The (ones raising) kids are not alright

[JOEY TRIBIANI]

How you doin’?

[SIMONE DELROSARIO]

Each year the Federal Reserve asks that question to Americans about their financial well-being. And most adults are like,

[LARRY DAVID]

Pretty good. Pretty…pretty…pretty pretty good.

[SIMONE DELROSARIO]

But for one notable exception: Parents. No, the parents aren’t alright, according to the latest Fed survey.

The share of adults living with their kids under age 18 who say they are doing at least ok financially dropped 5 percentage points in one year, while it was unchanged for all other adults. 

At 64%, it’s the lowest share of financially ok parents since the Fed started breaking this down in 2015, and it’s 11 points lower than the 2021 high. 

I’ve got one word for you (or two, depending on who you ask): Childcare.

For parents paying for childcare, they’re typically spending the equivalent of 50 to 70% of their monthly housing payment on childcare costs. The Fed compares these two things because a housing payment is usually Americans’ single biggest monthly expense. 

The Fed says the median childcare expense is $800 a month, and $1,100 for those needing 20 or more hours per week. 

The results are even worse in a new report by Child Care Aware of America. They say the average cost of childcare for two kids is now greater than the average rent in all 50 states. 

The plight of parents is a big reason legislation that would expand the Child Tax Credit soared through the House 357 to 70. 

The bill would increase the max refund per kid to $1,900 for the 2024 tax year and $2,000 for 2025. Which, frankly, is about two months of childcare. 

But the Senate has yet to vote on the bipartisan bill, taking issue with some of its provisions. 

Without the expansion, the max refund of the existing child tax credit is $1,600. 

I’m Simone Del Rosario. For more unbiased, straight facts, download the SAN app.