The cost of raising children has become one of the most eye-opening financial realities for young couples. In 2025, the average annual cost of raising a child under five in the U.S. reached $27,743, encompassing expenses such as housing, food, transportation, healthcare, miscellaneous items, and childcare for working parents, according to SmartAsset.
These costs increased 4.5% from 2024, slightly outpacing the 2.82% inflation rate, and can differ by tens of thousands of dollars depending on the state, with some regions experiencing notable year-to-year fluctuations.
Don't Miss:
- The ‘ChatGPT of Marketing' Just Opened a $0.86/Share Round — 10,000+ Investors Are Already In
- 7 Million Gamers Already Trust Gameflip With Their Digital Assets — Now You Can Own a Stake in the Platform
In conversations featured on YouTube creator Charlie Chang’s channel on Jan 13, 2023, couples opened up about everything from their ideal partner income thresholds to whether they’d support a spouse quitting a six-figure job to chase a passion. The responses paint a complex picture of modern relationship finance, where transparency battles tradition and passion projects compete with practical stability.
The Daycare Shock That Changes Everything
One couple with two boys shared a stark reality check: they spend about $1,000 per month per child on daycare—$2,000 every month—a burden they described as "another person's salary" devoted entirely to childcare.
"Raising a child costs so much more than what we expect," another interviewee said, noting that the idea of parenting expenses rarely matches the financial shock of actually paying them.
And the latest 2025 childcare cost data from national childcare and household-services marketplace Call Emmy, shows their experience is far from unusual. According to Call Emmy, national averages for licensed daycare centers now put infant care at $1,800–$2,500 per month in urban areas, $1,400–$1,900 in suburbs, and $800–$1,200 in rural regions. Toddler care isn't far behind, running $1,600–$2,200 in urban centers, $1,200–$1,700 in suburban areas, and $700–$1,100 in rural communities.
This financial pressure influences major decisions, including whether one partner should pursue lower-paying passion work. While some interviewees responded they were “100% supportive” of a partner doing what they love over chasing money, others took a harder line. One person flatly rejected the idea, citing a responsibility to provide and suggesting passions should remain hobbies rather than primary income sources.
Trending: Forget Flipping Houses—This Fund Lets You Invest in Home Equity Like Wall Street Does
The $125,000 Question: What Should Your Partner Earn?
Income expectations varied dramatically across couples, reflecting different lifestyles and near-term goals. One individual set an ideal minimum partner income at $125,000, pointing to high living expenses and plans to have children soon, according to the interviews.
Other couples cited lower thresholds, with suggestions ranging from $50,000 to $60,000, while another wanted “anything over a six-figure salary.”
These differences weren’t just about greed or materialism. The conversations revealed how career stage, location, and family planning create vastly different financial requirements. A couple without children in a lower-cost area operates under entirely different constraints than partners preparing for parenthood in an expensive city.
The Debt-Free Philosophy That Feels Like ‘Rich in a Different Way’
Perhaps the most striking financial wisdom came from couples who’ve eliminated debt entirely. One pair shared they’ve never bought a new car and currently carry no debt whatsoever.
“Try to borrow money as little as possible,” one partner advised, explaining this approach makes them feel “rich in a different way” and “free.”
This debt-avoidance strategy starts early. One interviewee recounted sleeping in a living room during college specifically to minimize student loans. The core advice: “Make that sacrifice early” to end up further ahead financially in the long run.
The student loan discussion connected to broader debates about college value. While some interviewees said college “isn’t for everyone” and cited successful family members who never attended, others defended higher education’s importance. One mechanical engineer said college provided specific knowledge and credibility necessary to secure employment at Tesla (NASDAQ:TSLA).
See Also: From Moxy Hotels to $12B in Real Estate — The Firm Behind NYC's Trendiest Properties Is Letting Individual Investors In.
How Couples Actually Split the Bills
Financial transparency emerged as a non-negotiable for most couples. Several emphasized knowing each other’s complete financial picture and hiding nothing. One couple credited pre-marital discussions guided by their pastor with helping them resolve tough questions about family birthday spending and vacations before marriage.
The mechanics of splitting expenses varied widely. Some couples maintain one joint account for total transparency, while others—particularly those dating shorter periods—keep finances entirely separate. Methods for handling shared costs included splitting rent evenly then buying individual items separately, dividing meals 50/50, or using apps like Splitwise to track who pays next.
Minor conflicts still arise. One couple admitted arguing over purchases deemed “too expensive,” such as buying large quantities of tea.
For couples navigating volatile income streams, the challenges intensify. One professional golfer described earnings fluctuating from $100,000 in good months to losing $10,000 to $15,000 in others after covering travel, hotels, and caddie fees out of pocket.
The relationship advice threading through these financial discussions: don’t let small issues compound, know how to cool off when tensions rise, and never sweep conflicts “under the rug.”
Read Next: Have $100k+ to invest? Charlie Munger says that's the toughest milestone — don't stall now. Get matched with a fiduciary advisor and keep building
Image: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
