3 Surprising Stats: The Real Cost of Daycare in America
While daycare can be more affordable than what it costs to hire a nanny, it's expensive. Here are a few shocking facts about the cost of daycare in the U.S.
Image source: Getty Images
Child care costs are a significant financial burden. Care expenses take up a large chunk of the monthly household budget for parents without friends and family nearby to help with child care needs.
The latest study from Care.com shows that the average cost of child care in the U.S. continues to climb. If you're considering raising a family, make sure you prepare for the financial impact of needing to hire a caretaker for your children, so you're not caught off guard.
Saving up for care costs before having kids can be beneficial. We'll share some surprising stats about the cost of daycare in America found in the Care.com "2024 Cost of Care Report"
1. Americans spend an average of $321 per week on daycare
Care.com surveyed American parents to learn more about how much they're spending on child care expenses. Daycare is a popular care choice for many families and is one of the more affordable options compared to alternative solutions like hiring a nanny.
But that doesn't mean it's cheap. The study found that, on average, Americans spend $321 per week on daycare costs. That's nearly $1,300 spent monthly to send one child to daycare. For many households, that's as much or more than they might spend on their monthly mortgage. So, it's easy to see how this expense can impact a family's personal finances.
2. Parents spent 13% more on daycare costs in 2023
Compared to how much families spent on daycare expenses in 2022, Care.com found that the average family spent 13% more in 2023. Last year, parents spent an average of $284 weekly on daycare expenses.
This data shows that average daycare expenses aren't getting any cheaper. If you plan to start a family soon, you should anticipate that costs will be higher by the time you need to enroll your child in daycare. But these stats can still provide insight as you save for this upcoming expense.
3. Daycare costs in Washington, D.C. average $419 a week
Since the study examined average daycare costs nationwide, Care.com compiled a list of the most and least costly U.S. states and districts for child care expenses. The findings show that Washington, D.C., residents pay much more than the nationwide average. Here, the weekly daycare cost is $419 -- or slightly under $1,700 monthly for one child.
Parents should consider that they could pay less or more for care depending on what part of the country they live in. For families with the flexibility to move, living in a less costly area may offer savings on some expenses, like daycare costs. But that's not an option for all families.
Have a plan in place before you need to hire care
In addition to limited affordable care options, many daycare and child care providers have a long waitlist. Because of this, many families can't get care as quickly as they need it. Sixty-five percent of survey respondents had spent at least some time on a daycare center waitlist.
For parents who find a daycare center without a waitlist, it may not be their preferred option, or they may pay a higher price when compared to more affordable providers with long waitlists.
Make sure to budget enough for this necessary expense. Parents can prepare by setting aside money in a high-yield savings account before they get their first daycare bill.
Our picks for 2024's best credit cards
Our experts carefully review the most popular offers and select those that are worthy of a spot in your wallet. These standout cards come with fantastic benefits like sign-up bonuses worth $200 or more, 0% intro APR for up to 21 months, and cash back rates up to 5%.
Click here to see our top credit cards
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.
