Child care costs are consuming a significant portion of family incomes across America. For married couples, child care expenses account for about 13% of their income, while single parents face a much steeper financial burden.
In fact, single parents often spend more than half of their take-home pay on child care expenses, according to research by WalletHub.
"You could average $500 a week for 2 kids. For one kid, $250 a week," said Antuan Hill, owner of Little Dreamers day care center, which offers care on a budget for families who can't afford standard rates.
Many parents find themselves in difficult situations when balancing work and child care needs.
"There's a reason I don't use day care. I cannot imagine that on top of my bills right now," said Samantha Parker, a mom who relies on her mother for child care assistance.
Hear what you can do to save on child care below:
But WalletHub writer and analyst Chip Lupo said many families have no choice but to find child care solutions.
"In a lot of cases, childcare is unavoidable because you have to almost have to have dual income households," Lupo said.
What you can do to lower child care costs
The easiest and cheapest option is usually to have a grandparent or other relative to help out, at least a few days a week.
For parents without relatives to help, Lupo recommends several strategies to manage child care costs:
- Research state and federal subsidy programs for which you might qualify
- Team up with other parents to rotate child care or hire a shared nanny, which cuts the cost in half
- Evaluate your work flexibility. Can you work from home one or two days a week?
- Look for jobs offering child care benefits through flexible spending accounts (FSAs) or on-site daycare centers
If these options don't work, Lupo suggests considering relocation to states with lower child care costs.
"Move to some of these states with the lower child care costs, whether it's South Dakota, South Carolina where I am, or Mississippi, they're among the least expensive," he said.
Daycare owner Antaun Hill said many parents face a difficult choice in today's economy.
"You have to choose: Work or stay home with the kids," he said.
However, Hill tries to help struggling parents by assisting them in finding vouchers and other discount options to make child care more affordable.
He suggested you ask centers near you about vouchers and other forms of assistance if you can't afford it, so you don't waste your money.
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