Child Care Costs Require $402,708 Annual Income for Two Children Under Federal Affordability Guidelines
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3mo ago· 13 min readenInsight
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Summary
The article reveals that child care costs have become unaffordable for most American families with two children. According to federal guidelines, child care is considered affordable when it accounts for no more than 7% of household income. With average annual costs for an infant and a 4-year-old reaching $28,190, a family would need to earn $402,708 annually to meet this benchmark. However, typical two-child households earn just $145,656 on average, falling far short of what affordability standards suggest, highlighting a significant gap between actual incomes and the income needed for affordable child care.
Key quotes
· 4 pulledWith average annual costs for care of an infant and a 4-year-old reaching $28,190, a family would need to earn $402,708 a year to stay within that benchmark.
However, typical two-child households earn just $145,656, falling far short of what affordability standards suggest.
Under federal guidelines, child care is considered affordable when it accounts for no more than 7% of household income.
Child care has long been one of the most significant expenses for families — and LendingTree research shows just how out of reach it has become.
Families don’t make enough on average to afford child care for two children, according to government benchmarks.
