Infant daycare costs: The request could not be satisfied

Average Cost of Child Care 2023

When planning for a baby, there are a number of costs that parents should take into consideration before their bundle of joy arrives. Child care is often the most expensive line item.

Access to reliable child care is essential for families who rely on this support in order to be able to work full-time jobs, attend school or fulfill their other responsibilities. This need was especially evident throughout the pandemic when parents, predominantly mothers, left the workforce in droves as schools, daycares and child care centers shut down or transitioned to remote models. Many women are still recovering from the financial impact.

Despite the need for child care, costs continue to rise for families across the country. In fact, a recent report by the organization ChildCare Aware of America found that child care costs are outpacing inflation by more than 3 percent. This, paired with higher costs of everyday goods like groceries, gas and housing, is making child care significantly less accessible, particularly for lower-earning families.

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Bankrate insight

• The average weekly cost of a nanny for one child in 2021: $694 (Care.com)
• The average weekly cost of a child care or daycare center for one child in 2021: $226 (Care.com)
• The average weekly cost of a family care center for one child in 2021: $221 (Care.com)
• The average weekly cost of an after-school sitter for one child in 2021: $261 (Care.com)
• Most expensive state for hiring a nanny: Washington, D.C.: $855 per week (Care.com)
• The average weekly daycare cost in Washington, D.C. (the most expensive state for daycare): $419 (Care.com)
• Percentage of parents who cite rising child care costs as their reason for adjusting their family plans: 43 percent (Care.com)
• Percentage of parents who spend more than 10 percent of their annual income on child care: 72 percent (Care.com)
• Percentage of parents who spend more than 20 percent of their annual income on child care: 51 percent (Care. com)
• The average amount spent on child care per month: $850 (Babycenter)
• The average amount spent on a nanny per month: $2,450 (Babycenter)

The cost of child care in various settings

The amount you can expect to pay for child care will vary greatly depending on the setting. Some parents might prefer to keep their child at home with a nanny, while others may want to take their child to a daycare center. Some parents may not need full-time care and opt for an after-school care program that gives them the extra time they need to get through their work day.

Here’s a look at the average cost of child care depending on the type of care you seek. These figures are based on the 2021 costs for infant children (with the exception of after-school care costs):

It’s also important to note that the amount you pay will also change depending on the number of children you have, as well as their ages. In most cases, you can expect to pay more for a delicate infant who requires more hands-on attention than you would for an elementary-aged child who is more independent.

With such a wide range of costs, it’s important to weigh your options and determine which environment will best meet you and your family’s needs.

Child care/daycare centers

Home/family care

Nanny/sitter

After-school care

The most (and least) affordable states for child care

Several factors will impact how much you can cover in terms of child care costs, including your location. Here’s a look at the five most affordable and least affordable states for child care, as well as the percentage of your annual income that you can expect to pay for child care, according to 2021 data from ChildCare Aware.

This data — as well as the table below showing the average cost of child care by state — is based on annual care costs for a four-year-old child in a center-based environment, taking into consideration the percentage of the state’s median income needed to pay the costs.

State	Average annual child care costs	Percentage of a single parent’s income	Percentage of a couple’s income
South Dakota	$6,677	22.1%	7.0%
Arkansas	$6,014	23.6%	7.3%
Mississippi	$6,500	30.2%	7.7%
Missouri	$7,465	25.7%	7.8%
Ohio	$7,966	29. 8%	7.9%

