Most U.S. families don’t earn nearly enough to afford child care, study finds

The cost of child care in the United States is a significant financial burden for many families, with the typical American household earning too little to comfortably afford these services. According to a recent analysis by LendingTree, households need an annual income of nearly $403,000 to cover the cost of care for two children, as recommended by the Department of Health and Human Services (HHS).

In comparison, the median annual family income in the U.S. as of 2024 was $105,800, according to the Federal Reserve Bank of St. Louis. This means that the average cost of full-time child care for a family with an infant and a 4-year-old, which amounts to $28,000 according to Child Care Aware of America, is a significant financial strain for most families.

Families with two children spend an average of $2,252 per month on child care, which is more than the cost of rent in many major cities across the country. Federal labor data from 2022 shows that families spend between 8.9% and 16% of their median income on full-time care for one child, highlighting the financial challenges that families face when it comes to affording child care.

The rising cost of child care has prompted lawmakers and policymakers to take action. In New York City, Mayor Zohran Mamdani and Governor Kathy Hochul recently announced a plan for free child care for 2-year-olds as part of a broader initiative to bring universal child care to the city. Other states, such as Kentucky, have also made efforts to implement universal Pre-K programs, emphasizing the benefits for education and families.

The high cost of child care remains a pressing issue for many American families, forcing parents to make difficult choices about whether to have children or not. As policymakers continue to address this issue, it is crucial to find solutions that make child care more affordable and accessible for all families.