Families Who Pay for Child Care Spend an Average of 17.8% of Their Income On It — Here’s Where It Costs Them the Most
It’s no secret that child care is expensive. That’s true for caregivers (think liability insurance and staffing ratio regulations) and families struggling with inflation and looking to cut back. Sometimes, that means seeking free or cheap child care from a grandparent or sibling.
LendingTree researchers examined child care spending trends across the U.S. and each state to provide a glimpse of the landscape. Depending on where you live, child care costs could range from 12% to 28% of your income.
Here’s what else researchers found.
On this page
- Key findings
- U.S. families who pay for child care spend 17.8% of their income, on average, on it
- Nevada families spend the highest percentage of their income on child care
- New Hampshire and South Dakota families spend the lowest percentage of their income on child care
- Full rankings
- Only 50% of U.S. families who use child care report paying for it
- Methodology
Key findings
- U.S. families who pay for child care spend 17.8% of their income, on average, on it. These families, who earn an average of $1,650 weekly, spend $293 on child care.
- Nevada families spend the highest percentage of their income on child care. Nevada families who pay for child care spend 27.8% of their income, on average, on it. Families in the state who pay for child care spend an average of $419 a week — the highest in the U.S. — though their average weekly income ($1,510) is $140 below the U.S. average. Nevada is followed by Montana (26.2%) and New Mexico (22.0%).
- New Hampshire and South Dakota families spend the lowest percentage of their income on child care. Families in both states who pay for child care spend 11.6% of their income, on average, on it. New Hampshire families who pay for child care spend an average of $240 a week — the 12th-lowest in the U.S. — and have the fifth-highest weekly income at $2,081. South Dakota families spend an average of $185 a week — the second-lowest in the U.S. Virginia (12.9%) joins the bottom three.
- Only 50% of U.S. families who use child care report paying for it. The most common child care arrangement (22.1%) relies on family, such as a grandparent or sibling. Meanwhile, 8.6% of families say they put their child into a child care or day care center.
U.S. families who pay for child care spend 17.8% of their income, on average, on it
To calculate these findings, LendingTree researchers analyzed two U.S. Census Bureau surveys:
- The U.S. Household Pulse Survey to find the average amount families spend weekly on child care (among those who report using it in the past seven days)
- The American Community Survey to calculate the percentages of income that go toward health care (based on the Household Pulse Survey’s spending data)
Using this data, LendingTree researchers found that families who pay for child care spend 17.8% of their income on it. That amounts to a weekly spend of $293 on child care costs.
Whether you’re talking about labor, insurance, real estate, regulatory issues or a host of other factors, everything adds up to make child care an expensive business to run, says Matt Schulz, LendingTree chief credit analyst.
“Those costs have to get passed along to the consumer,” Schulz says. “The demand for quality child care is enormous and always will be. That allows top child care facilities to charge higher rates for their services, knowing that people will often be willing to pay more for the quality they provide.”
Nevada families spend the highest percentage of their income on child care
Nevada families spend the highest percentage of their income (27.8%) on child care across the U.S. Families in the state who pay for child care spend an average of $419 a week — also the highest in the U.S. And their average weekly income ($1,510) is $140 below the U.S. average.
This is unsurprising when you look at the availability of child care in the state. According to the Center for American Progress, a massive 72% of people in Nevada live in a child care desert as of 2018 — the latest available data. That’s the second-largest child care desert in the U.S. behind Utah (77%). The less availability, the more a child care facility can charge.
(For context, the Center for American Progress defines a child desert as “any census tract with more than 50 children under age 5 that contains either no child care providers or so few options that there are more than three times as many children as licensed child care slots.”)
| Rank | State | Average amount spent weekly on child care | Average weekly family income | % of family income spent on child care |
|---|---|---|---|---|
| 1 | Nevada | $419 | $1,510 | 27.8% |
| 2 | Montana | $402 | $1,538 | 26.2% |
| 3 | New Mexico | $287 | $1,304 | 22.0% |
Source: LendingTree analysis of U.S. Household Pulse Survey and American Community Survey data.
Nevada is followed by Montana, where families spend 26.2% of their income, on average, on child care, and New Mexico, where the figure is 22.0%. Those states also have sizable child care deserts — 60% in Montana and 53% in New Mexico. (For comparison, the U.S. average is 51%).
It’s also worth noting that although New Mexico residents pay significantly less weekly on child care than Nevada and Montana residents, they also earn about $200 less weekly.
New Hampshire and South Dakota families spend the lowest percentage of their income on child care
At the other end of the spectrum, New Hampshire and South Dakota tie for being the states where families spend the smallest percentage of their income on child care costs (11.6%).
