Hawaii and New York Named Worst States to Raise a Family on a Budget

New study identifies where Americans can most affordably --- and most expensively --- raise a family

News provided by

GOBankingRates

Nov 09, 2015, 07:15 ET

LOS ANGELES, Nov. 9, 2015 /PRNewswire/ -- Hawaii and New York are the most expensive states to raise a family, while Tennessee and Utah are the cheapest, according to a new ranking released today by GOBankingRates.com.

To see the full survey findings, visit:
http://www.gobankingrates.com/personal-finance/10-cheapest-states-raise-family/

The leading personal finance website reports on the impact geography has on costs associated with raising a family and scores each state on factors that most contribute to a family's financial well-being1:

  • Median income
  • State parental leave policies
  • Food costs
  • Housing costs
  • Child care costs

"Raising a family can be expensive, regardless of where you live, but it can be especially challenging for families on a budget to make ends meet in certain states," said Cameron Huddleston, Life + Money Columnist at GOBankingRates. "It's important that they recognize the high cost of their decision to stay in those locales."

Additional insights include:

  • Parental Leave Programs: California outshines the rest of the nation with the most favorable parental leave policies, making it the No. 3 overall best state for families to raise kids on a budget.
    • In California, parents are offered 40 hours of parental leave for kids' education-related activities, 6 weeks of paid family leave and 28 weeks of unpaid leave. Compare that with states like New York, Georgia, and Indiana, which offer none of the above benefits.
  • Child Care Costs: New York ranks as the second overall worst state for families, largely due to scoring dead last with the most expensive child care costs.
    • The average annual cost of infant care in New York is $14,508 compared with Louisiana, the cheapest state for infant care, at $5,655.
  • Food and Homeownership Costs: When it comes to affordability for families, Tennessee comes out on top due to its low costs for the biggest budget items like food, home and child care expenses.

Full Rankings: Best and Worst States for Families on a Budget

1

Tennessee

18

Ohio

35

Arizona

2

Utah

19

Georgia

36

Minnesota

3

California

20

New Hampshire

37

Illinois

4

Virginia

21

Mississippi

38

North Carolina

5

Idaho

22

Kentucky

39

Delaware

6

Iowa

23

Arkansas

40

Maine

7

South Dakota

24

Wyoming

41

Florida

8

Missouri

25

Alabama

42

Connecticut

9

Nebraska

26

Colorado

43

Oregon

10

New Jersey

27

Washington

44

Massachusetts

11

Michigan

28

North Dakota

45

Nevada

12

Oklahoma

29

Maryland

46

Alaska

13

Texas

30

Wisconsin

47

Montana

14

Indiana

31

South Carolina

48

New Mexico

15

Vermont

32

West Virginia

49

New York

16

Louisiana

33

Pennsylvania

50

Hawaii

17

Kansas

34

Rhode Island

  Source: GOBankingRates

1For the full methodology, visit GOBankingRates.com.

About GOBankingRates

GOBankingRates.com is a leading portal for personal finance and consumer banking information, offering visitors the latest on everything from finding a good interest rate to strategies for saving money, investing for retirement and getting a loan. Its editors are regularly featured on top-tier media outlets, including U.S. News & World Report, Forbes, Business Insider, Daily Finance, Huffington Post and more. It specializes in connecting consumers with the best financial institutions and banking products nationwide.

Contact:

Connie Lundegard, Media Relations
GOBankingRates.com
[email protected] 
310-297-9233 x112

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SOURCE GOBankingRates