The Cost of Raising a Child Is Climbing - How Early Saving Can Make a Difference

Raising a child in America has never been cheap - but new data from Business Insider drives home just how steep the costs have become.

Using 2025 figures from LendingTree, the article highlights the average cost to raise a child through age 18 is now $237,482 - and that’s before factoring in college. In 14 states, the number climbs above $250,000, with Hawaii topping the list at over $308,000. Even in the most affordable states, the cost rarely dips below $200,000.

What’s driving these rising expenses? It’s a mix of:

• Housing and childcare inflation
• Health care costs
• Daily necessities like food and transportation
• Extracurriculars, sports, and summer camps that support a child’s growth

For many families, these numbers are overwhelming. But they also underscore a powerful truth: planning early matters.

Building a Financial Foundation with UNest

At UNest, we know that financial preparation can make a meaningful difference in a child’s future. Our UTMA custodial accounts are designed to help families start investing early - with flexibility and ease. Whether you can contribute $25 per month or more, the key is starting now and staying consistent.

Unlike 529 plans that restrict use to education, UTMA accounts offer full flexibility. That means the funds you invest can be used for anything that benefits the child - from braces to a car, a laptop, a security deposit, or yes, college too.

When parents begin saving during the early years of their child’s life, they’re harnessing the power of compound growth. Over 10, 15, or 18 years, even modest monthly contributions can accumulate into a significant sum. And because the funds are invested, they grow alongside the market - helping families stay ahead of rising costs.

A Better Way to Prepare

Here’s the truth behind the numbers: the cost of raising a child will likely continue to climb. But families who prepare for it don’t have to carry the burden all at once. When you break it down into small, steady steps - and start early - you can create a cushion that supports your child’s needs without straining your future.

At UNest, we’re proud to support thousands of parents, grandparents, and caregivers who are taking action today to create opportunity for tomorrow.

Ready to build a financial foundation for your child?

Start your UNest account today: https://get.unest.co/unest-start-investing-today

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