A recent study reveals that daycare expenses surpass both rent and mortgage payments in nearly every state, prompting various organizations to call for reform.
According to a report by Child Care Aware of America, childcare remains a significant financial burden for numerous parents. The report reveals that last year, the cost of placing two children in a childcare center was at least 25% higher than the average rent in every state in the US, as well as the District of Columbia. Additionally, in 45 states, the price tag surpassed the annual payments for the typical mortgage.
According to their data, the average annual cost of childcare for two children in Tennessee, including an infant and a 4-year-old, exceeds $22,374. Moreover, the average cost of housing stands at slightly above $17,388, while the average tuition cost amounts to $10,889.
A single parent family typically earns a median income of $32,374. This implies that childcare expenses would account for approximately 36-40% of their total income.
According to Child Care Aware, the increase in childcare prices can be attributed to the closure of many childcare providers since 2020. Additionally, some providers have raised their prices in order to retain their workers and ensure a safe environment for children.
Lawmakers should prioritize childcare in every state and allocate more funding to the system. This will enable families to benefit from subsidies, reduced childcare costs, and improved access and availability.
According to experts, it is crucial to address this challenge in order to prevent families from being unable to afford the system.
