine is a tech-savvy writer who has focused on the personal finance space for more than eight years. She has a Bachelor’s in Information Technology and enjoys showcasing how tech can simplify everyday personal finance tasks like budgeting, spending tracking, and planning for the future. Additionally, she’s explored the ins and outs of the world of side hustles and loves to share what she’s learned along the way. When she’s not working, you can find her relaxing at home in the Pacific Northwest with her two cats or enjoying a cup of coffee at her neighborhood cafe.

Filed Under: Budgeting Tagged With: Affordable Childcare, childcare costs, Cost of Living, Family Finance, parenting challenges, rent vs childcare, State Comparisons, working parents

Skip These 7 Expenses If You’re Raising Kids on a Tight Budget

May 30, 2025 | Leave a Comment

Skip These 7 Expenses If Youre Raising Kids on a Tight Budget

Raising kids is rewarding—but let’s be honest, it’s also expensive. And when you’re raising kids on a tight budget, every dollar has to stretch just a little further. The good news? Not everything your kids “need” actually needs to be on your shopping list. Some common purchases sound like must-haves but can quietly drain your wallet without adding much value. Here are seven expenses worth skipping so you can focus on what really matters without breaking the bank.

1. Brand-New Clothes for Every Growth Spurt

Children grow quickly, and keeping up with their changing sizes can feel like a full-time job. But shelling out for brand-new clothes every season isn’t necessary—especially when perfectly good secondhand options exist. Consignment shops, thrift stores, and hand-me-downs from friends or family can save you hundreds each year. Many kids outgrow their clothes before they even wear them out. When raising kids on a tight budget, buying used just makes sense—and your wallet will thank you.

2. Expensive Birthday Parties

Big parties at trampoline parks, arcades, or themed venues are fun but often come with price tags that rival a monthly rent payment. While it’s tempting to go all out to celebrate your child, kids don’t need an extravagant bash to feel special. A backyard party, community park picnic, or simple movie night with a few close friends can be just as memorable. Homemade cakes, DIY games, and dollar store decorations can go a long way. Keeping birthdays budget-friendly doesn’t mean cutting corners—it means making smart, intentional choices.

3. Subscription Boxes for Kids

The market is flooded with monthly boxes for crafts, books, STEM activities, and toys. While they may sound enriching, these subscriptions often cost $20 to $40 per month—or more—and can quickly become clutter you don’t need. Kids might enjoy them for a day or two, but they rarely get long-term use. Instead, check out free resources from your local library or create your own activity kits using supplies you already have. Skipping these add-ons is a smart move when raising kids on a tight budget.

4. Trendy Baby Gear

That wipe warmer, diaper pail with custom liners, or $300 smart bassinet might look appealing, but most of it is more “nice to have” than “need to have.” Marketers are excellent at convincing parents that more stuff equals better parenting, but many baby products end up collecting dust. Stick with the essentials: a safe car seat, crib, diapers, and a few quality outfits. If you’re unsure, borrow or buy secondhand to test what actually works for your lifestyle. Raising kids on a tight budget means separating marketing hype from real-life functionality.

5. Premium Cable or Streaming Services

It’s easy to justify that extra streaming bundle because “the kids love it,” but these monthly charges can quietly pile up. When you’re juggling Netflix, Disney+, Hulu, and more, you might be spending $50 to $100 each month on entertainment alone. Try limiting your subscriptions to one at a time or using free platforms like PBS Kids or library media apps. Not only does this reduce costs, it also encourages more intentional screen time. Budget entertainment doesn’t have to mean boring—it just means getting creative.

6. School Fundraiser Overkill

Supporting your child’s school is important, but some fundraisers feel never-ending—and expensive. Between cookie dough, T-shirt sales, and “restaurant nights,” the pressure to participate can be overwhelming. Set a yearly giving budget and find other ways to support the school, like volunteering or donating supplies. Teachers understand that not every family can give cash at every turn. When raising kids on a tight budget, every dollar counts—and it’s okay to say no sometimes.

7. The Latest Tech Gadgets

From tablets and smartphones to smartwatches and gaming consoles, the tech requests can feel nonstop. But just because “everyone else has one” doesn’t mean your child needs it—especially if it’s outside your budget. Focus on tools that support learning or communication, and set clear boundaries around tech use. Consider refurbished or older models, and avoid expensive upgrades unless absolutely necessary. Managing expectations early can prevent the “gotta have it” trap from draining your finances.

Prioritizing What Matters Most

When you’re raising kids on a tight budget, saying “no” to certain expenses is really saying “yes” to your long-term goals. It’s about cutting the fluff so you can invest in what really matters—your child’s well-being, your financial peace of mind, and the values you want to pass on. You don’t need the flashiest gadgets, the trendiest birthday parties, or the latest baby gear to raise happy, thriving kids. Sometimes, the simplest things bring the greatest joy.

