Families across the United States are confronting a stark new reality: the total expense of raising a child to age 18 has climbed to $303,418, according to a recent Hometap analysis. This marks the first time the figure has broken the $300,000 threshold and reflects a 28% increase over just three years.

Childcare Takes a Larger Share of Income

Nationally, the average cost of childcare reached $13,184 per year in 2025, representing roughly 10% of the median income for a two‑parent household and a full 33% for a single‑parent household. Infant care at a daycare center averages about $14,760 annually, now exceeding in‑state public college tuition in most states. Families with two children in care often spend more on childcare than the median rent in every state with available data.

In a recent survey, 22% of parents reported allocating that same share of household income to childcare, while 20% said they had gone into debt to afford it.

Summer Camp Adds to the Burden

When school is out, many working parents turn to summer camp. Day‑camp rates average $87 per day, or over $400 per week per child, while overnight camps roughly double that cost at $173 per day. A few weeks of camp can quickly rival a mortgage payment, especially for families with multiple children.

School‑Year Expenses Continue to Rise

Once the academic year begins, spending shifts to supplies, clothing, and technology. The average family plans to spend $863.86 on back‑to‑school items in 2026, pushing total K‑12 back‑to‑school expenditures to a record $43.3 billion nationwide.

Private‑school tuition adds another heavy load. The national average for private K‑12 tuition is $14,999 per year, with elementary schools averaging $14,018 and high schools $17,954. In the most expensive states, tuition can exceed $28,000 annually, and elite boarding schools cost far more. For families with more than one child in private school, tuition alone can resemble a second mortgage.

College Becomes the Largest Single Expense

College costs dominate the final years of a child’s upbringing. For the 2025‑26 school year, average published tuition and fees were $10,740 for in‑state public schools and $38,070 for private nonprofit colleges. When housing, food, books, and other essentials are included, total cost of attendance rises to roughly $30,990 per year for in‑state public students and $65,470 for private students.

Stretched over four years—and multiplied across multiple children—college expenses can become the largest line item in a household budget.

Home Equity as a Potential Resource

U.S. homeowners hold an estimated $34.9 trillion in home equity, translating into hundreds of thousands of dollars of untapped value for many families. A recent survey of 1,000 homeowners found a majority feeling moderately to extremely financially stressed, citing rising home‑ownership costs as a top concern.

While selling a home is one way to access equity, many families explore alternatives such as home‑equity loans, HELOCs, cash‑out refinances, or newer home‑equity investment agreements that provide a lump‑sum cash infusion in exchange for a share of future home value, without monthly payments.

What Families Can Do

Experts advise parents to compare financing options carefully, consider the long‑term trade‑offs, and consult financial, tax, or legal professionals before tapping home equity to cover childcare, tuition, or other rising costs.

As the cost of raising a child continues its upward trajectory, families are increasingly looking for ways to manage budgets, save strategically, and protect their financial future while ensuring children have the resources they need to succeed.

Original reporting: KRDO (Colorado Springs metro) — read the source article.