Families are spending an average of 27% of their household income on child care expenses, new survey finds
Child care is a struggle for most U.S. families, according to Care.com’s 10th annual Cost of Care Report. The survey asked 3,000 adults who have children under the age of 14 how much they currently pay for professional child care.
“If we have learned one thing over the past ten years it is that virtually all families face at least one major child care challenge: it could be cost, availability or accessibility or a combination of the three. These struggles differ for families around the country but there’s a resounding commonality,” Natalie Mayslich, president of consumer for Care.com, tells Yahoo Life.
The survey demonstrates the ways these three areas impact parents. Here are some of the key findings.
Child care is not affordable for most parents
By the numbers
Across the country, families are spending an average of 27% of their household income on child care expenses
45% of families earning less than $100,000 will spend more than 18% ($18,000) of their annual household income on child care
43% of families earning less than $75,000 will spend more than 24% ($18,000) of their annual household income on child care
39% of families earning less than $50,000 will spend more than 36% ($18,000) of their annual household income on child care
The most expensive state for child care across all categories (nanny, daycare and babysitter) is Washington, D.C.
The least expensive states for child care are Mississippi (nanny), Arkansas (daycare) and West Virginia (babysitter)
Context
All of these percentages are much larger than the 7% of household income that the U.S. Department of Health and Human Services (HHS) considers affordable for child care expenses.
Overall, the amount of money parents spend on child care is staggering. “Child care is unaffordable for the majority of American families. Working parents spend in excess of 20% of their household income on child care. Those numbers are even more staggering when you look at single-parent households and hourly versus salaried workers. And that’s a critical part of the conversation because as we know, without care, parents can’t work,” Mayslich says.
Child care costs are increasing
By the numbers
The weekly cost of a nanny ($736) is up 56% from 2013 ($472)
The weekly cost of daycare ($284) is up 53% from 2013 ($186)
The weekly cost of a family care center ($229) is up 80% from 2013 ($127)
The weekly cost of a babysitter ($179) is up 92% from 2013 ($93)
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This increase is a combination of higher daycare center fees, inflation and remote and hybrid work changing the type of care parents need. “Parents need customizable care that better suits the way families live and work today. Daycares used to be the primary option for child care, but we now see an equal number of families turning to nannies. This makes sense — while still an important part of the care landscape, they are not the reliable options of prior years as long waitlists, lack of accessibility and rigid schedules challenge parents,” Mayslich notes.
Parents are spending more money while waiting to get off waitlists at daycare centers
By the numbers
64% of parents said they had been waitlisted at daycare centers
49% had to wait more than three months for a spot to become available
25% of rural parents waited over a year for an available spot, and waiting is expensive. Most parents hire a nanny or get help from a relative. This creates an added expense of $200 to $300 a week
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Even though more than 70% of parents budget for child care costs, they still don’t expect what they’ve budgeted to be enough. Twenty percent plan to go over budget by the end of the year.
Single moms are the most likely group of parents to be waitlisted and 54% have had to take on extra expenses while waiting for a spot at a daycare. Single parents are also most likely to adjust their work schedule and the amount they work to afford or manage child care. Thirty percent of hourly working single moms reported taking on a second job and 29% reported taking on multiple jobs. Twenty-seven percent of single dads reported decreasing their hours at work while 25% reported working multiple jobs.
Child care can be hard to access
By the numbers
30% of parents say it’s harder to find child care providers than last year
75% of parents estimate that there are less than six daycare centers within a 20-minute drive of their home
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This leaves a lot of parents (42%) relying on family for help. In addition to the lack of access, parents also need more flexible options to find care during nontraditional hours.
Families are also making big changes to access child care. Almost all of the parents surveyed (90%) reported making one of the following changes: finding a more affordable provider (31%), relying on family/friends to help (27%), moving closer to family (20%) and working multiple jobs (19%).
While Care.com’s Cost of Care Report shows a staggering increase in the cost of child care and a decrease in accessibility, it offers six ways for parents to save money on child care costs: find the best care for your budget, discuss child care benefits with your employer, set aside pre-tax dollars to pay for child care, utilize tax credits and breaks, research child care subsidies and programs and advocate for societal shifts including universal preschool, expanded tax credits and a four-day work week.
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