The weekly spending amounts vary due to income differences in these states. For example, New Hampshire residents spend an average of $240 weekly on child care and earn $2,081 weekly. That puts their average child care spending as the 12th-lowest in the U.S. And their earnings come out as the fifth-highest in the country — a winning combination for families in the state. Meanwhile, South Dakota families spend just $185 a week on those costs (the second-lowest amount in the U.S.), but they also earn $1,588 a week, significantly less than their New Hampshire counterparts.
Still, these states boast more child care availability, with 46% of people in a child care desert in New Hampshire and 43% in South Dakota (Reminder, both are below the U.S. average of 51%, according to the Center for American Progress.) That could help explain why families in these states fare better.
| Rank | State | Average amount spent weekly on child care | Average weekly family income | % of family income spent on child care |
|---|---|---|---|---|
| 1 | New Hampshire | $240 | $2,081 | 11.6% |
| 1 | South Dakota | $185 | $1,588 | 11.6% |
| 3 | Virginia | $249 | $1,938 | 12.9% |
Source: LendingTree analysis of U.S. Household Pulse Survey and American Community Survey data.
Virginia, where families spend 12.9% of their income on child care, rounds out the bottom three. For reference, the average amount Virginians spend on child care ranks 37th in the U.S. The state also has only 47% of people living in a child care desert, which can help lower costs.
Full rankings
| Rank | State | Average amount spent weekly on child care | Average weekly family income | % of family income spent on child care |
|---|---|---|---|---|
| 1 | Nevada | $419 | $1,510 | 27.8% |
| 2 | Montana | $402 | $1,538 | 26.2% |
| 3 | New Mexico | $287 | $1,304 | 22.0% |
| 4 | Kansas | $349 | $1,589 | 21.9% |
| 5 | Hawaii | $404 | $1,940 | 20.8% |
| 6 | Delaware | $343 | $1,676 | 20.5% |
| 7 | Texas | $315 | $1,544 | 20.4% |
| 8 | Arizona | $318 | $1,570 | 20.3% |
| 9 | South Carolina | $281 | $1,421 | 19.8% |
| 10 | Maine | $313 | $1,593 | 19.6% |
| 11 | New Jersey | $404 | $2,117 | 19.1% |
| 12 | North Dakota | $326 | $1,721 | 19.0% |
| 13 | Florida | $277 | $1,465 | 18.9% |
| 14 | Illinois | $328 | $1,747 | 18.8% |
| 14 | Massachusetts | $411 | $2,189 | 18.8% |
| 16 | New York | $330 | $1,778 | 18.6% |
| 17 | Washington | $364 | $1,965 | 18.5% |
| 18 | Tennessee | $261 | $1,437 | 18.2% |
| 19 | Minnesota | $345 | $1,915 | 18.0% |
| 20 | Idaho | $275 | $1,538 | 17.9% |
| 21 | Oregon | $297 | $1,694 | 17.5% |
| 22 | North Carolina | $260 | $1,492 | 17.4% |
| 22 | West Virginia | $223 | $1,282 | 17.4% |
| 22 | Georgia | $270 | $1,553 | 17.4% |
| 25 | Alaska | $318 | $1,834 | 17.3% |
| 26 | California | $319 | $1,873 | 17.0% |
| 27 | Arkansas | $215 | $1,272 | 16.9% |
| 27 | Maryland | $360 | $2,134 | 16.9% |
| 29 | Pennsylvania | $278 | $1,683 | 16.5% |
| 30 | Ohio | $251 | $1,553 | 16.2% |
| 31 | Michigan | $250 | $1,549 | 16.1% |
| 32 | Connecticut | $328 | $2,050 | 16.0% |
| 33 | Wisconsin | $263 | $1,650 | 15.9% |
| 33 | Utah | $282 | $1,773 | 15.9% |
| 35 | Indiana | $241 | $1,524 | 15.8% |
| 36 | Rhode Island | $293 | $1,871 | 15.7% |
| 37 | Louisiana | $201 | $1,289 | 15.6% |
| 37 | Wyoming | $252 | $1,611 | 15.6% |
| 39 | Kentucky | $208 | $1,347 | 15.4% |
| 40 | Colorado | $294 | $1,963 | 15.0% |
| 41 | Alabama | $200 | $1,366 | 14.6% |
| 42 | Mississippi | $178 | $1,231 | 14.5% |
| 43 | Missouri | $219 | $1,521 | 14.4% |
| 44 | Oklahoma | $188 | $1,346 | 14.0% |
| 45 | District of Columbia | $365 | $2,619 | 13.9% |
| 45 | Vermont | $242 | $1,741 | 13.9% |
| 47 | Iowa | $219 | $1,633 | 13.4% |
| 48 | Nebraska | $223 | $1,702 | 13.1% |
| 49 | Virginia | $249 | $1,938 | 12.9% |
| 50 | South Dakota | $185 | $1,588 | 11.6% |
| 50 | New Hampshire | $240 | $2,081 | 11.6% |
Source: LendingTree analysis of U.S. Household Pulse Survey and American Community Survey data.
