Table of Content
Use the information below to compare nanny and babysitting rates in your area, and align on a reasonable price per hour for your sitter. To rank each state’s affordability of child care, we compared the average annual cost of infant care to the median household income in the past 12 months (from the U.S Census Bureau). Infant care can be seen as a “max” expense since older children’s child care is the same price or less in every state. Below are the 2021 national averages of weekly child care costs for each type of care, compared to costs in 2019.
As the cost of child care continues to rise, consider these steps to make the expense more affordable. Survey respondents are also adjusting their family plans to stay on track financially. 35% say they’re less likely to have more children with 43% listing the rising cost of child care as a major reason why. Procare provides comprehensive child care management software with the power to help you take control at every point of your business.
Breaking This All Down for Your Family
With that said, a highly skilled child care provider is absolutely worth the extra cost. Educated child care professionals have spent years studying the cognitive development of young minds and how to maximize their learning while creating a structured and caring environment. This scientific sample of 3,003 US adults who are all parents paying for professional child care was surveyed between March 24, 2022, and March 30, 2022. All respondents are parents of children 14 years or younger and currently pay for professional child care, confirmed by both consumer-matched data and self-confirmation.
Review the table below and find your state to see how much you should expect to pay annually for child care based on where you live. No one said parenting would be easy, but having more affordable child care could make a huge difference. And while the pandemic continues, working families are feeling extra stress. Parents know that child care isn’t cheap, but they might not realize how much those costs differ across the United States—or how much of their income they can expect to spend. Whether you’re hoping to find backup child or adult care or utilize paid family leave, it can pay to investigate whether or not your employer offers family care benefits.
Other Factors to Consider When Setting Your Rates for Child Care
The business owner’s salary should also be included in this calculation to give a more accurate representation of total labor costs. The number of staff will largely depend on state regulation, as many states have set ratios of caregivers to children. For an in-home daycare service, one should charge between $700 and $900 per month for each child. These numbers are consistent with the national averages of in-home child care costs.
In addition to the safety and legal aspects of starting a daycare, there are also financial considerations that should be planned for. Initial start-up costs can run high, depending on the readiness of one’s home. Business owners should plan for unexpected expenses to make their home compliant with state regulations, as well as setting aside additional upfront costs such as marketing materials. These expenses, along with recurring costs, contribute to what one should charge for in-home daycare.
National average weekly child care rates
Next, we’ll look individually at each of these cost factors in more detail. Many low-income families are being slowly priced out of childcare by families who can pay more without giving up huge chunks of their income. By paying your caregiver on the books, you can take advantage of tax breaks and credits. In fact, 43% of parents say it’s much harder to find child care over the past year. San Francisco tops the list with an average rate of $21.17 an hour for one child and $23.56/hr for two children. Try another search query or take our salary survey to get a personalized salary report for your job title.
As a parent, you’ll benefit from features like automated billing, diverse payment options, and streamlined communication with your child’s daycare center. If you’re planning to pay your child care costs each month, you’ll have to calculate your rate in a different way. If you choose to have the daycare center provide meals for your child, you should expect to pay a little bit more.
Let’s imagine you live in Rhode Island, so the average annual cost for infant care is $9,900. Looking at the annual in-home daycare cost for your state can feel a little overwhelming at first, so it’s important to break it down into monthly or weekly budget items that are easier to manage. Child care is a hands-on service, and kids need the right amount of individualized attention to reach their full potential. The U.S. Office of Personnel Management publishes recommendations for staffing ratios based on the age of children and the size of the group. The success of an in-home daycare is dependent on a wide variety of factors and, while parents certainly consider cost, they tend to prioritize the quality of care.
Keep in mind, infant care is generally more expensive than care for older kids. For example, national average daycare prices for 4year-olds are a bit cheaper at $175 per week or 13.9% of the median income. Using data from the Economic Policy Institute and the US Census Bureau, we dug into the average cost of child care and compared it to the average income in each state. We also surveyed parents, asking them about child care and how the pandemic has affected them. Depending on where families live, the cost of hiring a nanny or paying for a day care can well exceed the national average. For example, in the District of Columbia, the cost of a nanny ($855 a week) is 23% above the national average, and the cost of day care ($419 a week) is 85% above the national average.
In-home daycare facilities that face higher costs, such as high renovation expenses, high utility bills, or high labor costs may also decide to charge more. Doing this ensures that the business will keep up with expenses while also staying profitable. Additionally, in-home daycare centers may face higher licensing fees if their business is certified to care for a larger number of children, for example. Thus, licensing and accreditation status also impacts what owners charge for their services. A study showed that 66% of parents are willing to pay more for child care services if the staff received safety training, such as CPR and first aid certifications. As a result of the differences between daycare facilities, there is a wide range of rates charged to clients.
Based on the 2022 Cost of Care Survey, child care is not in the affordable range for most families. Of parents surveyed, 72% say they are spending 10% or more of their household income on child care, with a majority (51%) spending more than 20% or more. Department of Health and Human Services , child care is considered affordable when it costs families no more than 7% of their household income. Facilities that use Procare spend less time on administrative tasks and more time on providing care and education that drive better outcomes for your child.
Planning considerations for child care staffing have changed due to the COVID-19 pandemic. Centers are advised to recruit additional staff that can fill in if existing members fall ill or must remain at home to care for ill family members. While staffing ratios have not changed, the need to implement social distancing strategies as directed by the CDC could mean fewer space for children in centers across the country. Most child care providers determine their rates based on their own experience and the unique values they bring to the table.
When factoring in both child care centers and family care centers, the average increase was nearly $50 per week. This increase shows how quickly and dramatically the prices of daycare can fluctuate. While there is not a specific clear reason for the relatively rapid increase, a significant portion of the revenue goes to complying with regulatory standards. Perhaps the most impactful of these standards is the staff to child ratio, which requires a high number of staff on duty, even for a small number of children. In order to understand the rates daycares charge, it is important to distinguish between the different types of daycare facilities. In-home daycare centers provide child care services within the residence of a professional caregiver.
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