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The skyrocketing cost of child care is putting a strain on the budgets of most working families.
"On average, families are spending 27% of their household income on child care expenses," according to the latest Cost of Care report. "For perspective, this can mean over $18,000 per child for 59% of parents surveyed. This is a significant increase from previous years, reflecting the ongoing rise in child care costs."
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Care, a family care management platform, surveyed 3,000 U.S. adults about the cost of child care. Among the findings:
- Two-thirds of parents surveyed spend 20% or more of their annual household income on child care, up from 51% in 2022.
- Nearly 9 in 10 spend 10% or more of their annual household income on child care, up from 72% in 2022.
- However, child care is considered affordable when it costs families no more than 7% of their household income, according to the U.S. Department of Health and Human Services.
- Three in four parents estimate that fewer than half a dozen daycare centers are within a 20-minute drive of their home.
- Parents have even more need now for options that provide more flexibility. Forty-five percent of respondents use child care during nontraditional hours, such as 10 a.m. to 1 p.m.
Several factors are contributing to the increasing cost of child care, including inflation, fee increases at child care centers and changes in parents' work situations. Many parents report changes in work hours, new responsibilities at work and changes in work location as reasons for needing more or different child care.
As costs increase, many parents are having to adapt. Some are finding more affordable child care providers or relying on family and friends to help. Others are moving closer to family, working multiple jobs or adjusting their work schedules. Parents are considering several strategies when it comes to saving money, including research for the best child care subsidies and programs for their budget, discussing child care benefits with their employer, using pre-tax dollars to pay for child care through a dependent care account and taking advantage of tax credits or breaks.
"With this new data, it is easy to see that the cost of care has changed dramatically in the last 10 years, and no state or region across the country is immune as families continue to try to catch up," the report concluded. "It is no wonder that for every data point discovered, families of all shapes, sizes, and backgrounds are struggling to afford child care. This has a profound impact on working parents and decisions regarding their careers. Now more than ever, intervention is needed to empower these working parents with flexible benefit options that can support the care needs of their families at home."
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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.