What expenses have you cut back on while raising kids on a tight budget? Share your tips and swaps in the comments—we’d love to learn from your experience!

Read More:

6 Times Parents Should Say “I Can’t Afford That” Out Loud

Why Some Parents Are Going Into Debt to Hide Financial Struggles From Their Kids

Catherine Reed
Catherine Reed

Catherine is a tech-savvy writer who has focused on the personal finance space for more than eight years. She has a Bachelor’s in Information Technology and enjoys showcasing how tech can simplify everyday personal finance tasks like budgeting, spending tracking, and planning for the future. Additionally, she’s explored the ins and outs of the world of side hustles and loves to share what she’s learned along the way. When she’s not working, you can find her relaxing at home in the Pacific Northwest with her two cats or enjoying a cup of coffee at her neighborhood cafe.

Filed Under: Budgeting Tagged With: budget hacks, cutting expenses, Family Budgeting, Family Finance, frugal parenting, money-saving tips, parenting on a budget, raising kids on a tight budget, saving money with kids

The Real Cost of Raising a Child—It’s Not $250,000 Anymore

May 29, 2025 | Leave a Comment

The Real Cost of Raising a Child Its Not 250000 Anymore

If you’ve been clinging to that long-quoted statistic that the cost of raising a child is around $250,000, brace yourself—it’s wildly outdated. Between inflation, housing spikes, and the rising cost of childcare and education, today’s families are facing a much steeper bill. Whether you’re a new parent or planning your family’s future, understanding the real cost of raising a child is crucial to budgeting, saving, and staying financially stable. And while the price tag may be higher than expected, knowing where the money goes can help you take smarter steps forward. Let’s break down what’s changed, what’s growing fastest, and how to plan for it all.

1. Housing Is Now the Largest Expense

The cost of raising a child has shifted in recent years, with housing taking the lead as the biggest financial strain. Larger homes, safe neighborhoods, and proximity to good schools often come with hefty price tags. Many families find themselves moving or upgrading simply to make space for a growing child, increasing mortgage or rent by hundreds of dollars a month. Add in higher utility bills, more furniture, and constant repairs, and housing costs account for nearly one-third of total child-rearing expenses. It’s not just about space—it’s about the lifestyle that space demands.

2. Childcare Is Breaking Budgets Nationwide

Full-time childcare is now rivaling college tuition in many parts of the country. Depending on where you live, daycare alone can run between $6,000 and $22,000 per year per child. For families with two working parents, childcare becomes a non-negotiable—but an incredibly costly—part of life. Even part-time care, after-school programs, and summer camps can pile up quickly. The cost of raising a child no longer allows much wiggle room when childcare becomes a second rent payment.

3. Food Prices Aren’t Just an Adult Problem

Once your baby graduates from formula and purées, the grocery bill can grow just as fast as they do. Kids eat more than you’d expect—especially during growth spurts—and picky eaters can drive up the cost with special requests and food waste. Add in school lunches, snacks, and occasional dining out, and your monthly food budget might start to rival your car payment. Families are feeling the impact of rising grocery prices in ways that make budgeting harder than ever. Feeding a child today is a far cry from tossing a few extra items in the cart.

4. Healthcare Costs Are Rising—Even With Insurance

Doctor visits, dental cleanings, braces, prescriptions, and emergency room trips all add up over the years. Even families with good insurance face steep deductibles, copays, and uncovered expenses like vision care or mental health therapy. Health-related costs remain one of the most unpredictable parts of the cost of raising a child. And with more families needing specialized care for developmental or behavioral issues, many are budgeting for therapy as early as preschool. One accident or diagnosis can double your health-related spending overnight.

5. Education Comes With Hidden Fees

Public school may be free, but that doesn’t mean it’s cheap. School supplies, field trips, sports fees, uniforms, fundraising, and extracurriculars can eat up thousands over the course of a child’s K–12 experience. And if you’re planning for college? Tack on an additional $38,270 per year in college, depending on the school and financial aid options. Even before your child picks a major, the education portion of the cost of raising a child is a financial force to be reckoned with. And yes, private school or tutoring? That’s a whole other level of expense.

6. Technology Is Now a Basic Need

Gone are the days when a child needed only pencils and notebooks to succeed in school. Now, tablets, laptops, smartphones, and reliable internet are essential tools for learning, communication, and social development. Parents are also covering monthly service plans, data charges, software subscriptions, and constant device upgrades. Technology isn’t a luxury—it’s part of the modern parenting toolkit. It’s a new line item in the cost of raising a child, and one that keeps evolving with every app update and school requirement.

The Number May Be Higher, But So Is Your Awareness

Yes, the cost of raising a child today can easily exceed $300,000 by the time they turn 18—and that’s before college. But knowing what to expect helps you plan smarter, spend wiser, and advocate for policies that support families better. Budgeting intentionally, rethinking what’s truly necessary, and focusing on long-term priorities can go a long way. Kids are expensive, but they’re also worth every penny—and with a little strategy, you can make it all work. Awareness is the first step to peace of mind.

