Georgia, Florida and Louisiana center-based care providers have seen the largest increases for children ages 3 and 4 — an annual average of at least 144%. (Photo: Shutterstock)
Child care expenses have spiked by more than 40% during the pandemic, soaring from nearly $10,000 annually per child to more than $14,000. LendingTree researchers used Center for American Progress data on costs for center-based child care providers and data from Child Care Aware of America on household child care costs to quantify the effect on households.
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"Keeping kids safe during a pandemic isn't cheap," said Matt Schulz, LendingTree's chief credit analyst. "So much more is being required of these centers during the pandemic, and these new, tougher safety guidelines from governmental agencies have forced them to ramp up their spending in order to comply."
Researchers reported several key findings:
- Center-based care providers for children ages 3 and 4 face an additional 57% in annual costs compared to before the pandemic. For infants and toddlers (children 2 and younger), annual costs for center-based care providers are up 37%.
- Georgia, Florida and Louisiana center-based care providers have seen the largest increases for children ages 3 and 4 — an annual average of at least 144%.
- Indiana households with children younger than 5 spend 20% of their income on average on child care, highest in the United States.
- New Jersey, Mississippi, Kentucky, Texas and North Dakota households with children younger than 5 spend 11% of their income on average on child care, lowest in the United States.
LendingTree recommends several options for parents squeezed by rising costs:
- Look for areas to trim. "If you can't reduce [child care] costs significantly, your best move may be to try and budget for the extra costs," Schulz said. "Depending on how much the child care costs have risen, you may simply need to cut back on some extras, such as streaming services or takeout, or you may need to cut more deeply."
- Consider increasing your income. Look into other opportunities to make money, if possible using your existing skills. For example, freelancing or getting a local part-time job can be great options. Make sure you have enough time to dedicate to that job to make it worthwhile.
- Ask if there are ways to lower your child care costs. As with any necessity, asking if there are options for lowering payments is something to consider. Explaining your circumstances, such as a job loss or reduced hours, can work in your favor.
- Consider debt consolidation. If you have existing debts, a debt consolidation loan can be a good option to lower your monthly costs, provided you have solid credit. However, keep in mind that this can increase your long-term costs, so weigh the pros and cons before going forward.
- Check with your state for child care grants. The level of assistance and qualifications will vary by state, but it's still worth considering if you're having trouble paying for child care amid the crisis.
"For many parents, removing a kid from their day care is the last option they'd want to consider, especially if the kid is thriving, learning and making friends there," Schulz said. "Still, you may not have a choice. If you simply can't afford your current child care anymore, shop around. You might be able to find a new center that works for you."
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Alan Goforth
Alan Goforth is a freelance writer in suburban Kansas City. In addition to freelancing for several publications, he has written a dozen books about sports and other topics.
