Daycare Now Costs More Than College
Hats off to all the parents doing the best they can!
In most states, the cost of childcare is now more expensive than a college education. Care.com and the think tank New America issued a report showing that the average cost for daycare in the U.S. is $9,859 annually year as compared to $9,410 for a year of in-state college tuition. Yikes!
A family earning the media household income would spend 18 percent of its income on childcare for one kid, according to the report. For parents who are making less than the median income, the stats are even more grim. A parent earning minimum wage, for example, would spend 64 percent of her or his income to send one child to daycare.
When you consider the numbers, it’s easy to see why many parents—usually moms—struggle with the decision of whether to return to work after having a baby.
While it’s hard to make the numbers work when you’re forking over a significant chunk of your salary for childcare, there is a real cost to being a stay-at-home mom. The average woman in the U.S. who takes a five-year break from her career beginning at age 26 will lose out on a whopping $467,000 in income, wage growth, and retirement assets and benefits over her lifetime, according to Forbes. There’s no easy answer when it comes to juggling children and career—but it’s certainly worth considering the long-term impact on your earning potential when deciding what’s right for your family.
[h/t: Scary Mommy]
Photo by COD Newsroom