Child care cost as much as rent for many families at inflation's peak, new data shows

[BumRushDaShow]

Source: NBC News

Nov. 24, 2024, 8:00 AM EST


Many families have been effectively cutting a second rent check to send their kids to day care, according to new data from the Department of Labor.

It’s no secret that child care expenses have put a huge squeeze on households across the U.S., but the federal numbers show just how steep those costs became from one county to the next during the worst inflation in 40 years. On average, families spent anywhere from $6,552 to as much as $15,600 on full-day care per child in 2022, the latest year with available data.

That upper range is a few hundred dollars more than that year’s median annual rent, the agency noted. While incomes also range widely throughout the country, households typically funnel between about 9% and 16% of their annual income on day care per child. “These costs are just untenable for an awful lot of families,” said Gretchen Livingston, the branch chief for quantitative research at the Labor Department’s Women’s Bureau, which conducted the study.

The findings offer a snapshot of one of the biggest financial pressures Americans faced in the lead-up to the 2024 election, in which a driving factor was voters’ price-fatigue hangover that even a sturdy economy can’t seem to cure. But while child care costs help explain Americans’ economic dissatisfaction, an NBC News analysis of the Labor Department and election result data also hints at the limits of the issue politically.

Read more: https://www.nbcnews.com/business/economy/child-care-cost-much-rent-many-families-inflations-peak-new-data-shows-rcna180875

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Link to Department of Labor STUDY - NEW DATA: Childcare costs remain an almost prohibitive expense

[BOSSHOG]

1. Child Care is financially eating up the young folks in our town

I asked an acquaintance why the Catholic Church did not offer free child care. Didn’t get an answer.

[Igel]

4. I think the answer's obvious.

If you just take Catholics' kids, welcome to litigation hell.

If you don't, you're in for a lot of demand. The demand curve when the price is $0 is not forgiving. And if parishioners kids are excluded but they're footing the tab, good luck saying, "Be a good Samaritan."

Then there are the regulations and common-sense requirements--how many kids/care provider, space, environment. In Texas for 18-23 month olds it's 1/9. So each kid costs, right off the bat, 1/9th of a caregiver's wages/benefits/payroll taxes. Then there's food, kitchen equipment, inspections;, premise maintenance health safety inspections for the premises; supervisor pay; facility cost; insurance for employees and children and premises; legal services for misc. regulatory compliance, local/state/federal,, business licenses/DBA cost. For those in school, there are buses, driver's, vehicle insurance and maintenance. Plus any advertising and keeping toys/print material/computer tech current. And if there are field trips, well, budget for that.

If any of those increase--more caregiver pay or certification that reduces supply, food/utility costs increase, tax increases or increased regulation--you see it all funneled right back to whoever's picking up the tab. We chose professionalized childcare, we pay for professionalized childcare. Why don't Catholic churches fund it for everybody? Each diocese is an independent financial organization and often have limited means these days. So while the Vatican may have $ (or not, their books are closed for cash accounting/liquid investments even if they have highly appraised real assets which if suddenly all put on the market would be much less highly appraised), that's not available to your local parish church and that church is no more needy than a rural non-governmental church in rural China or a church in Zambia.

[Yavin4]

2. This is why people are not having kids.

Not because of feminism or the LGBTQ+ community.

[OldBaldy1701E]

3. All by design.

They want females in the home raising babies and fixing dinner. They don't want females working and being seen as smart or competent. They want control. This is how they are doing it. Wear down the whole concept so that no one will want to have kids without conforming to their idea of the 'family unit'.

[TBF]

5. I don't know how common it is but sometimes schools have daycare --

I read about these in UpNorth News (Wisconsin). One example is in Blair, WI (western part of the state - rural area):
https://www.btsd.k12.wi.us/schools/childcare/

It makes a lot of sense to add a daycare to a school if they have the space (or can renovate). So much easier for parents to drop off all their kiddos in one place, and you'd already have gym space for exercise when it's cold out, and cafeteria with warm meals! I'd love to see tax $$$ go to things like this rather than more tax cuts for billionaires. So, I'm sure it will not make it into Trump's budget plan. But it really does seem like a great idea.