Coloradans spend hundreds per week on childcare; how it compares to rest of US
DENVER (KDVR) — If you’re not a parent or a child’s guardian, you may not be in the loop about childcare costs and how they vary from state to state.
However, American parents are well aware that the costs are steep. A new study by LendingTree that analyzed Census Bureau data confirms the sometimes overwhelming cost of childcare in the state, but it also shows that Colorado is nowhere near the most expensive state for childcare — nor the least expensive.
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“The cost of everything is rising. There’s so much that goes into child care, including rent, payroll, insurance and much more. When all those costs shoot up, the overall cost of child care does, too,” said Matt Schulz, LendingTree chief credit analyst, in a release.
What is the mean cost of childcare for American families?
According to LendingTree’s study, Nevada families pay the most out of the 50 states and Washington D.C., spending on average 32.3% of their income to pay for childcare. That translates to a mean weekly childcare spending budget of about $493, with Nevadan parents bringing in an average weekly income of about $1,529.
Montana was ranked second, with families spending about 22.6% of income on childcare with an average weekly childcare spending budget of about $372.
Finishing out the list at No. 50 was Iowa, with a mean weekly spending of $182 on childcare or roughly 10% of the household income. Perhaps that’s why Iowa is also one of the states most likely to pay for childcare, ranking fourth under D.C., New Jersey and South Dakota. The study found that Iowans pay for childcare about 69.2% of the time they use childcare.
Here’s the rest of the top 10 states for spending on childcare, according to LendingTree’s study:
Rank | State | Mean weekly family income | Mean weekly childcare spending | Percent of income spent on childcare |
1 | Nevada | $1,529 | $493 | 32.3% |
2 | Montana | $1,643 | $372 | 22.6% |
3 | Louisiana | $1,381 | $303 | 21.9% |
4 | Texas | $1,592 | $341 | 21.4% |
4 | Oregon | $1,770 | $378 | 21.4% |
6 | New Mexico | $1,291 | $272 | 21% |
7 | Hawaii | $1,980 | $413 | 20.9% |
8 | Idaho | $1,675 | $348 | 20.8% |
9 | Illinois | $1,843 | $379 | 20.6% |
10 | Washington | $2,094 | $409 | 19.5% |
Nationally, about 52.9% of Americans who use childcare say they pay for it as well. But LendingTree’s study also found that the national average cost for childcare is about $325 a week and families with children under 18 earn on average about $1,751 per week.
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The study found American parents are spending on average 18.6% of their income on childcare.
How much do Colorado parents spend on childcare?
Colorado families spend the 19th-highest percentage of their income on childcare, according to LendingTree’s study.
The study found that Colorado families with children earn on average $2,123 per week and spend $393 per week on childcare. That represents about 18.5% of the family income being spent on childcare.
Colorado ranked 28th for the percentage of paying for child care. Over 542,000 households reported using childcare, but only 283,549 reported paying for it (52.3%).
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