Child Care Costs More Than College Tuition
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The staggering annual cost of child care is a growing burden on many families.
According to a new study by Child Care Aware of America, parents in 31 states are shelling out more annually for child care than for a year of tuition at a state college. Massachusetts parents are spending the most, paying $16,549 per year — 15 percent of the median income for a two-parent family — to send an infant to a center for care. (Meanwhile, CollegeData.com reports tuition at an in-state college is about $9,000 a year, not including room and board.)
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It’s no wonder a 2014 Pew Research study indicated a growing number of mothers are finding ways to earn income at home, bypassing steep child care fees that jumped from $87 a week in 1985 to $147 in 2012.
Michelle G., from New York, where childcare is reported to cost $8,000 more than in-state tuition, was working at an ad firm when her second child was born in 2009. “It would have cost over $4,000 [a month] to have my children in daycare, which didn’t make going back to work realistic,” she tells Yahoo Parenting. Her income from freelancing combined with her husband’s salary and benefits work out for the family.
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Other moms, like Suzanne H. from Dunedin, Florida, choose to adjust their work schedules. “I have three kids under eight and at least two required fulltime child care at a time,” says Suzanne, adding that she works part-time on the days when her husband or mom can watch the kids.
Still, Child Care Aware America reported 3 in 10 parents either missed work or were late getting to their jobs last year because of care-related problems. Stephen Wood, Research Consultant for Child Care Aware of America, tells Yahoo Parenting the main reason is the difficulty finding providers when there is no regular child care arrangement.
Child care is particularly unaffordable for single parents. “The study found that across all states, the average cost of center-based infant care exceeds 23 percent of the median income for single parents,” notes Wood.
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Wood advises all parents, no matter their income or relationship status, to research child care before committing to a facility. Ask about a discount if you have more than one child enrolled at the center. Shop around and compare school curriculum, if a hot lunch program and snacks are included; if additional fees apply for late pickup. Be aware that childcare fees should decrease as the child gets older compared to infant and toddler care. Also, familiarize yourself with theChild and Dependent Care Tax Credit. Most people who pay for childcare are eligible for a 20 percent to 30 percent credit based on gross adjusted income.
According to the study, families at the poverty line can spend as much as 85 percent of their income on child care, but Wood says there is help. “Check for eligibility with CCDBG (federal funding for child care subsidies for low-income working families), CACFP participation (a nutrition education and meal reimbursement program), and the possibility of philanthropy-based funding.”
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The good news: Research shows money spent on child care pays off. “High-quality child care not only helps parents to be more productive at work, but also provides benefits to young children, including improving school readiness,” says Wood. “Children from low-income families show better language and social skills as a result of attending daycare.”
