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U.S. Families Struggling with Rising Child Care Costs

image of kids drawing toy with child care written on it

1.5 minute read

For the 10th year in a row, child care costs have risen, according to the Cost of Care Report. Of 3,000 parents surveyed, 67% are spending 20% of their annual income or more on child care. This is up from 51% in 2022.

Child Care Costs

The U.S. Department of Health and Human Services considers child care unaffordable if it exceeds 7% of a family’s income. On average, U.S. parents spend 27% of their income on child care and 89% spend 10% of their income or more.

Rising costs are due to increased fees, inflation, and parents’ changing work situations (hours needed, changing work locations, etc.) The increased need for child care has driven prices higher and created accessibility issues.

Cost and accessibility issues can be especially challenging for single parents, who were more likely to take on a second job or adjust their work hours. Lower- and middle-class families are also affected, more likely spending a higher percentage of their total income on child care.


Employer Takeaways

Child care expenses have an impact on working parents, often leaving them no choice but to adjust their work schedules or take on a second job to afford care. Employers can help ease this burden by offering flexible benefit options that cater to families’ specific needs. These options may include subsidies for child care, on-site day care facilities, and the availability for back up day care services.

Download the bulletin for more details.


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National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.

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Erin Eby

Erin Eby

Erin Eby’s favorite part of her job, is connecting with people face to face. With a background in insurance and customer service, she enjoys educating and helping her clients understand their benefits and needs. As an Account Representative, Erin specializes in Life, Disability, Vision, Dental Insurance and Worksite Benefits. She will be working with schools, cities, and counties in Nebraska, Iowa, and South Dakota. Erin is a licensed insurance agent and has a Group Benefits Disability Specialist designation.