• State	Full-time, center-based care (4-year-old child)
  Alabama	$7,280
  Alaska	$9,600
  Arizona	$9,129
  Arkansas	$6,014
  California	$12,740
  Colorado	Data not reported
  Connecticut	$13,416
  Delaware	$10,634
  District of Columbia	$20,117
  Florida	$7,907
  Georgia	$7,899
  Hawaii	$11,058
  Idaho	$7,817
  Illinois	$11,440
  Indiana	$8,748
  Iowa	$9,356
  Kansas	$9,518
  Kentucky	$8,525
  Louisiana	$7,800
  Maine	$8,580
  Maryland	$12,437
  Massachusetts	$15,768
  Michigan	$11,315
  Minnesota	$13,416
  Mississippi	$6,500
  Missouri	$7,465
  Montana	$10,400
  Nebraska	$14,560
  Nevada	$11,090
  New Hampshire	$11,487
  New Jersey	$15,120
  New Mexico	$8,436
  New York	$15,371
  North Carolina	$9,359
  North Dakota	$8,952
  Ohio	$7,966
  Oklahoma	$9,396
  Oregon	$10,800
  Pennsylvania	$10,150
  Rhode Island	$11,700
  South Carolina	$9,941
  South Dakota	$6,677
  Tennessee	$8,759
  Texas	$9,880
  Utah	$8,268
  Vermont	$14,300
  Virginia	$11,804
  Washington	$14,844
  West Virginia	$9,100
  Wisconsin	$10,972
  Wyoming	$8,623

The state of child care today

Child care costs have been on the rise for decades. This is due, in part, to facility closures that occurred during the pandemic. Nearly 9,000 daycares closed in 37 states between December 2019 and March 2021, according to findings from a 2022 survey by ChildCare Aware.

Even more pressing these days is the impact of inflation. As noted above, child care costs are outpacing inflation by several percentage points. At the same time, families’ wallets are being squeezed by higher costs for everyday expenses like groceries, gas and housing. Especially for lower-earning families, a lack of wiggle room in household budgets is making child care significantly less accessible than before.

How parents and guardians are managing the costs

For many parents, coping with rising costs has been challenging. As a result, many have considered alternative options or made bigger lifestyle changes to make ends meet. According to a survey by Care.com, 31 percent of parents say they have considered taking on a second job, while 26 percent say they will reduce their work hours. Further, roughly one-quarter of respondents are changing jobs to better support their childcare needs, and more than 20 percent say they plan to leave the workforce altogether.

If you’re looking for a starting point to help you determine how much you can expect to pay for child care in your area, Care.com and CostofChildCare.org both provide useful calculators that can crunch the numbers for you based on your preferences and needs.

6 ways to lower the costs of child care

If you’re struggling to meet your child care costs, consider the following options for reducing your financial burden.

• Reach out to your employer: Some employers offer child care assistance as an added benefit for their employees. Revisit your employee benefits package, or contact your HR representative to see if this is an option for you.
• See if you qualify for a tax break: Per the IRS, you may be able to claim the child and dependent care credit if you paid expenses for the care of a qualifying individual to enable you (and your spouse, if filing a joint return) to work or actively look for work. This could help offset your care costs for this year or next.
• Check your flexible-spending account (FSA): FSAs are sometimes a part of an employee’s benefits package, and certain types can be used to offset child care expenses. You or your spouse can fund a dependent care flex spending account (DCFSA or FSA) and use those funds to reimburse your child care costs.
• Ask about a sibling discount: Many child care providers will offer a discount for additional children after your first. Taking all of your little ones to the same daycare or sitter can help you cut down on your commute and could score you a discount.
• Consider using a credit card: If you’re in a pinch, a credit card could help you cover the cost of child care, but this should be done cautiously. Aim to make at least the minimum payment each month, and pay your balance in full if possible. You may also want to look at whether paying your child care costs with a credit card can help you take advantage of your credit card rewards.
• Coordinate a nanny share with other parents: Sharing one care provider may be less costly than hiring a private nanny to watch over your children. Ask friends, family or neighbors if they’re open to splitting the costs of a shared nanny.

The bottom line

Child care costs can put a significant financial strain on a family — especially for today’s parents, who are up against a staggering inflation rate and are still battling the economic aftermath of the pandemic.

The exact amount you can expect to pay will vary greatly depending on your location, the number of children you have, their ages and the kind of care you seek. Still, there are plenty of ways you can reduce the cost of child care and make it manageable for you and your wallet.

New Childcare Data Shows Prices Are Untenable for Families

Filed in

Data and Technology

Worker demographics

Employment and Training

Working families

•
By:
Christin Landivar
•
January 24, 2023

Families with younger children in the United States pay a lot of money for child care. Whether it is after-school care or full-day care for infants, child care consumes a large share of family income among those who pay for childcare services.  

