The Rising Cost of Child Care – Smarter Finance Journal

The Rising Cost of Child Care

childcarecostThe cost of child care is one of the largest annual expenses for families in today’s world. Single-parent households that earn a median income spend on average one quarter of their yearly earnings on child care, while families who live in poverty can spend up to 85 percent of their annual income on child care.

The average cost is dependent on age — baby and toddler care is the most expensive averaging more than $11,500/year nationally.

As your kids age, generally the price of care drops — the average price for a preschool aged child is approximately $8,800/year.

Child Care Aware, nationally recognized child care organization, has stated the the cost of childcare can far surpass the cost of sending a student through four years of state college. This is a big reason raising a child to the age of 18 is now costing families $250,000 on average. This may be the reason that the birth rate in America is at a record low.

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