Raising a Family Got Far More Expensive, New National Survey Finds

Thousands Of Parents Describe The Same Squeeze

New America’s New Practice Lab surveyed 5,472 parents and primary caregivers of children ages five and younger, reaching every state and Washington, D.C. Conducted by NORC at the University of Chicago between January 16 and February 2, 2026, the survey included 2,915 respondents from households below 200% of the federal poverty level. The nationally representative results cover finances, employment, parental leave, child care and what parents wish their daily lives looked like.

Child Care Can Rival A Major Household Bill

Child care alone shows how quickly the cost of raising a young child can reshape a budget. New America reports that care costs amount to about 10% of average annual income for married-couple families and 33% for single parents, while the nationwide average price reached $13,184 per child in 2025. For a family of three earning 200% of the federal poverty level, that average bill equals roughly one-quarter of household income.

Having Children Can Squeeze Income, Too

Families are not simply paying more after children arrive. The report says the average two-parent household experiences a 14% drop in income after having children, while the decline for single parents, particularly women, can reach 36%. Some parents respond by working more: 31% of lower-income parents with young children reported taking on additional jobs, compared with 19% of parents at or above 200% of the federal poverty level.

The Preferred Child Care Setup Often Costs Too Much

Parents do not all want the same kind of care, but money frequently decides what is actually possible. Among those whose current child care arrangement falls short of their ideal, 54% cited financial reasons as an obstacle, while roughly one in four cited supply or availability. The bind was captured by an Oklahoma mother who described weighing whether her family could survive on one income or whether “your entire paycheck” would go toward child care.

Even Family Time Comes With A Price Tag

The survey found that 52% of parents faced at least one financial barrier to spending their time as they wanted. Thirty-seven percent said they could not afford the activities they would like to enjoy with that time, while 27% needed to work additional hours to support their households. Parents most commonly said extra time with their children would go toward simple experiences such as playing, being outdoors and traveling.

The Pressure Starts Soon After Birth

Many families confront the time-versus-money trade-off almost immediately. Among parents who were working when their youngest child was born, 15% took no leave, and 59% of those who took leave and returned to work were away for six weeks or less. Fathers reported a median of two weeks compared with 10 weeks for mothers, while 55% of parents overall said they had less leave than they wanted. If money were not a concern, 56% said they would want at least 11 weeks or would prefer not to return to work at all.

More Money Tops The Workplace Wish List

When employed parents were asked what would help them achieve their preferred work situation, the most popular answer was straightforward: higher wages. Sixty-six percent said better pay would help a lot, compared with 51% who chose the ability to work from home or elsewhere, 49% who wanted greater flexibility and 48% who wanted better benefits. Three-quarters of parents said their current work arrangement did not fully match the one they would ideally choose.

Some Young Adults Are Delaying Parenthood

Financial anxiety is shaping decisions before children arrive, too. An April 2026 Harris Poll for Intuit Credit Karma surveyed 629 adults ages 18 to 45 who did not want children or more children, or were unsure, and found 68% considered raising a child financially out of reach for someone in their situation. Sixty-one percent said finances had led them to delay, limit or reconsider having children, while 36% said more affordable or subsidized child care could make them seriously reconsider those plans.

Lower-Income Families Have Far Less Room To Maneuver

The strain becomes sharper at the bottom of the income scale. Among parents below the federal poverty level, 66% said they had sometimes or often struggled to meet basic needs during the previous year, compared with 16% of parents at or above 400% of the poverty level. Lower-income families also faced obstacles beyond bills: 23% of the lowest-income parents said transportation prevented them from spending their time as they wanted, compared with just 2% of the highest-income group.

Mothers Report An Especially Tight Balancing Act

Mothers were more likely than fathers to report several forms of financial and practical strain. Forty-three percent of moms said they had struggled at least sometimes to meet basic family needs over the previous year, versus 34% of dads, while 42% of mothers said affordability kept them from spending time as they wanted compared with 30% of fathers. Mothers were also more likely to report inadequate help with household duties, child-related responsibilities and backup child care.

What Families Can Afford May Shape What Comes Next

The survey does not reveal a single arrangement parents want government or employers to provide. Some prefer full-time jobs, others want flexible or part-time schedules, and preferences for child care shift as children get older, making affordability and choice closely connected. That distinction could become increasingly important as policymakers debate wages, paid family leave and child care: the central question is not simply how much raising children costs, but how those costs narrow the lives families are able to choose.