The National Database of Childcare Prices is a new source of data showing how prices vary by childcare provider type and children’s age in 2,360 counties across 47 states. This makes the database the most comprehensive source of local childcare price data. Using the database, the Women’s Bureau released a new report today that shows childcare prices vary substantially across the country, but prices are untenable for families even in lower-priced areas. Using the most recent data available from 2018 and adjusted for inflation to 2022 dollars, childcare prices range from $4,810 ($5,357 in 2022 dollars) for school-age home-based care in small counties to $15,417 ($17,171 in 2022 dollars) for infant center-based care in very large counties. These prices represent between 8% and 19. 3% of median family income per child.  

Two new interactive maps show childcare prices and childcare prices as a share of family income at the county level. These maps show that in nearly every county, childcare prices were high relative to family income, pricing families out of paid child care. Higher childcare prices are especially detrimental to maternal employment as mothers’ employment drops in areas with more expensive child care, even in places where women’s wages are higher.   

Even though child care is expensive, childcare providers operate on thin margins and childcare workers receive very low wages – a median of $13.22 an hour. This is lower than almost any other occupation, and wages fall below the living wage in most states, failing to meet childcare workers’ basic needs. Low pay in the childcare sector means that employers cannot attract sufficient workers and many areas are considered childcare deserts, leaving families with limited options. Yet, families cannot afford to pay more, meaning the childcare sector needs substantial government investment to function adequately and eventually prosper. Quality, affordable, accessible childcare supports higher employment and full-time work hours, reduces poverty, and reduces socioeconomic disparities in employment and early care and education. 

Learn more about the National Database of Childcare Prices, download our data, and explore the maps at: dol.gov/agencies/wb/topics/childcare.  

Christin Landivar is a senior researcher at the Women’s Bureau. Follow the bureau on Twitter at @WB_DOL. 

Tags:

• Women’s Bureau
• working women
• working families
• child care
• cost of child care
• child care workers
• data

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Business plan for a private kindergarten with calculations

Despite the fact that kindergartens quickly attract customers, during the launch of a business, it is necessary to carefully consider a marketing strategy and draw up a marketing plan.

It is necessary to start the advertising campaign of the kindergarten one month before its opening. Several tools are used to successfully enroll children in kindergarten:

• signboard,
• window advertising,0008
• internet,
• cross-marketing,
• word of mouth.

Kindergarten sign

The sign is a very effective tool to attract customers, because the kindergarten services are mainly used by those parents who live in the immediate vicinity. However, using a sign as a tool to attract customers is only possible if the kindergarten is located on the ground floor or in a private house. We not only develop a bright, memorable layout of a sign, but also pass on the algorithm for its approval.

Advertising in kindergarten windows

Advertising in windows is the second most effective marketing tool, but, again, it has limitations. It can only be used if the kindergarten is located no higher than the third floor. The higher the floor, the less effective such advertising works. Layouts are developed for our Partners, individually for each room.

Kindergarten leaflets

Nowadays, people are tired of the huge number of leaflets they receive in mailboxes and on the street. However, this tool can be very effective. Indeed, in leaflets we describe the advantages of our kindergarten, and clients receive recorded contacts by which they can be contacted. In order to increase the credibility of the leaflets and prevent the client from throwing them into the nearest bin, we, firstly, develop a colorful design project, and secondly, we entrust the distribution of leaflets to our branded life-size puppet, with which children can play and take pictures.

Kindergarten Internet Marketing

The Internet is of great importance in the life of a modern mother. Therefore, the first thing we do is create accounts on the most popular social networks. From the very beginning of our activity, we have been actively recruiting an audience with the help of targeting and interesting publications.

In addition, information about the Partner and his contact appears on the main site, and requests received from the site are immediately transferred to the Partner.

Be sure to place a point on Yandex and Google maps. This helps customers find a kindergarten faster.

