: ‘Child care is slipping farther and farther out of reach’: Rising child-care costs outpace inflation

by | Oct 14, 2022 | Stock Market

Rising child-care expenses managed to slightly outpace inflation last year, with the national average cost of care hitting about $10,600 annually, according to a new report. In fact, 2021 marked the third consecutive year of child-care prices soaring faster than overall inflation, according to Child Care Aware of America, the advocacy group that released the report Thursday.

In most states, the cost of placing two children in a center-based child-care program even exceeded annual housing payments, according to the report. Center-based care for two kids in Washington, D.C., might have cost a family an average of $45,640, for example, while their annual rent, if at the median price, could have been $19,284.  “In 2021, the average annual inflation rate was higher than usual at 4.7%, but child-care prices rose by an average of 5% when compared to 2020 prices,” the organization said in a statement. “This means families with children were more likely to struggle to afford child care on top of essentials such as food, housing and transportation.” The average family with at least one child under the age of 5 typically has to devote about 13% of their household income to child care, often during a period when the parents lack the kind of earning power and savings they need to reasonably afford the expense, according to a paper published by the Treasury Department last September. (Child Care Aware of America said in its most recent …

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