When you have a baby, you understand your life is going to change significantly.
Youre responsible for another human being.
Youll lose tons of sleep.
Looking for more help? Read how FSAs, employer programs and tax benefits can help youmanage the cost of child care.
And, of course, youll have a bunch of new expenses.
But one of the biggest expenses that hits parents is child care.
The Penny Hoarder surveyed 2,000 parents in September 2021 asking about how child care costs affected their lives.
The Financial Toll of Child Care
For working parents, child care is a necessity.
Yet, its often challenging to secure and afford quality care.
Our team has compiled alist of creative waysyou can fatten your bank account this week.
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How Much Does Child Care Cost?
Half the parents we surveyed reported spending at least 25% of their income on child care.
Thats a significant increase from when The Penny Hoarder surveyed parents about the cost of child care in 2018.
Back then, the median percentage of income parents said they spent on child care was 15%.
Did you know?
Four out of 10 parents say theyve gone into debt due to the cost of child care.
Over a quarter of parents have had to move to a different home to afford child care.
Almost 38% of parents have had to take on a second job or side hustle.
Having to pay a child care provider makes it tough to meet other financial responsibilities.
Leaving the workforce has ripple effects beyond a loss of income.
Many stay-at-home parents find it difficult to return to work due to gaps in their employment history.
They lose out on opportunities for career advancement.
Seventy percent of parents said stimulus check money helped with the cost of child care during the pandemic.
This financial assistance, however, is temporary.
Survey responses are weighted so that each response is representative of the U.S. population.
Nicole Dow is a senior writer at The Penny Hoarder.
Chris Zuppa, The Penny Hoarders multimedia content creator, contributed to this report.
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