Input Stories

Input Stories

Parents Consider Changes as Child Care Costs Rise

Child care rates are through the roof in part because thousands of centers closed down during the pandemic, according to CNBC.

Rates rising: According to a survey by, 63% of parents report child care has become more expensive in the past year.

  • The cost of nannies went up about 20% over the course of the pandemic, and the cost of babysitters rose by between 5% and 15%.

Child care spending: About half of parents say they spend more than 20% of their household income on child care, and 72% said they spend more than 10%.

  • The U.S. Department of Health and Human Services defines child care as “affordable” if it costs less than 7% of a family’s household income.

Reason for cost spikes: While high inflation levels are playing a role in raising child care costs, the problem largely stems from COVID-19-induced closures. According to Child Care Aware, about 9,000 child care centers closed between December 2019 and March 2021.

  • Closures have led to two-year-long waitlists at some child care centers and put babysitters and nannies in high demand.

Parents make changes: To deal with rising child care rates, many parents are considering taking on another job, changing jobs, reducing hours at work and leaving the workforce entirely.

Employers stepping up: Fifty-six percent of employers offer child care benefits, according to Manufacturers are at the forefront of these.

View More