Much has been reported and discussed about the high cost of a college education in America. However, the yearly cost of another expense parents are responsible for earlier in a child’s life is even higher.
According to a recent study by New America, a non-partisan Washington D.C.-based think tank, the annual cost of day care has surpassed the annual cost of the average college tuition. A report summarizing this New America study was published recently.
On Thursday (September 29th), CNBC.com released an article online , which gave details about New America’s report on this issue. “Today, there is no one “typical” American family. And in a majority of families with children under 18, all parents work for pay outside the home,” wrote the authors of the New America report.
“That means, on any given day, about 12 million children under the age of five will need a safe place to go and someone loving to care for them,” the report went on to read.
This New America study showed that the average cost of full-time day care is around $9,589 a year, whereas the average cost of college today runs around $9,410 a year. A household bringing in $53,000 annually would have to contribute roughly 20 percent of its income toward day care for each child in the home under the age of five.
Child care for parents who need it is also not readily available in some U.S. states.
“In South Dakota, all parents work in 82 percent of families with children under 18, the highest share of working families in the country. Yet the state has among the lowest availability of care,” the authors of the New America study also wrote.
“That suggests that working families are relying primarily on informal or ‘gray market’ care. Utah has the lowest share of such working families, but still has a majority, 63 percent, of all parents working,” they added.
Read the full report on this New America study by clicking the highlighted link to the source below.