Your cart is currently empty!
It’s Now More Costly to Enroll Your Child in Daycare Than in College
Updated: May 4, 2020
Originally Published: September 30, 2016
In a shocking revelation that won’t surprise any parent juggling daycare bills, a recent study has determined that childcare now surpasses college tuition in expenses across many states. Yes, you read that right—what a bummer!
According to a report by The Care Index, the annual cost for infant care is a staggering $9,589, exceeding the average college tuition of $9,410 in a remarkable 33 states. This eye-opening data arises from a collaborative effort between The Care Index and the think tank New America.
But wait, there’s more! The findings shed light on several unsettling facts about American families and childcare costs. For those earning a median household income, childcare consumes about one-fifth of their total earnings. And for minimum wage workers, that figure skyrockets to two-thirds. Ouch!
In most states, the cost of childcare is a whopping 85% of the median rent. In some areas, it’s even higher. With numbers like these, it’s no wonder many women find it hard to return to work. When so much of the household income is funneled into daycare, the financial incentive to stay employed often vanishes—especially for families with multiple children. It just doesn’t add up.
That said, it’s important to acknowledge that quality childcare services do come at a price. Daycare centers and in-home providers incur substantial expenses like insurance, staff salaries, and educational materials. But the real issue lies in the fact that many American families struggle to afford these services, as wages don’t keep pace and options for financial relief are limited.
Fortune highlights a striking statistic from New America, indicating that a woman taking a five-year career break starting at age 26 could miss out on a staggering $467,000 in lifetime income, wage growth, and retirement benefits. When faced with these figures, the cost of staying home to raise kids can end up being ten times greater than the annual cost of childcare!
I went back to work when my eldest was three because the thought of losing my career momentum was terrifying. Even though my initial earnings barely covered childcare for two kids, the desire to stay connected to my profession pushed me to find a job. The first year felt like I was working at a loss once I factored in commuting expenses and new work attire alongside that eye-watering daycare bill. I remember doing our taxes and the software repeatedly questioned whether our $21,000 in childcare costs was accurate—it was just that ridiculous compared to our income!
This is why so many American families find themselves in a bind; they’re stuck choosing between underpaid part-time work or no job at all. There’s no simple fix, but something has to give. Whether it’s government subsidies or enhanced childcare tax credits, families need support to navigate these challenges.
We absolutely can do better. For more on this topic, check out our other blog posts like this one on intracervical insemination. If you’re interested in exploring your options further, this resource is excellent for understanding family-building options.
Summary
A recent study reveals that the cost of childcare exceeds that of college tuition in 33 states, with many families dedicating a significant portion of their income to daycare. This financial strain often leads to tough choices for parents, particularly women, as they navigate the balance between work and family. Solutions like government support or better tax credits could alleviate the burden on struggling families.