What unexpected costs caught you off guard when raising your child? Share your experience and tips for managing the cost of raising a child in the comments!

Read More:

6 Reasons Stay-at-Home Parenting Isn’t the Budget Saver It’s Made Out to Be

Unplanned Children: Here’s What That Unexpected Child Is Going to Cost You

Catherine Reed
Catherine Reed

Catherine is a tech-savvy writer who has focused on the personal finance space for more than eight years. She has a Bachelor’s in Information Technology and enjoys showcasing how tech can simplify everyday personal finance tasks like budgeting, spending tracking, and planning for the future. Additionally, she’s explored the ins and outs of the world of side hustles and loves to share what she’s learned along the way. When she’s not working, you can find her relaxing at home in the Pacific Northwest with her two cats or enjoying a cup of coffee at her neighborhood cafe.

Filed Under: Finances Tagged With: childcare costs, cost of raising a child, family expenses, Family Finance, food costs, healthcare for kids, parenting budget, parenting tips, school expenses

Skip These 7 Expenses That Are Quietly Wrecking Your Family Budget

May 29, 2025 | Leave a Comment

Skip These 7 Expenses That Are Quietly Wrecking Your Family Budget

You know the big stuff—mortgage, groceries, childcare—but what about the sneaky spending that slips through the cracks each month? Even the most budget-conscious families can be tripped up by recurring costs that feel harmless but quickly spiral out of control. These are the expenses that are quietly wrecking your family budget, and if you don’t catch them early, they can undo your savings goals and drain your peace of mind. The good news? A few small adjustments can stop the leaks and help you take back control. Let’s break down the culprits so you can start keeping more of your hard-earned money.

1. App Subscriptions You Forgot You Had

It’s shockingly easy to lose track of app subscriptions, especially when they start as free trials. From educational tools to fitness trackers, these tiny monthly charges can add up to hundreds per year. Families often sign up for apps for the kids, only to realize they’re no longer using them—or never used them much at all. Take five minutes each month to scan your credit card or app store purchases and cancel what’s no longer needed. If it’s not adding value to your routine, it’s likely one of the expenses that are quietly wrecking your family budget.

2. Convenience Food That Adds Up Fast

It’s understandable—everyone’s tired, time is short, and a drive-thru meal feels like a life-saver. But leaning on convenience food more than a few times a week can become a major drain. Pre-packaged snacks, takeout meals, and even grocery store hot bars often cost significantly more than homemade alternatives. Plus, you may be sacrificing nutritional value while you’re at it. Cooking in bulk and prepping snacks ahead of time is a great way to reclaim your budget without sacrificing sanity.

3. Buying Kids’ Clothes Too Far Ahead

It’s tempting to stock up on clearance racks a year in advance, but kids grow unpredictably—and sometimes seemingly skip sizes entirely. If you’re buying loads of clothes ahead of time, chances are some of them will never even be worn. That’s money down the drain, plus clutter in your closets. Stick to versatile basics or only buy ahead when you’re sure of sizing and season. Otherwise, this “smart” strategy becomes one of the expenses that are quietly wrecking your family budget.

4. School Fundraisers You Feel Guilted Into

Supporting your child’s school is important, but it’s also okay to set limits. Between cookie dough sales, school spirit nights at restaurants, and endless raffle tickets, the pressure can build fast. If you’re spending out of obligation or guilt rather than actual desire, it’s worth rethinking your approach. Set a yearly donation budget and stick to it—your support doesn’t have to be financial to be valuable. Saying “no” to unnecessary spending is one of the best ways to protect your finances.

5. Premium TV and Streaming Packages

The convenience of streaming means many families now juggle five or more platforms—and still pay for cable. It starts as a $9.99 indulgence but becomes a $65+ monthly expense in no time. Chances are, you’re not watching even half of what you’re paying for. Trim the fat by canceling unused services and rotating platforms every few months to avoid binge fatigue and overbilling. Entertainment shouldn’t be one of the expenses that are quietly wrecking your family budget.

6. Fancy Coffee and On-the-Go Drinks

Grabbing a coffee on the way to school drop-off or after soccer practice seems harmless—but multiply that by five days a week, and you’re looking at a hefty monthly tab. Same goes for smoothies, bottled teas, and “quick stop” hydration that costs more than lunch. If everyone in the family gets in on the habit, it’s a recipe for budget chaos. Consider investing in reusable mugs and making drinks at home. The savings will add up faster than you think.

7. Over-the-Top Birthday Parties

No one wants to be the “boring” parent, but the pressure to throw Instagram-worthy birthday parties is real. Between themed decorations, expensive venues, party favors, and custom cakes, a single celebration can cost as much as a weekend getaway. Kids remember fun and love—not the budget. Planning smaller, more meaningful parties can save hundreds without sacrificing joy. These kinds of recurring blowouts are often overlooked expenses that are quietly wrecking your family budget.