Cross-marketing of the kindergarten

It is very important that as many people as possible learn about the kindergarten at the opening stage, so it is necessary to place information about the kindergarten in all places where mothers go:

• beauty salons,

9000 7 children’s goods stores,

• pharmacies,
• shopping malls.

The cross-marketing tool is well suited for informing about kindergarten kindergarten services, when we agree with related businesses on mutual advertising, i.e. we distribute our leaflets on their territory, and they place theirs with us. All companies that also focus on selling goods or services for mothers are suitable for such interaction.

Before starting work, it is necessary to draw up a marketing plan, in which it is necessary to prescribe the budget, frequency and duration for each tool.

In the future, the marketing plan is adjusted based on their statistics and its effectiveness.

Kindergarten budget items where you can save

The main goal of starting any business is to make a profit. Every business owner strives to increase this figure. On the one hand, you can work on increasing income, on the other – on reducing costs. Today we will talk about what you can save on in the work of a kindergarten, and what you can’t save on in any case.

The main thing for kindergarten is children. Parents bring their child to you, pay money and have the right to hope that their beloved child will be surrounded by exceptional care and attention. Therefore, everything that is directly related to children is prohibited to save money. What is it about?

Security. One of the most serious items of expenditure. When children are in the garden, you are fully responsible for their safety. Needless to say, what consequences can occur if something happens to one of the pupils. Represented? Scary? Therefore, we never save on this. The security system of the facility, video surveillance, a safe space for the child, perhaps even an insurance system are those articles that should be under your close attention.

We encourage all of our Sun School franchisees to have a child life insurance program. The child will be insured at any time – not only when he is in the garden, but also outside it.

Proper nutrition. The development of the digestive system, growth, the formation of the immune system and eating habits occur just in the period from two to seven years. Therefore, nutrition is an important aspect for kindergarten. At the same time, dishes should be not only healthy, but also tasty.

Education and toys. Today, special attention is paid to the early development of the child. Each interested mother can easily name at least 3-5 systems for the early development and education of a child. Any of these systems requires certain benefits, devices and other things, and they often cost a lot. It’s not worth saving.

Toys must also meet safety requirements, be of high quality, and have a meaningful meaning in terms of the development of the child. Toys must be in good condition, so they will need to be updated periodically.

Medicine. Maintaining health is another important aspect of the kindergarten. This includes monitoring the condition of the child when he is admitted to kindergarten, and the provision of “temporary” babysitting services. It should also be possible to isolate a sick child from other children in the garden. In this regard, it is highly desirable to have a full-time medical worker in the kindergarten.

Personnel. Kindergarten staff is a powerful resource for its full-fledged work, increasing customer loyalty. What child wants to go to kindergarten if there is a teacher waiting for him who he does not like? A good educator is a professional in his field, with the appropriate education, able to teach children, provide additional knowledge and skills, and most importantly, who loves children and knows how to get along with them. Such specialists are highly valued in the labor market, so do not be stingy, choose worthy representatives of this glorious profession, and your investments will pay off handsomely.

All of the above areas are not only expenses as such, but also a matter of image, the perception of the institution by potential and real customers. Savings on any of these articles, noticed by your customers, can lead to very disastrous consequences, especially if this information becomes public.

With many years of experience and expertise, we always help our franchisees with the solution of all the above issues in terms of recruiting, working out the security system, choosing the optimal insurance package, development and training systems, etc. This allows the franchisee of the Sun School network from the very beginning of its activity to manage resources as wisely as possible.

What you can save on

There are items of expenses where you can still save.

Reducing outsourcing costs

Consider if there are areas of work that are currently outsourced, but you could do them yourself or reassign responsibilities to employees in a way that eliminates unnecessary costs. These can be accounting services, grocery shopping, organizing any events, cooking for children, etc.

Optimization of marketing costs

Another article is marketing and advertising. Here you need to be extremely careful. Excessive savings can lead to lower income now or in the future, and this is definitely not what you want. In what cases can this method be used? If your garden is already completely filled and you are not going to expand in the short term. You can use low-budget ways to attract customers and build a reputation.