How Much Does It Cost to Raise a Child in LA?

$35,651

That’s what a recent report from SmartAsset says it took to support a child under five in California for a single year. That’s up 6.6% from 2024, and is far above the national average of $27,743.

If we multiply that figure by 18 years, we get an estimate of how much it would cost to raise a child born in 2025 to age 18: $641,718. In reality, though, the total cost of raising a child in Los Angeles is probably higher. In part, that’s because the report calculated the annual cost of raising a child under 5. But children’s expenses increase as they get older. And, of course, the annual cost increases over time.

We love our kids so it’s well worth the expense, but consider this. That stunning figure doesn’t take into account the cost of college, which leaves many families struggling with debt. In California, even in-state tuition can exceed $15,000/year, with private colleges and out-of-state institutions potentially costing far more.

The Cost of Daycare in L.A.

Many households in California are dual income, meaning that both parents depend on a paycheck to meet expenses. Therefore, a need for quality daycare arises when two working parents are raising a child.The median annual cost of childcare in a daycare center in Los Angeles County is:

• $13,363 for an infant
• $11,480 for a toddler
• $11,699 for a pre-schooler
• $10,326 for a school-age child

The cost of in-home daycare is slightly more expensive for infants and toddlers, but slightly less expensive for older children.

And once children enroll in public school, they will have a variety of state-funded aftercare programs available to them. Silver linings!

Buying a House and Having Kids

When people are ready to start a family, one of the first things that comes to mind is buying a house and planting roots. Juggling a mortgage along with a couple of kids will make finances even tighter, and some may wonder: is it even possible? According to Zillow, the average Los Angeles home value in early 2026 is $933,111. With high prices and high interest rates, how can ordinary families get by?

An expert tip from Barry

Branching out from Los Angeles County into neighboring San Bernardino and Riverside counties is a proven cost-cutting strategy. Moving a bit off the beaten path (hello, Joshua Tree) can literally save your family hundreds of thousands of dollars in housing costs.

Renting in Los Angeles isn’t cheap, either. Apartments.com says the average rent in Los Angeles is $2,170/month. Nearly ¾ of rental properties in L.A. cost more than $1,500/month. Still, renting may be a viable short-term option for families who don’t have enough money saved to shell out a down payment on a house.

Healthcare Expenses

Premiums on health insurance have been steadily rising, even for employees who have solid plans through their employers. Those rising costs were aggravated at the outset of 2026, when federal enhanced insurance premium subsidies expired. California and a handful of other states partially replaced those subsidies, but it’s not enough to fill the gap. For those without insurance, the State of California offers Medi-Cal for low-income families and individuals who meet certain qualifications.

Since healthcare plans vary so widely and legislation is constantly in flux, it is not realistic to identify an “average” healthcare cost. One study found that on average, parents of a healthy infant covered by employer-provided insurance pay $950 in out of pocket medical expenses during the first three months of the child’s life.

Apart from insurance, healthcare may also include items such as diapers and food. California parents may spend an average of $70-100/month on disposable diapers. If they use baby formula, the average cost is $100-150/month. The statewide sales tax rate of 7.25%, the highest in the nation, contributes to the overall cost of living and raising a child (and it’s up to 11.25% in some parts of Los Angeles County).

The costs may be seemingly endless, but there are ways to save for those willing to live on the frugal side.

Tips for Saving Money and Raising a Family in L.A.

You can’t change the sales tax rate or the astronomical cost of utilities, but you can take control of other aspects of your budget. You decide how much — or how little — money you spend on entertainment and other luxuries. Here are a few ways to help you get started on a savings plan with kids.

Hold off on the Smartphone

Does your 8-year-old really need the latest, greatest version of the iPhone? Parents enjoy giving their children the best of everything, but some things simply aren’t necessary. While the latest and greatest model can be particularly tempting, you can rest assured that a new one will be out in the not-too-distant future, making even the newest one soon obsolete. If the phone isn’t broken, there’s really no need to replace it.

Be a Bargain Shopper

But not everything is free! While you don’t have to make all your purchases at the dollar store, you can cut corners in plenty of areas, including grocery shopping.

Clothing, toys, books, and extracurricular activities are just a few miscellaneous expenses that parents will inevitably encounter as they do the important job of raising the next generation. The good news is that, unlike a mortgage or healthcare, these are discretionary expenses that a parent can opt in or out of at any time.

There’s no doubt that raising a child in L.A. is an increasingly expensive proposition. But with a few adjustments, you can ease the financial burden while savoring precious quality time with your kids.

If you’re struggling with debt in Los Angeles, we may be able to help. Contact us today for a free debt evaluation.