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By Suzanne Blake
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The majority of American parents are now in debt because of their children, according to a new survey from National Debt Relief and Talker Research.
Six in 10 American parents had gone into debt for their children, according to the survey's findings, reflecting increasing concerns over the affordability of having children for millennial and Gen Z Americans.
Why It Matters
The cost of having a child in the U.S. has skyrocketed, with inflation on housing, food and health care all playing a substantial role.
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A 2022 report from public policy think tank The Brookings Institution found that a middle-income family with two children would have to spend $310,605, adjusted for higher future inflation, to raise just one child born in 2015 until they turned 18.
What To Know
The new study from National Debt Relief and Talker Research, based on 2,000 U.S. parents of kids aged 0 to 18, found a significant portion of parents had taken on thousands in medical debt. Some reported skipping meals to cover the basic necessities for their children.
Altogether, 59 percent of parents had gone into debt to provide for their children, and 81 percent of all parents said they prioritized providing for their kids over paying down debt.
"This isn't really about parents suddenly becoming financially reckless," Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek. "What we're seeing is the collision of three economic realities that've been building for years."
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A separate report from the Annie E. Casey Foundation found that child care costs have outpaced inflation by 220 percent since 1990.
"Parents aren't CHOOSING debt; they're getting squeezed into it. It's panic borrowing," Ryan said. "Parents see their kids' futures getting more expensive by the day. College, housing, health care. And they're front loading those costs now, hoping to give their children a head start before prices climb even higher."
Both the holidays and back-to-school season can exacerbate parents' financial situations, with 47 percent of parents going into debt during the holidays and 39 percent at the beginning of the school year.
Much of the debt was also related to the high costs of health care, however. Forty-two percent of indebted parents took on debt for their children's prescriptions, and 41 percent for doctor visits.
The ramifications of going into debt are far-reaching. Parents in debt are twice as likely to neglect their physical and mental health as those not in debt, and 50 percent more likely to skip meals.
Younger parents were more likely to struggle with the financial burden of having kids, with 63 percent of Gen Z parents saying debt is limiting their ability to grow a family.
"There are few alternatives when raising children if there's a shortfall in your budget other than to go into debt to fill those financial gaps," Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
"We keep hearing of declining birth rates, and this is one of—if not the—top factor. Many young couples want to eventually have children, but the financial entry point is steeper than what they can economically provide at the moment."
What People Are Saying
Natalia Brown, chief consumer affairs and creditor relations officer at National Debt Relief, said in a statement: "Debt disrupts more than just finances. It reshapes parenting. Debt is quietly dictating the choices parents make for their families every day, from skipping meals to shelving college savings plans for their children. As both a financial advocate and a mom, I know how heavy the burden of making those choices can feel."
Finance expert Michael Ryan told Newsweek: "The parents going into debt today are often the financially responsible ones. They're running the numbers, seeing what it actually costs to raise a child properly, and borrowing against their future because they refuse to shortchange their kids. This reflects an economy where being a good parent has become a luxury purchase."
What Happens Next
Birthrates are already dropping in part due to the higher costs of raising a child today, Ryan said.
The fertility rate in the U.S. declined to an all-time low in 2024, with fewer than 1.6 children being born per woman, according to the CDC.
"When having a kid means choosing between your retirement and their college fund, people postpone or skip parenthood entirely," Ryan said.
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