The Power of a Conscious Budget

You don’t need to sacrifice joy or comfort to keep your family’s finances healthy. Often, the biggest impact comes from the smallest changes. By spotting these sneaky spending habits and cutting back where it counts, you’re not just saving money—you’re setting an example of mindful money management for your kids. Keep what truly serves your family and ditch the rest. You’ll breathe easier, plan better, and feel more confident about your financial future.

Which of these sneaky budget wreckers have you noticed in your own household? Share your experience—or your own budget-saving tips—in the comments!

Read More:

How “Mom vs. Dad” Spending Arguments Destroy Family Budgets

5 Surprising Ways Kids Are Secretly Spending Your Money Without You Knowing

Catherine Reed
Catherine Reed

Catherine is a tech-savvy writer who has focused on the personal finance space for more than eight years. She has a Bachelor’s in Information Technology and enjoys showcasing how tech can simplify everyday personal finance tasks like budgeting, spending tracking, and planning for the future. Additionally, she’s explored the ins and outs of the world of side hustles and loves to share what she’s learned along the way. When she’s not working, you can find her relaxing at home in the Pacific Northwest with her two cats or enjoying a cup of coffee at her neighborhood cafe.

Filed Under: Budgeting Tagged With: Family Budgeting, Family Finance, financial planning, hidden expenses, kids and money, money-saving strategies, overspending warning signs, parenting budget tips, Saving Tips

Here’s What It Cost to Raise a Child in 2020

May 11, 2025 | Leave a Comment

Cost to Raise a Child in 2020

2020 changed almost everything, including how much it costs to raise a child. From remote learning and rising food prices to juggling work-from-home life and unexpected childcare gaps, parents felt the financial pressure more than ever. While previous years followed more predictable spending trends, 2020 threw curveballs that reshaped family budgets in real-time. But what did it actually cost to raise a child during one of the most unpredictable years in recent memory? Let’s break down the numbers and explore where the money really went in 2020.

1. The Average Cost Was Around $233,610—Before the Pandemic Extras

According to the U.S. Department of Agriculture’s latest available data before 2020, it cost roughly $233,610 to raise a child from birth through age 17 for a middle-income, two-parent household. That’s about $13,741 per year, per child—not including college tuition. But when the pandemic hit, many families saw spikes in certain categories that made that number feel low. From higher grocery bills to at-home schooling costs, the “new normal” brought new expenses. While official adjusted numbers for 2020 weren’t immediately available, the reality for families often went well beyond projections.

2. Grocery Bills Went Up—A Lot

With everyone at home for months at a time, families experienced a major jump in food expenses. Kids who usually ate breakfast or lunch at school were now eating every meal at home, and those costs added up fast. According to the Bureau of Labor Statistics, grocery prices rose by 3.5% in 2020, the largest increase since 2011. Staples like meat, eggs, and dairy saw especially sharp price hikes. Even if you planned meals carefully, the cost of raising a child in 2020 definitely included extra snack runs and grocery store trips.

3. Childcare Became a Chaotic Line Item

Many daycares closed temporarily or operated under limited capacity, forcing parents to either scramble for alternatives or juggle full-time childcare while working remotely. Some families paid for part-time sitters, private learning pods, or tutors to help manage distance learning. Others had to cut back work hours, creating a hidden financial toll. Even families who saved on formal daycare still felt the impact through lost productivity and burnout. The flexibility came at a steep price—one not always measured in dollars.

4. Technology Costs Skyrocketed

Virtual learning turned every kitchen table into a classroom and every child into a tech user overnight. Parents spent hundreds on laptops, tablets, headsets, upgraded internet plans, and learning software. Even families with school-issued devices often bought extras to make home learning smoother. When multiple kids needed simultaneous access, many households invested in additional equipment just to keep up. For most families, this category didn’t even exist before, but in 2020, it became essential to the cost of raising a child.

5. Healthcare Costs Stayed High—Even Without Doctor Visits

While routine visits and elective procedures decreased, many families still saw high out-of-pocket healthcare costs in 2020. Insurance premiums didn’t pause for the pandemic, and unexpected COVID-related visits added to the burden. Parents also stocked up on over-the-counter medications, thermometers, and sanitizing products just to be prepared. Mental health services for kids and teens became another unexpected line item, especially with so many struggling in isolation. Healthcare remained one of the year’s most unpredictable—and unavoidable—expenses.

6. Entertainment and Activity Budgets Shifted

Extracurriculars, sports leagues, and playdates disappeared overnight, which should have saved money, but families quickly replaced them with other at-home alternatives. From backyard upgrades to subscriptions for streaming, learning apps, and DIY craft kits, parents found new ways to keep kids busy. Many families also invested in bikes, scooters, trampolines, or home gym equipment to burn off energy. While some of these purchases were one-time, they represented a meaningful change in how families spent money to stay sane indoors.

