Care.com Survey Finds Rising Cost of Child Care Is Causing Families to Save Less, Work Less, Spend Less, And Have Fewer Children

According to the Care.com 2019 Cost of Care survey, American families are cutting back substantially on other expenses in order to be able to afford child care costs, which are taking an increasing share of household budgets.

The sixth annual Cost of Care survey from Care.com (NYSE: CRCM), the world’s largest online destination for finding and managing family care, found nearly half of families spend 15% or more of their annual household income on child care. For the second consecutive year, the survey found more than 70% of families reported paying 10% or more of their income on care. (The U.S. Department of Health and Human Services’ (DHHS) definition of affordable care is 7%.) And two-thirds of parents say they’re spending more on child care than they did last year.

The survey also asked parents how they’re responding to the rising cost of child care. In addition to financial strain, child care costs have caused relationship tension for 36% of those surveyed; 39% said care costs have impacted family planning; and 39% said they waited longer to have children or had fewer children than they would have liked because of the high cost of care.

The results demonstrate the central role care plays in our economy. The good news is that more families are budgeting for child care: 84%, up from 68% last year and from 54% five years ago. But that positive trend masks a deepening crisis: While 70% of families say they’re able to afford their current care arrangement, the details of how they make it work tell a more complicated story. To cope with the high cost of care, American families told Care.com they are sacrificing elsewhere by spending less, saving less, paying off less debt, and even taking on additional debt.

This new data helps illuminate why child care is taking center stage in American politics and policy. Last year, Care.com Cost of Care data was cited on the floor of the House of Representatives, and lawmakers from both parties have recently unveiled ambitious new proposals to help fix America’s broken child care system. Measuring the impact of child care costs on families, businesses, and the economy is a key first step to solving America’s care crisis.

“Care.com’s data clearly shows a fact that’s often overlooked: Care is a driving force in our economy. The cost of child care has tripled since 1990, rising far faster than inflation, and becoming the biggest household budget item for many families – and families just can’t keep up,” says Sheila Lirio Marcelo, Founder, Chairwoman and CEO of Care.com. “Parents are under more pressure than ever to find reliable, affordable child care, but our current system is literally pushing parents out of the workforce and families out of the Middle Class. From all around the country we’ve heard stories of families struggling to find quality care they can afford. We simply can’t afford to continue to dismiss care as a ‘soft’ issue or a ‘women’s’ issue. As a society we need innovative, scalable solutions to our care crisis.”