Infant care costs at least 10% of family budgets in most states: Study

Oct 31

Lauren Taylor Anchor

By Lauren Taylor (Anchor), Shea Taylor (Producer), Bast Bramhall (Video Editor)

It’s no secret having kids is expensive — from keeping them fed and clothed to making sure they’re cared for at all times — but it’s hard to say exactly how expensive they are. Now, for the first time, we’re getting an idea, at least when it comes to babies.

A newly released study by Brankrate shows care for just one infant costs at least 10% of a family’s yearly income in nearly every state. Child care has become one of the biggest expenses for parents nationwide, and Bankrate’s analysis found full-time center-based care in the U.S. cost an average of more than $14,000 in 2023 alone.

Download the SAN app today to stay up-to-date with Unbiased. Straight Facts™.

Point phone camera here

Bankrate found that’s more than a household’s average yearly budget for things like groceries ($9,985/year), health care ($6,159/year) and transportation ($13,174/year). In fact, the only big yearly expense Bankrate found costs more than infant care is housing, which costs an average of $25,436 a year.

Bankrate found there are only two states in the U.S. where child care adds up to less than 10% of a family’s yearly budget: North Dakota and South Dakota. Although North Dakota is pretty close, averaging 9.8%, South Dakota comes in at 8.7%

Infant care is the least affordable in New Mexico and Hawaii where it eats up more than 20% of a household’s budget every year. On average, American families spend about 15% of what they make on full-time center-based child care and for half the states, it’s more.

The nonprofit Child Care Aware America said most of the cost of child care goes to staffing because care centers are required to have a high ratio of adults to children for health and safety reasons. Even still, a recent analysis by the Federal Reserve Bank of Chicago found the median wage paid to child care workers is in the bottom 5% of all occupations.

Tags: Affordable housing, Bankrate, Chicago, Children, Economy, Federal Reserve, food, Hawaii, Health, Health Care, Illinois, Money, New Mexico, North Dakota, South Dakota, Study, Wages

IT’S NO SECRET HAVING KIDS IS EXPENSIVE – FROM KEEPING THEM FED AND CLOTHED TO MAKING SURE THEY’RE CARED FOR AT ALL TIMES… BUT IT’S HARD TO SAY EXACTLY *HOW* EXPENSIVE THEY ARE.

NOW, FOR THE FIRST TIME, WE’RE GETTING AN IDEA – AT LEAST WHEN IT COMES TO BABIES.

A NEWLY RELEASED STUDY BY BRANKRATE SHOWS CARE FOR JUST ONE INFANT COSTS AT *LEAST* TEN PERCENT OF A FAMILY’S YEARLY INCOME IN NEARLY EVERY STATE.

CHILDCARE HAS BECOME ONE OF THE BIGGEST EXPENSES FOR PARENTS NATIONWIDE… AND BANKRATE’S ANALYSIS FOUND FULL-TIME CENTER-BASED CARE IN THE U-S COST AN AVERAGE OF MORE THAN 14-THOUSAND DOLLARS IN 20-23 ALONE.

BANKRATE FOUND THAT’S MORE THAN A HOUSEHOLD’S AVERAGE YEAR BUDGET FOR THINGS LIKE GROCERIES, HEALTH CARE AND TRANSPORTATION.

IN FACT, THE ONLY BIG YEARLY EXPENSE BANKRATE FOUND COSTS MORE THAN INFANT CARE IS HOUSING – WHICH COSTS AN AVERAGE OF AROUND 25-THOUSAND DOLLARS.

BANKRATE FOUND THERE ARE ONLY TWO STATES IN THE U-S WHERE CHILDCARE ADDS UP TO LESS THAN 10 PERCENT OF A FAMILY’S YEARLY BUDGET – NORTH AND SOUTH DAKOTA… ALTHOUGH NORTH DAKOTA IS PRETTY CLOSE, AVERAGING 9 POINT 8 PERCENT.

SOUTH DAKOTA COMES IN AT JUST UNDER 9 PERCENT.

INFANT CARE IS THE **LEAST** AFFORDABLE IN NEW MEXICO AND HAWAII – WHERE IT EATS UP MORE THAN 20 PERCENT OF A HOUSEHOLD’S BUDGET EVERY YEAR.

ON AVERAGE – AMERICAN FAMILIES SPEND ABOUT 15 PERCENT OF WHAT THEY MAKE ON FULL-TIME CENTER-BASED CHILDCARE… AND FOR HALF THE STATES – IT’S MORE.

THE NONPROFIT CHILD CARE AWARE AMERICA SAYS **MOST** OF THE COST OF CHILD CARE GOES TO STAFFING BECAUSE CARE CENTERS ARE REQUIRED TO HAVE A HIGH RATIO OF ADULTS TO CHILDREN FOR HEALTH AND SAFETY REASONS.

EVEN STILL – A RECENT ANALYSIS BY THE FEDERAL RESERVE BANK OF CHICAGO FOUND THE MEDIAN WAGE PAID TO CHILDCARE WORKERS IS IN THE **BOTTOM 5 PERCENT** OF **ALL** OCCUPATIONS.