7. Clothing Costs Decreased—But Only Temporarily

One silver lining? Many parents reported spending less on clothes in 2020. With schools, sports, and events canceled, there was less need for “real” outfits and shoes. Pajamas and stretchy pants reigned supreme for months. But once things began reopening or hybrid learning started, kids had outgrown nearly everything, forcing families to play catch-up with entire wardrobes. In the long run, it evened out for many, just spaced out differently than usual.

Raising a Child in 2020 Meant More Than Budgeting

Yes, 2020 came with higher price tags in some categories and lower ones in others—but the emotional cost was just as real. Parents had to stretch every dollar, every hour, and every ounce of patience. The cost of raising a child in 2020 wasn’t just about money—it was about flexibility, sacrifice, and resilience. If you made it through with your sanity (mostly) intact, give yourself credit. You didn’t just raise your child—you raised your game.

How did your family’s spending shift in 2020? What surprised you most about raising a child during that year? Share your story in the comments!

Read More:

Here’s What It Cost to Raise A Child In 1980

Here’s What It Cost to Raise A Child in The Year 2000

Catherine Reed
Catherine Reed

Catherine is a tech-savvy writer who has focused on the personal finance space for more than eight years. She has a Bachelor’s in Information Technology and enjoys showcasing how tech can simplify everyday personal finance tasks like budgeting, spending tracking, and planning for the future. Additionally, she’s explored the ins and outs of the world of side hustles and loves to share what she’s learned along the way. When she’s not working, you can find her relaxing at home in the Pacific Northwest with her two cats or enjoying a cup of coffee at her neighborhood cafe.

Filed Under: Budgeting Tagged With: child care costs 2020, cost of raising a child, Family Finance, grocery budget, kids and technology, pandemic parenting, parenting during COVID, parenting expenses, remote learning

8 Risks We Never Think About When Leaving Trusts For Children

April 29, 2025 | Leave a Comment

mom and dad walking with baby
Image Source: Unsplash

Most parents create a trust with pure intentions: to shield assets, avoid probate, and ensure kids are financially secure. But trusts aren’t one-size-fits-all instruments—you must weigh tax laws, beneficiary maturity, and family dynamics long before documents are signed.

Small oversights now can morph into costly disputes, frozen funds, or squandered inheritances later. Because trustees, courts, and even your children’s future spouses all play roles in how money is managed, every clause matters. Before you check “open a trust” off your list, consider the lesser-known risks hiding between the legal lines.

1. Age-Based Distributions Can Backfire

Trusts often release funds when a child hits predetermined ages—say 25, 30, 35—but maturity isn’t tied to birthdays. If your 25-year-old inherits a lump sum yet lacks money management skills, they may splurge or fall prey to financial predators. A better approach: stagger smaller distributions tied to milestones (graduation, home purchase) and include “spendthrift” provisions that protect assets from creditors and impulsive decisions.

2. Too Much Control in the Wrong Hands

Parents frequently appoint a close relative as trustee, assuming love equals competency. Yet trustees must understand investments, tax filings, and fiduciary duty—or risk mismanaging assets. Consider naming a professional co-trustee or corporate fiduciary to handle complex finances while a family member offers personal insight. Dual oversight balances expertise with empathy.

3. Sibling Resentment Over Unequal Terms

Leaving different rules for each child—such as one receiving funds sooner due to special needs—can breed jealousy and long-term conflict. While customized clauses are sometimes necessary, transparency is essential. A personal letter or family meeting (facilitated by your estate attorney) can explain your rationale and minimize future disputes.

4. Neglecting Inflation and Investment Strategy

A trust funded today could lose real value decades later if assets sit in low-yield accounts. Trustees must follow an investment policy that outpaces inflation and aligns with the beneficiary’s life stage. Failure to do so erodes purchasing power and may even invite legal action for breach of fiduciary duty. Build clear guidelines that balance growth with risk tolerance.

woman doing paperwork
Image Source: Unsplash

5. Overlooking Guardian–Trustee Collaboration

Guardians raise the child; trustees control the purse strings. If these two parties barely communicate, educational or medical expenses may be delayed or denied. Establish regular reporting requirements and conflict-resolution procedures so guardian and trustee act as partners, not opponents, in your child’s welfare.

6. Tax Surprises That Shrink the Estate

Improperly structured trusts can trigger unnecessary income, capital-gains, or generation-skipping transfer taxes. High trust tax brackets kick in quickly, and state levies vary widely. Work with an estate-planning attorney and CPA to explore grantor-trust rules, lifetime gifting strategies, and charitable carve-outs that minimize taxation and preserve principal.

