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Recently, I came across a thought-provoking Twitter thread that began with a simple query: “Can someone clarify why daycare costs are so high while workers earn so little? What am I missing?” The user, @EmilyJameson, mentioned that her parents run a small in-home daycare and highlighted a significant disparity between their rates and what she pays in her area of Georgia.
I distinctly recall feeling shocked by the costs associated with the childcare center my son attended when I returned to work. It felt unbelievable that we were spending nearly as much on daycare as we did on our mortgage — approximately half of my take-home salary at the time — just for someone to care for our two-year-old.
I wasn’t alone in my disbelief. Nationwide, childcare expenses rank among the top two or three costs for families, often rivaling mortgage or rent payments. Yet, the reality is that daycare workers and early childhood educators receive meager wages. According to the Center for American Progress, around 40% of daycare staff have to rely on public assistance at some point in their careers. However, daycare centers themselves often operate on tight budgets. For those interested in specifics, you can explore an interactive tool that provides state-specific cost estimates for early childhood care based on national averages and local data here.
So, why is early childhood education so costly, and why aren’t its workers compensated fairly?
I anticipated a barrage of criticism aimed at daycare providers in response to the tweet, but most comments focused on the practical challenges of running a daycare. User @LiamHarris pointed out, “If parents and childcare workers received the same hourly rate, a worker caring for four children would need to allocate a quarter of a parent’s payment for each child. This doesn’t even cover FICA, benefits, utilities, supplies, food, or bookkeeping.” Similarly, @SofiaBrown emphasized the math involved: “In many states, three staff members are needed for every ten infants. At $200 per week per child for 45 weeks, that totals $90,000 a year. With no rent or overhead factored in, each staff member would still earn only $30,000. The math speaks for itself.”
Back when I was grappling with the high costs of daycare for my own child, I reached a similar conclusion. While we were spending nearly as much as our mortgage for a safe environment for my son, the caregivers who provided loving care were not earning much, nor was the daycare owner.
It’s essential to note that the calculations in @SofiaBrown‘s tweet assume a perfect split of $90,000 without considering any overhead expenses such as mortgage, insurance, utilities, maintenance, or even cleaning supplies. Daycare owners typically aren’t swimming in money, and neither are their employees. Of course, there can be instances of price gouging or employee mistreatment, as is possible in any industry, where some may exploit others or inflate prices.
So, what’s the solution?
The reality is that, like many essential services that underpin society, including food production and education, early childhood education should ideally be subsidized with public funds. Yes, this means using taxpayer dollars. For all our rhetoric about the importance of giving children the best possible start in life and our praise for early childhood educators, we are not backing it up with financial commitment.
We rightly expect skilled professionals to care for and prepare our children for kindergarten. This is a reasonable expectation. However, to ensure that these educators are paid fairly for their invaluable work, we need to subsidize childcare. While some may grumble about increasing taxes for a service that is technically optional, the truth is that investing in quality early childhood education with public funds would enhance our overall social and economic health. Children who receive quality early education tend to perform better across various metrics, from health to self-esteem.
Parents who can afford daycare can work, access preventive healthcare, and contribute to the economy through their purchases. Funding early childhood education isn’t just an expense; it’s an investment in our future.
Yes, daycare is indeed expensive, and no, daycare workers aren’t compensated enough. However, rather than pointing fingers at daycare providers for high costs, we should reflect on ourselves and our representatives. We must ask why we have collectively failed to invest in our children and what steps we can take to change this.
Summary
Daycare costs are exorbitant while educators are underpaid due to a lack of public funding and high operational expenses. To ensure quality care and fair wages, early childhood education should receive subsidies, which would ultimately benefit society as a whole.