Why Childcare Has Become So Unaffordable | Business Insider Explains | Business Insider

Childcare costs are skyrocketing, forcing families to move across the US. But there may be a light at the end of the tunnel.

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00:00 - Intro
00:21 - Costs Of Raising A Child
01:08 - Childcare Expenses
01:52 - Why The Cost Is Up
02:25 - The Impacts Of Higher Prices
4:38 - Credits

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#childcare #personalfinance #businessinsider

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Why Childcare Has Become So Unaffordable | Business Insider Explains | Business Insider

[StefandeJong]

"Daycare workers don't want to work at daycare because of super low pay" and "daycare is getting way too expenaive. Something is missing here, lol.

[djp]

Childcare? I can't even afford myself care. People at my job live in vans in the parking lot because housing is so insane.

[angelainamarie]

Please explore further what's going on between: "Childcare is SOOO expensive, 'cause it's hard to hire childcare workers, who *don't make very much so it's not attractive.*" I'm just wondering, WHERE is the money going if not to the workers? Please explore the root of this problem.

[yotsuba]

Perhaps this is why population is decreasing in many countries

[HypatiaMuse]

I don't even make 26k a year, and I take care of people with Alzhiemers.

[diabloninja]

My spouse is an in home licensed daycare provider. She can have 6 kids total. Her state subsidy payment for low income families is roughly $150 a week, meaning if that's all she took, her income is capped at $46k. She also pays 15% self employment tax, in edition to other expenses.

Daycare is expensive because of head count limits.

[arcanernz]

The reason childcare is expensive and daycare workers are underpaid can be contributed to business expenses. The amount paid for rent, health insurance, certifications, and taxes I'm sure are main contributors to what's driving up cost and down pay. Most childcare places that have good service and relatively affordable are either associated to non-profit institutions, private institutions (like daycare at Google) or government institutions (like Universities). Having a stand-alone daycare business is very tough if you're trying to do a good job at an affordable price.

[starcherry]

This is why its so important to have a good relationship w/ your parents
Count your blessings if you have parents or other family members who will help watch your kids while you're at work

[GardenerEarthGuy]

Insurance companies and government licenses are a major cost to running a childcare center.

Blame Insurance people and government agencies for the problem.

[dimon]

> child care cant wait till this pay bill is gone

Wait till you need to pay for their college, university, car and mortgage downpayment. This is where the actual "fun" begins.

[danielnielsen]

There is also a massive cost to the society when the SAHM/SAHD misses out of work experience for several years - imagine staying at home for 5-7 years. That's missing out on a lot of work experience and promotions for the individual person - and alot economic activity and taxation for the wider society.

[davidgibson]

Not true that it goes away after they go to school. Most of the time you need after school care and during the summer you need care as well.

[MoceansParadigm]

Childcare shouldn’t even be a thing. We should be able to take care of our own children. We should be encouraged and supported. Aren’t the children the future of society? Then shouldn’t society support us in taking care of our kids??

[johnl.]

Beginning of life and end of life all needs a lot of human care.

[thecalvinprice]

As a parent of a toddler in daycare, in New Zealand, I can confirm things are ridiculously expensive. We opt for the second hand everything that we can, especially clothes, but even reusable nappies/diapers. We scrape by, but there are parents far worse off than us.

[oxpolitik]

Having children never makes economic "sense."

[icecreambars]

As an Indian I can confirm Our mothers and grandmothers don't take any fee but appreciation, now i get it why we are most populated. The cost of raising a child is minimal just the food, until she or he turns 14 cause till 14 the cost of education is free. Yet India is still a developing economy, so US still has an upper hand here. Btw love Business Insider!

[harryporter]

Don't forget the Before & After Care for single parents with grade-school age kids that make too much for POC but not enough to survive without a way to make extra cash.

[GratitudeGriot]

Accurate. my family pays +$17K a year on daycare and that's only because I get a federal employee discount. The true cost in our area is $24.9K

[mottkey]

3:30 Yeah, there is some light at the end of the tunnel—either recession in 2026 or civil tension in 2025. The US has the worst medical and social security among all developed countries. And here is the question: What am I paying my taxes for?