Majority of Families Spend at Least 20% of Household Income on Childcare According to New Care.com Survey
Rising costs impact consumer spending and employment
The ninth annual Cost of Care survey from
“When it comes to childcare, there are three critical criteria – cost, quality and availability – and based on our research findings, we’ve not only failed to make progress as a country, we’ve actually gone backwards,” said Natalie Mayslich, President, Consumer,
The economic impact of childcare costs
Parents are adjusting significant aspects of their lives to accommodate rising childcare costs, moves that have a broader economic impact. On the work front, of the parents surveyed, 31% are considering taking on a second job, 26% reduced hours at work, 25% have changed jobs, and 21% have left the workforce entirely. When it comes to consumer spending, the majority of families (68%) budget for childcare costs and nearly two-thirds (65%) say they will stay within or under budget. However, nearly all families are scaling back with 91% of respondents reporting having trimmed at least one item to pay for increased childcare costs. Families are reducing budgets for vacations and travel (51%), leisure activities (51%), food and dining (45%), clothing (41%), and extracurriculars (37%). And, not surprisingly, rising childcare costs are even impacting family planning with 35% reporting they’re less likely to have more children, and 43% citing the rising cost of childcare as the main reason.
The pandemic effect
Childcare costs have been on the rise for some time, but the pandemic sparked greater increases in a two-year period than have occurred since 2015. Here is how childcare costs have increased since before the pandemic began in 2019*:
-
Average national weekly nanny rates are
$694 , up 23% pre-pandemic. -
Average national weekly childcare center rates are
$226 , up 5% pre-pandemic. -
Average national weekly family care center rates are
$221 , up 10% pre-pandemic. -
Average national weekly babysitter rates are
$261 , up 7% pre-pandemic.
*based on weekly rate for one child
Of the parents surveyed, 56% plan to spend more than
- 40% are having trouble finding a nanny.
- 39% are struggling to get care through a family care center.
- 37% find it challenging to book a babysitter.
- 36% are facing an uphill battle with finding a quality childcare center.
When asked what they believed was driving the cost increase, the top three reasons cited by parents were increased costs at childcare centers (46%), inflation (41%), and limited availability at childcare centers (36%).
Care.com National Average Weekly Rates*
|
2019 |
2021 |
2019 |
2021 |
|
One Child |
One Child |
Two Children |
Two Children |
Nanny |
|
|
|
|
Childcare center |
|
|
|
|
Family care center |
|
|
|
|
After-school sitter |
|
|
|
|
*All rates are for infant children, except for after-school sitter, which is not age limited.
**Rates for two children calculated by adding the weekly rate for one child and the weekly rate for the second child with a national average sibling discount of 10%.
2022 Cost of care around the country
Top 10 Most Expensive States to Hire a Nanny
State |
Weekly Rate |
$ Above National Avg |
% Above National Avg |
|
1. |
|
|
|
23% |
2. |
|
|
|
21% |
3. |
|
|
|
20% |
4. |
|
|
|
19% |
5. |
|
|
|
10% |
6. |
|
|
|
7% |
7. |
|
|
|
6% |
8. |
|
|
|
6% |
9. |
|
|
|
3% |
10. |
|
|
|
2% |
Top 10 Most Expensive States to Use a Childcare Center
State |
Weekly Rate |
$ Above National Avg |
% Above National Avg |
|
1. |
|
|
|
85% |
2. |
|
|
|
44% |
3. |
|
|
|
34% |
4. |
|
|
|
26% |
5. |
|
|
|
14% |
6. |
|
|
|
14% |
7. |
|
|
|
13% |
8. |
|
|
|
12% |
9. |
|
|
|
12% |
10. |
|
|
|
10% |
Calculate childcare costs by zip code with the Cost of Care Calculator
The keys to mitigating costs
While more than half (59%) of parents say they’re more concerned about childcare costs now than in years prior, surprisingly, they’re not availing themselves of tools to reduce the expense.
The Child and Dependent Care Tax Credit can save parents
Similarly, a Dependent Care Flexible Spending Account (FSA) offered by many employers allows parents to contribute up to
2022 Cost of Care Survey Methodology
This scientific sample of 3,003 US adults (18 years or older) who are all parents paying for professional childcare was surveyed between
About
Available in more than 20 countries,
View source version on businesswire.com: https://www.businesswire.com/news/home/20220615005371/en/
Media:
PR Associate
Mackenzie.nintzel@care.com
PR Associate
Jamie.gentges@care.com
Source: