(1) Child care costs vary widely in the United States
In 2018, the median annual cost of child care for one child – expressed in 2022 dollars – ranged from $5,357 to $17,171, according to the latest available estimates from the U.S. Department of Labor. But these figures differed significantly depending on several factors, including whether the program is:
Home-based, caring for a small group of children of various ages in a residential setting;
Or center-based, typically overseeing a larger number of children who are grouped by age in a nonresidential setting.
Center-based programs are often more expensive, especially for younger kids. And costs are higher in more heavily populated areas of the country. For example, the median annual cost of child care for infants under 2 years old in center-based programs in 2018 ranged from $8,310 in counties with fewer than 100,000 inhabitants to $17,171 in counties with populations of 1 million people or more. (These costs are again expressed in 2022 dollars.)
(2) Many families spend a sizable share of their income on child care
According to the Department of Labor, the median cost per child for paid care in 2018 was anywhere from 8.0% to 19.3% of the median household income in that county, depending on the age of the child, the type of child care program and the size of the county.
The most expensive form of child care in 2018 was for infants in center-based programs. The median cost per child of those programs in small counties was 12.3% of the median household income in those areas that year. The share rose to 13.9% in medium-sized counties, 15.7% in large counties and 19.3% in very large counties with 1 million people or more.
(3) Some forms of child care have become considerably more expensive since the coronavirus pandemic began
Between January 2020 and September 2024, the price of day care and preschool rose about 22%, according to data from the Bureau of Labor Statistics’ Consumer Price Index for All Urban Consumers (CPI-U). And it’s up 6% just since September 2023.
(4) For some parents, child care costs can be a source of financial stress
Two-in-ten parents who say they need child care reported in a fall 2022 Center survey that there were times in the previous 12 months when they didn’t have enough money to pay for it. Parents with lower incomes (38%) were especially likely to report challenges paying for child care that year.
(5) A majority of Americans say providing free child care would encourage more people to have kids
The U.S. fertility rate reached a historic low in 2023, and Americans are much more likely to perceive negative than positive effects of fewer people having children in the future, according to a spring 2024 Center survey. Against this backdrop, 60% of U.S. adults say the federal government providing free child care would be extremely or very effective at encouraging more people to have kids in the future.
A separate Center survey in spring 2024 found that general affordability concerns play a role in younger Americans’ decisions about having children. Among adults under 50 who don’t have children and say they’re unlikely to ever do so, 36% say a major reason why is that they can’t afford it. Another 24% say this is a minor reason they haven’t had kids.
Source: Pew Research Center