The expense of child care has become a heavy burden for parents across the United States.
Savinly commissioned a survey of 2,000 parents in September 2021, and roughly 84% said they found child care costs overwhelming.
Most respondents reported spending at least $750 per month on child care, and half said those expenses consumed at least 25% of their monthly earnings.
Over the past 18 months, though, something unprecedented occurred. Through stimulus payments and expanded child tax credits, numerous families received direct government support for the first time. The credits provided $300 each month for children under 6, and $250 monthly for children ages 6 through 17.
That pandemic-era aid offered families a preview of what consistent financial help can do to offset child care costs. Unsurprisingly, the assistance was widely welcomed.
Federal help
Seven in 10 parents we polled said they used their stimulus funds to cover child care expenses.
More than half are getting the monthly child tax credit, and 83% of those households reported the payments were useful for paying child care bills.
While $300 per month per child usually doesn’t cover the full cost of daycare, it can noticeably lighten the load.
Congress is debating whether to prolong the enhanced child tax credit. Some lawmakers, however, are concerned about the expense of extending the program and about parents receiving monthly payments even if they don’t have earned income.
The monthly payments are set to stop in December, leaving many families uncertain about how they’ll manage to keep their children in care.
Stress looms
One in five parents we surveyed said they won’t be able to continue paying for child care once those payments stop. And some will be surprised when that time arrives — about 37% said they didn’t know when the monthly payments end.
Nearly 70% of parents report feeling anxious about what their child care expenses will look like in 2022. Almost a third of respondents believe child care costs will be harder to manage next year than they are this year.
The price of child care already forces parents to make major compromises, such as relocating, leaving the workforce or taking on debt. Almost 63% of parents say the cost has influenced their decision about whether to have another child.
Searching for lasting solutions
For a lucky minority, a more stable option exists: child care support provided by employers.
But that workplace benefit is rare. Only 16% of parents we asked said their employer currently offers help with child care costs.
What if more employers provided child care stipends? Nearly 66% said they would consider changing jobs to work for a company that does.
Among parents who said they frequently feel overwhelmed by child care expenses, 76% said they’d contemplate switching employers to obtain such assistance.
“Historically, employers haven’t been quick to tackle child care issues at work,” said Theresa Adams, senior HR knowledge advisor for the Society for Human Resource Management.
Still, the pandemic underscored the need to better support working parents, she added. Many organizations shifted policies so employees could work remotely and have more flexible schedules.
Even prior to the pandemic, a small share of employers offered benefits like reduced rates at nearby child care centers, on-site care, or help with referrals and backup care, Adams noted.
If you’re unsure about what your employer provides, Adams recommends contacting your human resources department or reviewing benefits materials from your last open enrollment or when you joined the company. Your workplace’s employee assistance program (EAP) might also be able to help locate affordable care in your region.
If your employer doesn’t currently offer child care help, it can be worthwhile to express interest in those benefits. Some employers simply don’t realize the needs of their staff or the advantages of offering child care support, Adams said.
“I think the pandemic pushed this issue into view,” she said. “But I don’t think progress has moved as far as it could or should.”
Methodology: Savinly used Pollfish to run a national survey about the cost of child care, with 2,000 people completing the questionnaire Sept. 8–10, 2021. Survey responses are weighted so each response represents the U.S. population.
Elena Martinez is a senior writer at Savinly. Chris Zuppa, Savinly’s multimedia content creator, contributed to this piece.
