Childcare Costs are on the Rise: Here’s what you can do about it
Inflation has reached record highs in recent months as prices for food, gas and other goods have increased faster than they have since the early 1980s.
Yet, with increased costs across the board, child care remains one of the biggest expenses working families face, with average costs exceeding $10,000 per year.
In fact, the average annual price of child care increased 5% from $9,687 in 2019 to $10,174 in 2020, according to the “Demanding Change” report. And in 2022, 58% of families expect their childcare costs to exceed $10,000.
The report also found that the average increase in the cost of child care is outpacing inflation by more than 3%, meaning that parents need to stretch their dollars further than ever before to even afford basic needs such as food, fuel, and…reliable childcare.
And in 2022, 58% of families expect to pay over $10,000 on childcare.
That figure represents more than 10% of the median income for a married couple, and more than 35% percent of the median income for a single parent, according to Fortune.To put that into context, the U.S. Department of Health and Human Services recommends that parents spend no more than 7% of their household income on child care.
As a result of this gap, often parents cannot afford to work. Let me repeat that. Parents cannot afford to go to work and earn an income. That’s right, going to work has now become a luxury that parents don’t have the means for.
If this seems counterintuitive and backwards… it’s because it is.
This growing gap between average household income and rising childcare costs has resulted in thousands of parents — particularly mothers — leaving the workforce, according to Child Care Aware.
Approximately 3.5 million mothers with school-aged children either lost jobs, took leaves of absence or left the labor market altogether since the pandemic erupted in spring 2021, according to the Census Bureau.
That has been compounded by the pandemic’s effects on the childcare industry, with nearly 16,000 childcare centers and licensed family childcare programs closing permanently between Dec. 2019 and March 2021.
As the world begins to get back to somewhat-normal, some companies are requiring employees to return back to offices and work traditional office hours, which leaves many families in a lurch due to the cost of covering full-time childcare.
And the stats continue to reflect that. As of February 2022, there's over 1.1 million fewer women aged 20 and over in the labor force than there were pre-pandemic.
So what is the solution?
Moms need more options. They need options that allow them to blend work and family. They need opportunities to financially contribute to their family, whether they choose to work inside or outside the home. They need more accessible and affordable childcare, and childcare assistance programs when required to return to the office. They need employers who offer flexible scheduling to allow for part-time vs full-time childcare. And they need to be compensated for the unpaid labor they often do inside the home.
Thankfully, we are now living in a new world, and new work opportunities have emerged since the pandemic. One new platform, June Care, was created to offer families access to childcare and income opportunities by Joining Up Neighbors Everywhere. The site connects families looking for childcare with parents nearby who can care for their kids, effectively tapping into the highly qualified workforce, (aka MOMS!) that is currently being underutilized, WHILE providing a platform that enables ALL families to get access to childcare.
June Care’s goal is to empower mothers to support one another in their most important work, whether that work is inside or outside the home.
By signing up as a June Care “host” parent, mothers can earn income while spending time with their own children, thus not having to choose between motherhood and career, and achieving the best of both worlds.
AND, working mothers now have access to a more flexible childcare solution that they can design to fit their life, whether they work full-time, part-time or anything in between, allowing them to save costs on childcare by having part-time options vs. having to pay for and commit to full-time at a traditional childcare center.
“Not only are the children who are being cared for in an environment hand-picked by their parents but it also helps support stay-at-home mothers who need to create some type of income.”
June Care allows moms set their own schedules and hourly rates, and can work as little or as often as they choose. The unique model allows moms to not only earn income, but also to save money they would otherwise pay for childcare while working a traditional job.
Hosting with June Care allows moms to save anywhere from $10,000 - $20,000 per year that would normally be spent on childcare, transportation and getting to and from work, which can help families offset the rising costs of groceries, gas, utilities and other goods. In addition, many host parents use the extra income to go towards kids sports and activities, dining out, date nights or self-care services.
“I would describe June Care as stay at home parents and working parents, working together. No one knows a child’s routine like another parent or caregiver, and it is a great way for stay at home parents to earn extra income while the working parent can enjoy the peace of mind that their child is in safe environment with other children. It’s a win-win! People always say it takes a village to raise children, and some of us just don’t always have that village available. June Care definitely helped me find my person when I needed child care. ”
If you are interested in joining the June Care mission of #momssupportingmoms and earning income as a June Care host, you can sign up for free at JuneCare.co and browse jobs in your area.
