Is There a Crisis with Child Care?

Families Feeling the Squeeze with Cost of Child Care

It's not long after the miracle of birth and joy of having a family (or adding a new member) that the financial reality sets in of another mouth to feed and care for. When parents work, quality child care is a necessity. And that doesn't come cheap. The sticker shock of daycare can leave new parents reeling. For for families with more than one child, child care can eat up one salary, leaving parents wondering both working is worth it. But without that second salary, dreams such as a house and new car may not be obtainable. Families are feeling the pinch, and traditional "middle class families" seem to be hit especially hard. And that's where the "crisis" comes in.

The National Association of Child Care Resource and Referral Agencies (NACCRRA) has recently released a survey of average prices charged for child care for infants and 4-year-olds in centers and family child care. Not surprisingly, child care is considered a major household expense for parents of young children, with fees in licensed centers reaching up to $10,920 a year for a preschooler and up to $14,647 a year for an infant. Average family child care fees are slightly less pricey, reaching as high as $9,002 for a preschooler and $9,508 for an infant. That's a huge chunk of change out of a family budget. When you add to it the cost of diapers, formula, early foods, and other supplies and clothing needed for kids, it's clear how the costs rack up fast.

Other findings from this survey include:

• Child care prices are high relative to other household expenses. The NACCRRA cites that child care fees for an infant are higher than the average amount that families spend on food.



• Child care is particularly unaffordable for single parents. With only one income, it's no surprise that child care is a particularly hard hit. Many single parents are raising kids without the financial assistance of the other partner, creating a financial drain on an already-slim pocketbook.



• The price of child care is rising faster than inflation. The price of full-time infant care in a center increased an average of 6.9 percent, while the price of full-time care for a 4-year-old in a center went up 6.7 percent during the study period. A sobering fact is that both of these increases are more than twice the rate of inflation (reported as 3.2 percent rate by the Department of Labor) for the period reviewed. Keep in mind that child care is a profession, and caregivers work hard and have to pay their bills too!
  
  
• Family child care can be less expensive, but quality is a concern. Family child care can be a wonderful and quality solution for many families. However, some family child care settings are unregulated and quality could be lower. NACCRRA research has shown that parents have reported that they have had to accept lower quality care to be afford child care for their kids--a truly scary thought.
  
  

While reaction could be that parents should simply have one parent stay home, that solution isn't always feasible. One income is doable with certain family situations, especially where the sole breadwinner makes a good salary. But, in the case of many families, both salaries (even though a huge chunk of one goes to child care), still provides some income and other factors such as health insurance. And in today's time of job layoffs and other employment scares, families are often reluctant to put all their income expectations into one job.

What can parents do to find quality and affordable child care? Consider these actions:

• Determine if your family qualifies for subsidized child care or other assistance through the government.



• Check with employers to see if they offer any reduced child care fees or savings. Many large companies, for example, negotiate with nearby child care centers for substantial discounts.



• If using family child care, be sure you are comfortable with the caregivers level of experience, home setting, safety features, and overall care of kids. Family child care can be a wonderful and nurturing experience for kids as long as it is a quality early education setting. Be prepared to ask a lot of questions!



• Don't be afraid to change child care settings if it is best for your family. Some families opt for one type of care for an infant but change to another type, and often less expensive, care when a child becomes a preschooler. Don't get locked into the same place or caregiver unless you believe the care continues to provide the best atmosphere and learning environment.



• Review family finances and make sure it continues to make prudent budgeting sense for both families to work and pay for child care. Sometimes, part-time employment with full-time care may mean that the family is paying out more than it is taking in each month.

What can the government do? The NACCRRA recommends these actions:

• Increase federal and state investment in child care subsidies and quality improvement activities so that more high-quality child care options are available to and affordable for parents.



• Provide resources for planning and developing child care capacity to increase the availability of child care options for working families.



• Reduce barriers in the subsidy administration process that prevent eligible families from accessing child care assistance.



• Ensure that public pre-kindergarten programs are designed to meet the child care needs of working families.


• Improve federal and state tax codes to help families at all income levels pay for child care.