Week 7 - Material review: "Child Care Is More Expensive Than Rent for the Average American Family"

*this can be considered as lecture 11*

What key finding did the Child Care Aware of America report reveal about child care costs in 2023?

The cost of child care for two children exceeds average rent payments in every U.S. state — by at least 25% nationwide and more than double in eight states and Washington, D.C.

Which state had the highest child care costs compared to rent?

Vermont, where child care for two children costs $35,016 per year versus $13,788 for rent

What is the average cost for one child in care in the U.S.?

About $11,582 per year (a 3.7% increase from the previous year).

How much of a married couple’s income does child care typically consume?

Around 10% of income, even though the U.S. government recommends it should not exceed 7%.

What are some financial consequences of rising child care costs?

Parents are being squeezed financially, taking second jobs, or leaving the workforce because care is too expensive.

Who mentioned that lack of affordable child care makes it “too hard to be a working parent”?

Treasury Secretary Janet Yellen, in a January speech.

What other economic pressures are American households facing besides child care costs?

High inflation, rising housing prices, and rents growing faster than wages in about half of major U.S. metro areas.

According to CCAoA CEO Susan Gale Perry, how do housing and child care costs affect families?

They leave families with very little money for other essentials like food, health care, or personal needs.

What are some common coping strategies families use when child care is unaffordable?

Parents may quit their jobs, provide care themselves, or rely on grandparents and informal caregivers.

How many children may lose access to care because of the child care cliff?

An estimated 3 million children, with thousands of programs expected to close.

Which organization provided the estimate about potential closures due to the funding cliff?

The Century Foundation.

What was the “child care cliff” mentioned in the report?

The end of $24 billion in federal pandemic-era funding in September, which had kept many child care centers open.

What general trend does the report highlight about the affordability of raising children in the U.S.?

Rising costs of child care, housing, and living expenses are making it increasingly difficult for families to stay financially stable.