Breaking the Piggy Bank: Parents and the High Price of Child Care

This report presents data on child care prices collected from a nationwide survey of State Child Care Resource and Referral Networks and local Child Care Resource and Referral agencies (CCR&Rs). The report also analyzes findings from a series of 14 focus groups conducted with parents in seven cities across the country. The report found that 90% of the parents in the focus groups who had considered leaving the workforce to stay home with their children decided to continue working. 

Child care costs were found to be a significant part of parent expenses, often forcing parents to choose between quality care and basic living expenses. The average yearly child care cost for a four-year old child in the regions studied varied between $3,016 and $9,628. Care in an accredited facility may cost nearly $5,000 more than non-accredited care. In 38 states, families earning less than $18,000 yearly would have to spend 30% of their income to afford the average cost of care for an infant. In five states, the average cost of child care for two children exceeded $18,000 annually. In 49 states, annual child care prices for two children exceeded median rent costs.