Average Child Care Costs in America and How to Save Money

Child Care Costs in America

Inflation has led to rising child care expenses for American families.

Key Highlights:

• Nearly 50% of parents spend over $1,500/month on child care.
• 24% of household income goes towards child care.
• Over 1/3 of families dip into savings to cover child care costs.

The end of government support exacerbates the financial burden for families.

How to Save on Child Care Costs

1. Open a dependent care FSA: Save on taxes by allocating funds for child care expenses.
2. Seek need-based assistance: State programs offer vouchers and subsidies.
3. Claim the Child and Dependent Care tax credit: Lower your tax bill based on qualifying expenses.
4. Consider alternative working options: Some families find it more cost-effective for a parent to stay at home.

With child care costs showing no signs of decreasing, it's crucial for families to explore available assistance and savings options.