7. Marriage, Divorce, and Creditor Claims

Without robust asset-protection clauses, a beneficiary’s ex-spouse or lawsuit creditor could tap into trust funds. “Spendthrift” and “discretionary distribution” language fortifies assets against claims, while keeping trustees—not courts—in charge of payouts. Review state statutes regularly; protections differ by jurisdiction and can shift with new legislation.

8. Failure to Teach Financial Literacy

Even the best-drafted trust can’t compensate for a beneficiary who never learned budgeting or investing. Build education into the plan: allow the trustee to fund personal-finance courses, match IRA contributions, or require apprenticeships in a family business before large distributions occur. A trust that fosters wisdom as well as wealth creates generational stability.

Crafting a Trust That Truly Protects

Trusts are powerful tools, yet their effectiveness hinges on granular details many families overlook. By addressing trustee competence, flexible distribution schedules, tax planning, and beneficiary education, you transform an inheritance from a potential liability into an enduring asset.

Which of these hidden risks surprised you most, and what step will you take this month to strengthen your estate plan? Share your insights and questions in the comments—we’re building smarter legacies together!

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Samantha Warren
Samantha

Samantha Warren is a holistic marketing strategist with 8+ years of experience partnering with startups, Fortune 500 companies, and everything in between. With an entrepreneurial mindset, she excels at shaping brand narratives through data-driven, creative content. When she’s not working, Samantha loves to travel and draws inspiration from her trips to Thailand, Spain, Costa Rica, and beyond.

Filed Under: Parenting Tagged With: children’s trusts, estate planning, Family Finance, financial literacy, guardianship, inheritance risks, trust pitfalls, wealth transfer

Are Parents Obligated to Pay for Their Children’s College Education?

March 30, 2025 | Leave a Comment

Group of students going to study on campus. Friends are walking around university. Happy Boys and girls. AI generated man and woman

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The soaring cost of higher education has sparked a complex debate: are parents obligated to pay for their children’s college expenses? This question touches on legal, financial, and ethical considerations that vary widely among families. While some view it as a parental duty to support their children’s academic aspirations, others believe that students should take responsibility for their own education. Understanding the nuances of this issue can help families navigate the expectations and responsibilities involved. The decision ultimately depends on individual circumstances and values.

1. Legal Perspectives

Legally, parents are generally not required to pay for their children’s college education once the child reaches the age of majority. However, in divorce or separation cases, some court orders may mandate educational support as part of child support agreements. These legal frameworks vary from state to state and country to country. It is important for parents to be aware of their legal obligations and rights. Consulting with a legal expert can provide clarity on this complex issue.

2. Financial Considerations

Many families use the concept of an Expected Family Contribution (EFC) to assess their ability to pay for college. While the EFC is primarily a tool for financial aid determination, it also reflects a family’s financial capacity. Parents must balance supporting their children’s education with their own financial well-being, including retirement savings. Open discussions about finances can help set realistic expectations for college funding. Each family’s situation is unique, requiring a personalized approach to financial planning.

3. Ethical and Emotional Factors

Beyond legal and financial obligations, many parents feel a moral duty to help their children succeed academically. Providing financial support can strengthen familial bonds and offer opportunities that might otherwise be unattainable. However, it is also important for children to learn financial responsibility and independence. The ethical balance involves ensuring that support does not foster dependency. Honest, ongoing conversations about money and expectations are key to maintaining mutual respect.

4. The Role of Scholarships and Loans

Scholarship. Piggy bank, graduate hat, books and coins on light grey table. Speech cloud with word coming out jar

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Encouraging children to apply for scholarships, grants, and student loans can alleviate some of the financial burdens on parents. Many students successfully secure funding that reduces the overall cost of education. This approach not only eases the financial strain but also teaches valuable lessons in self-reliance and resourcefulness. Combining parental support with external financial aid can create a balanced strategy. This model promotes shared responsibility in funding higher education.

5. Long-Term Family Goals

The decision to pay for college should be aligned with the family’s long-term financial goals. Supporting education is a significant investment, and parents must consider its impact on their overall financial health. Developing a comprehensive financial plan that includes education funding, retirement, and emergencies is essential. Balancing immediate educational needs with future stability requires careful thought. Collaborative planning can ensure that both educational aspirations and family security are maintained.

It’s A Deeply Personal Choice

Deciding whether to pay for your child’s college education is a deeply personal choice that encompasses legal, financial, and ethical dimensions. Open communication and careful planning are crucial in making a decision that works for your family. There is no one-size-fits-all answer, and each situation must be evaluated on its own merits. By considering all factors and discussing expectations, families can arrive at a solution that supports both educational success and long-term financial well-being.

What are your thoughts on this issue? Have you navigated this decision in your family? Share your insights in the comments below!

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Tamila McDonald
Tamila McDonald

Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.

