Minneapolis parents spend 43% more on children than on housing

Childcare costs in the Minneapolis area have surged past housing expenses for nearly half of households, according to a new financial survey. The 2026 planning and progress study from Northwestern Mutual found that parents in Minneapolis spend 43% more on their children each month than they do on housing. This figure exceeds the national average, where parents spend 33% more on kids than on their homes.

Dave Klein, a financial planner with Refine Wealth Strategies, noted that these figures indicate child-related costs have become a dominant part of the family budget. He pointed to daycare as a primary driver, citing Daycarecostguide.com data that ranks Minnesota as the eighth-most expensive state for childcare in the country. Klein explained that monthly daycare fees can easily exceed $1,000, a strain that is particularly acute for young families.

Beyond early childhood care, the study highlights how expenses accumulate as children age. Klein listed groceries, clothing, medical visits, and school fees as additional burdens that contribute to the overall cost. He suggested that families use a three-bucket budgeting method to manage these outlays. The first bucket covers steady monthly costs like rent and daycare. The second accounts for seasonal expenses such as holidays, sports, and summer programs. The third is reserved for discretionary spending.

Klein argued that this structured approach helps families avoid impulsive spending. By separating fixed obligations from variable costs, parents can better gauge what they can afford to spend each month. "It can remove the quick emotional decision-making that’s hard to do," Klein said. The survey data is set to inform financial planning strategies for families in the region as they adjust to the current cost of living.