Only 50% of U.S. families who use child care report paying for it
Only 50% of U.S. families who use child care report paying for it. And that jumps to 60% among those ages 25 to 39.
It’s also significantly more likely to be the case (with figures ranging from 69% to 84%) for those on active duty in the military, serving in the Reserves or National Guard, or with a spouse serving on active duty.
At the state level, it’s worth noting that New Mexico — which boasts the third-highest percentage of income going toward child care in the country — has the lowest overall rate of residents who report paying for child care (26%). That means far fewer families in the state may be burdened by child care costs.
| Rank | State | % who use child care and pay for it |
|---|---|---|
| 1 | District of Columbia | 78% |
| 2 | Connecticut | 73% |
| 3 | South Dakota | 69% |
| 4 | Delaware | 67% |
| 5 | North Carolina | 67% |
| 6 | Nebraska | 65% |
| 7 | Maine | 64% |
| 8 | South Carolina | 63% |
| 9 | Mississippi | 63% |
| 10 | New Hampshire | 62% |
| 11 | Missouri | 61% |
| 12 | Maryland | 59% |
| 13 | New York | 59% |
| 14 | Virginia | 58% |
| 15 | Massachusetts | 57% |
| 16 | Michigan | 56% |
| 17 | Oregon | 55% |
| 18 | Colorado | 55% |
| 19 | Wisconsin | 55% |
| 20 | Iowa | 55% |
| 21 | Minnesota | 54% |
| 22 | North Dakota | 54% |
| 23 | Idaho | 54% |
| 24 | Alabama | 53% |
| 25 | Wyoming | 52% |
| 26 | Vermont | 52% |
| 27 | Georgia | 51% |
| 28 | Montana | 49% |
| 29 | Washington | 49% |
| 30 | Kansas | 49% |
| 31 | Tennessee | 49% |
| 32 | Hawaii | 48% |
| 33 | Rhode Island | 48% |
| 34 | Indiana | 48% |
| 35 | Florida | 47% |
| 36 | Kentucky | 47% |
| 37 | Illinois | 46% |
| 38 | Alaska | 46% |
| 39 | Pennsylvania | 46% |
| 40 | California | 45% |
| 41 | Texas | 44% |
| 42 | Ohio | 44% |
| 43 | Nevada | 43% |
| 44 | New Jersey | 43% |
| 45 | Arizona | 42% |
| 46 | Oklahoma | 42% |
| 47 | Arkansas | 40% |
| 48 | Utah | 39% |
| 49 | Louisiana | 39% |
| 50 | West Virginia | 29% |
| 51 | New Mexico | 26% |
Source: LendingTree analysis of U.S. Household Pulse Survey data.
According to the U.S. Household Pulse Survey data, the most common child care arrangement (22.1%) relies on family, such as a grandparent or sibling. Meanwhile, just 8.6% of families say they put their child into a child care or day care center. (Of importance, respondents could choose more than one arrangement.)
Of course, getting a family discount, as opposed to vying for a space at a more limited but professionally staffed center, is typically more cost-effective when raising a child.
Again, though, access to child care centers in the U.S. leaves much to be desired. And 51% of Americans live in child care deserts, limiting their options even when the higher costs of these arrangements aren’t an issue. The veto of the Comprehensive Child Development Act in 1971 that would have created universal child care — combined with the lack of support from private companies (day care centers as part of a standard benefits package, for example) — leaves many parents with fewer options, even resulting in them taking on debt or leaving the workforce altogether.
“Every day in this country, parents are forced to choose between having a career and taking care of their children because of how obscenely expensive child care can be, and that’s not changing anytime soon,” Schulz says.
Methodology
LendingTree researchers analyzed U.S. Census Bureau Household Pulse Survey and American Community Survey data to estimate how much income families who pay for child care spend, on average, on it across the U.S. and in each state. Researchers also ranked states according to their average weekly child care costs.
Additionally, we estimated the percentage of families who use child care and pay for it and the most common child care arrangements.
The Household Pulse Survey data covers Nov. 2 to Nov. 14, 2022 — the latest available at the time of research. The American Community Survey income data is from 2021.
This study’s research was led by Derek Miller.