Filed Under: Education Tagged With: college education, Family Finance, financial planning, higher education, parental responsibility, scholarships, student loans

My Mom Has Dementia – 9 Steps To Protect Your Parents’ Assets During Mental Health Challenges

May 15, 2024 | Leave a Comment

Protect your parents' assetsAs our parents age and possibly face mental health challenges, their ability to manage financial affairs can diminish. This vulnerability makes them potential targets for financial abuse, fraud, and poor financial decisions that can deplete their life savings. Proactive steps are crucial to safeguard their assets, ensuring their financial security and peace of mind. This guide outlines nine essential actions to help you protect your parents’ assets during challenging times.

1. Understand Their Financial Situation

The first step to protect your parents’ assets is to fully understand their financial situation. This includes knowing the details of all their assets, such as bank accounts, investment accounts, real estate holdings, and personal property. Additionally, be aware of their liabilities, including any debts or recurring expenses. Gathering all relevant financial documents and compiling a comprehensive list will provide a clear overview of their finances and help in making informed decisions.

2. Legal Financial Planning

Consulting an attorney specialized in elder law is crucial for setting up legal mechanisms that protect your parents’ assets. This might involve setting up a durable power of attorney (POA), which lets a family member or friend manage financial affairs if your parents are unable to do so themselves. Other legal structures, such as trusts, can also be effective tools for managing and protecting assets. The attorney can also advise on the best legal structures to minimize taxes and maximize financial security.

3. Establish a Durable Power of Attorney

A durable power of attorney for finances is a legal document that grants a trusted individual the authority to handle financial decisions on behalf of your parents. Ensure this document is drafted while your parents are still capable of making decisions to avoid complications later. The appointed agent should be someone highly trustworthy and capable of handling financial responsibilities with integrity. They should also have a good understanding of your parents’ wishes and best interests.

4. Regularly Review Bank Statements

Keep an eye on your parents’ bank and credit card statements for unusual activity. Look for unauthorized withdrawals, unusual transactions, or any signs of financial exploitation. It’s also important to understand their spending habits, which can help in identifying any significant changes that might warrant further investigation. Setting up alerts for high-value transactions can also help monitor and protect their finances effectively.

5. Simplify Financial Accounts

If your parents have multiple bank accounts, investments, or credit cards, consider consolidating them. This reduces the complexity of their finances, making it easier to manage and monitor. It also reduces the risk of forgetting about certain assets or accounts. Choose institutions that offer robust security measures and fraud protection services.

6. Secure Important Documents

All critical financial documents should be stored securely in a fireproof safe, safe deposit box at a bank, or another secure location. Important documents include birth certificates, marriage certificates, social security cards, wills, deeds, and insurance policies. Proper storage prevents these documents from being lost, stolen, or damaged, which could complicate financial management and asset protection. It also ensures the documents are accessible when needed.

7. Monitor Credit Reports

Regular monitoring of your parents’ credit reports can help detect any unauthorized activities or accounts opened in their names, which are common signs of identity theft. You can obtain a free credit report from each of the three major credit reporting agencies once a year through AnnualCreditReport.com. This is a preventative measure to catch identity theft early, which can be particularly damaging to seniors. You can also encourage them to freeze their credit, which prevents creditors from accessing their credit reports and stops new accounts from being opened in their name.

8. Discuss Financial Decisions Openly

Maintain open lines of communication with your parents about their finances. Ensure they feel involved in the decision-making process as much as possible, respecting their independence. Discuss their wishes, goals, and preferences openly and make sure any financial decisions align with their long-term interests. This includes involving them in meetings with financial advisors or attorneys whenever feasible. This also includes discussing their plans with other family members to ensure everyone is informed and any actions taken are transparent.

9. Educate Them About Scams

Frequently discuss and educate your parents about potential scams, especially those targeting elderly individuals. This includes phone scams, mail fraud, and online phishing attacks. Empower them with information on how to recognize scams and stress the importance of not sharing personal information. Discussing the signs of scams and preventive measures can help them remain vigilant and protect themselves against potential fraudsters.

Ensuring Financial Integrity

To protect your parents’ assets in the face of mental health challenges is a profound responsibility that involves planning, vigilance, and a lot of heart. By implementing these steps, you help secure not just their financial resources but also their dignity and quality of life. Moving forward, continue to advocate for their needs, ensuring they are respected and protected as they navigate this phase of their lives. Remember, the goal is to manage their assets wisely and compassionately, keeping their best interests in mind.

[Read more…]

Toi Williams
Toi Williams

Toi Williams began her writing career in 2003 as a copywriter and editor and has authored hundreds of articles on numerous topics for a wide variety of companies. During her professional experience in the fields of Finance, Real Estate, and Law, she has obtained a broad understanding of these industries and brings this knowledge to her work as a writer.

Filed Under: Money and Finances Tagged With: assets, Family Finance, Finances, financial planning

My Wife’s Biggest Money Fear

January 10, 2013 | 3 Comments

biggest money fearDealing with family finances can be hard, no matter what philosophy of money you fall into: keeping things in one pot or keeping things separate.  The bottom line is that everyone will have fears about money – not having enough, not doing the right thing for saving for retirement, or maybe how to raise a family on a budget.

