Source: Fortune.com
Summary
A recent LendingTree study found that the average American family would need a 176.5% pay hike to afford childcare, with the average annual cost of care for an infant and a 4-year-old being $28,190 nationwide. The federal guidelines state that childcare is affordable if it consumes no more than 7% of household income, but most families fall short of this benchmark. The study also found racial disparities in affordability, with American Indian and Black families needing over 300% more income to hit the affordability benchmark.
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The numbers tell one story.
LendingTree’s study reveals a stark reality: childcare costs are astronomical, and most families can’t afford them. The average two-child household would need a significant pay hike to reach the affordability threshold. The situation is even more dire in certain states, with Hawaii requiring nearly 270% more income to afford childcare. The racial disparities in affordability are also alarming, with some families needing over 300% more income to hit the benchmark.
It’s going to require a concerted effort from leaders to change the state of childcare costs, but that change isn’t coming anytime soon.
Author: Evan Null
