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American parents are paying more for childcare than ever before

According to a new survey, 70% of families are paying rates defined as unaffordable by the government.

American parents are paying more for childcare than ever before

If you feel like you're paying too much of your household's income for childcare, you are not alone. The average cost per family in the U.S. has gone up far faster than median household incomes over the last six years. No wonder many families are feeling the crunch.

According to a new survey from Care.com, families paid 26% more for nannies to care for one child in 2018 than they did in 2013, going from an average of $472 per week to $596. The difference in childcare centers isn't quite as drastic, from $186 to $213, about a 14% increase. After-school babysitting went up from $181 to $244 per week, a stunning 35% rise. All of this is a faster rate than the median household income, which rose about 11% from 2013-2017.

When you drill down, the numbers spell out why this is hurting families. The 2019 Cost of Care Survey from Care.com showed that over 70% of families devote more than 10% of their income to childcare costs, and more than 40% spend more than 15% of their income. That's more than twice as much as the U.S. Department of Health and Human Services' definition of affordable childcare, which is 7%.

Of course, most families find a way to make it work, because what choice to they have? Survey respondents told Care.com that they do this by cutting down on spending and saving less for the future. They also wind up working fewer hours and having fewer children. These sacrifices by parents can also wind up costing the economy in terms of growth.

There were some other interesting findings of the survey. If you're looking for a place to relocate your family, New Jersey turns out to be the most affordable place to hire a nanny, while North Dakota has the most affordable childcare centers. New Mexico has the least affordable nannies, and Washington, D.C., has the least affordable childcare centers. Maybe if more of the nation's lawmakers had to put their kids in daycare near the capitol, they'd step up their actions to change things.

Most of the candidates in the 2020 presidential election have laid out plans for either universal childcare, larger tax credits, or subsidized care. President Trump has proposed a one-time $1 billion investment in childcare, structured so that states would have to apply to receive some of the funding. At this point, so many parents out there will take any help they can get.

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