For my wife, her biggest money fear is not knowing.  We fall into the philosophy of having a shared pot for everything.  Both our paychecks go into one checking account, and we pay all of our bills from it.  We also share two credit cards, so we can maximize rewards.  That’s where we do all of our spending.

However, because of the simple logistics of processing bill payments, sometimes one or the other just handles it.  But then the real questions comes up – was it handled?  How much do we have left?  Do you have a scheduled payment that I don’t know about, so we really don’t have $X in our checking account?

That’s a valid fear.  Here is what we’re doing about it.

 

Where Her Money Fear Comes From

Getting married is great, but it is also tough when it comes to money.  We were both two single people who managed our castles just fine.  We didn’t need help, and we had full control.  We both admit that we’re pretty Type-A, so giving up control is hard.  Even though we both trust each other 100%, it’s still hard.

My wife’s fear comes from a self-admitted place of not having control.  For example, before Christmas, when our spending was probably at it’s peak getting ready for family dinners and buying gifts, she was very stressed because she didn’t see every single transaction each day – I was spending too.  It was hard for her.

While I don’t get to the same place, I can relate to when she spends and I don’t know where the money is going as well.

 

Solutions for Overcoming My Wife’s Biggest Money Fear

Since overcoming my wife’s biggest money fear was the most important challenge in our marriage, here are some of the solutions that we’ve put into place that have been working well for us.  While they may not work for everyone, they have helped eliminate 90% of the fear.

Shared and Agreed Upon Organization

The first thing is coming up with a shared and agreed upon system for keeping everything financial organized.  A huge part of fear comes from just not knowing.  So make sure that you both put into place a system where you will know.

For us, we rely on two key systems:

  1. Quicken
  2. HomeFile

For Quicken, we have all of our accounts synced so that in one update, either of us can get a clear picture of where we stand financially.  Quicken is great for our household finances because it will pull from all of our accounts, and show all of our recent transactions.  Plus, it has a lot of great reports that either of us can view, so we can really get a clear picture of our spending.

HomeFile is our way of organizing all of our records and financial documents.  It’s basically a filing system, that has tabs and organization for everything you need for your records.  For my wife, I wanted to make it easy for her to find anything, say insurance papers or auto records, should anything happen.  With the HomeFile system, we can both easily file everything, and find records as needed.

Now, neither of us must depend on the other to handle financial stuff.  This relieves some of the fear and stress around our finances.

Open Accounts and Passwords

With trust and transparency, it is important that we both have access to each other’s accounts.  When we got married, we gave each other Power of Attorney for Finances for all of our accounts, and we also gave each other access to our passwords.  Sometimes, you can’t always see pending transactions in Quicken, or investments take several days to post and update.  As such, we have a list of all our accounts – even our not shared ones like IRAs, with passwords, so we can both access them as needed.  This eliminates any fear of manipulating Quicken numbers or deleting transactions.  If either of us wants to, we can always go and look online for ourselves.

Clear Understand of Expectations

Finally, we both have setup clear expectations for handling money with each other.  For example, we’ve agreed that we can buy food and lunch whenever we want – no need to discuss anything with each other about that type of spending.  However, we’ve set limits on buying things for the house – like furniture or electronics – unless we both agree on it and setup a plan for action.

The bottom line is that we both have solid expectations for each other when it comes to spending money, and so we know what is good and bad to do.

 

Remember, at the end of the day, a happy wife is a happy life.  As such, it is essential that we work to solve my wife’s biggest money fear and make sure she is comfortable with the family finances at all times – whether she physically pays the bills or not.  Sitting up and wondering or worrying is not healthy, and doesn’t make for a good relationship.  This is what worked for us, what has worked for you?

How have you overcome family money fears?

Brian
Brian

Brian is the founder of Kids Ain’t Cheap and is now sharing his journey through parenthood.

 
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Filed Under: Money and Finances Tagged With: Biggest Money Fear, Family Finance, Fear, money, Philosophy Of Money

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Basic Principles Of Good Parenting

Here some basic principles for good parenting:

  1. What You Do Matters: Your kids are watching you. So, be purposeful about what you want to accomplish.
  2. You Can’t be Too Loving: Don’t replace love with material possessions, lowered expectations or leniency.
  3. Be Involved Your Kids Life: Arrange your priorities to focus on what your kid’s needs. Be there mentally and physically.
  4. Adapt Your Parenting: Children grow quickly, so keep pace with your child’s development.
  5. Establish and Set Rules: The rules you set for children will establish the rules they set for themselves later.  Avoid harsh discipline and be consistent.
  6. Explain Your Decisions: What is obvious to you may not be evident to your child. They don’t have the experience you do.
  7. Be Respectful To Your Child: How you treat your child is how they will treat others.  Be polite, respectful and make an effort to pay attention.
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