{"id":105411,"date":"2026-10-21T21:28:27","date_gmt":"2026-10-21T21:28:27","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/childcare-costs-are-rising-faster-than-rent-straining-u-s-family-budgets\/"},"modified":"2026-10-21T21:28:27","modified_gmt":"2026-10-21T21:28:27","slug":"childcare-costs-are-rising-faster-than-rent-straining-u-s-family-budgets","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/childcare-costs-are-rising-faster-than-rent-straining-u-s-family-budgets\/","title":{"rendered":"Childcare costs are rising faster than rent, straining U.S. family budgets"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div id=\"\">\n<p>The rising cost of childcare in the U.S. is vying with food prices and healthcare expenses in straining household budgets.<\/p>\n<p>Nearly 8% of families are spending more than $2,000 per month on childcare services, including daycare, nanny services and other programs. That&#8217;s more than double the share of households that spent that much just three years ago, according to new\u00a0<a href=\"https:\/\/institute.bankofamerica.com\/content\/dam\/economic-insights\/child-care-costs.pdf\" target=\"_blank\" rel=\"noopener\">research<\/a>\u00a0from the Bank of America Institute.\u00a0<\/p>\n<p>In September, the cost of daycare and school-related fees rose faster than other essential expenses, such as rent and medical care, compared to the same period a year ago, according to federal labor data.\u00a0<\/p>\n<p>Families nationwide spent an average of 8% of their monthly incomes on childcare services in September, BofA found. Under federal guidelines, childcare is considered affordable when it consumes no more than 7% of household income.\u00a0<\/p>\n<p>Assuming a family spends $24,000 annually on childcare, it would need to earn roughly $343,000 to remain below the 7% threshold. In 2025, median household income was $87,460,\u00a0<a href=\"https:\/\/www.census.gov\/library\/publications\/2026\/demo\/p60-289.html\" target=\"_blank\" rel=\"noopener\">according<\/a>\u00a0to Census Bureau data.\u00a0<\/p>\n<p>Lower- and middle-income families spend nearly 9% of their annual incomes on childcare payments, while higher-income households spend 7.3%, according to BofA.\u00a0<\/p>\n<p>Along with facing rising childcare costs, workers have also seen slowing wage growth, heightening the financial pressure on many families, Economic Policy Institute economist Elise Gould told CBS News.<\/p>\n<p>Separate\u00a0<a href=\"https:\/\/www.aarp.org\/caregiving\/financial-legal\/grandparents-report-2026\/\" target=\"_blank\" rel=\"noopener\">research<\/a>\u00a0from AARP shows that families are turning to grandparents, who provide $172 billion per year in direct financial assistance.\u00a0<\/p>\n<h2>Where are childcare costs growing fastest?\u00a0<\/h2>\n<p>In some parts of the U.S., childcare fees are rising even faster, according to BofA. In September, median childcare costs rose fastest in Nashville, Tennessee, followed by Jacksonville, Florida, and Phoenix, Arizona, compared to the same period a year ago, according to BofA&#8217;s analysis.<\/p>\n<p>&#8220;There&#8217;s been an increase in domestic migration to these areas,&#8221; BofA Institute economist Taylor Bowley told CBS News, noting that an increase in demand for childcare services is putting pressure on prices.\u00a0<\/p>\n<p>A shortage of childcare workers also appears to be driving up childcare expenses. Employment in the sector fell 0.7% in September compared to one year earlier, making it harder for providers to deliver such services.<\/p>\n<p>&#8220;You see job growth falling and price pressures creeping in, leading to a bit of an availability problem,&#8221; BofA Institute senior economist David Tinsley told CBS News.\u00a0<\/p>\n<p>A lack of affordable childcare disproportionately affects women&#8217;s employment opportunities, according to the researchers. Women are more likely than men to take on childcare responsibilities, according to data from the American Time Use Survey.<\/p>\n<p>&#8220;Beyond childcare being a household expense, it&#8217;s a form of economic enablement,&#8221; Bowley said.\u00a0<\/p>\n<section class=\"content__body--footer\">\n<p class=\"content__meta--editors\">\n      Edited by<\/p>\n<p>                                  <a href=\"https:\/\/www.cbsnews.com\/team\/alain-sherter\/\" class=\"byline__author__link\" data-invalid-url-rewritten-http=\"\">Alain  Sherter<\/a>\n                      <\/p>\n<\/section>\n<p>  <!-- data-recirc-source=\"queryly\" --><\/p>\n<aside class=\"component list recirculation component--type-recirculation  \">\n<p><h3 class=\"component__title\">More from CBS News<\/h3>\n<\/p>\n<div class=\"component__item-recirc-block\">\n<p><h3 class=\"component__title\">Go deeper with The Free Press<\/h3>\n<\/p><\/div>\n<\/aside>\n<section class=\"content__body--footer\">\n      <!-- tags --><br \/>\n 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budgets.<\/p>\n","protected":false},"author":1,"featured_media":105412,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33],"tags":[],"class_list":["post-105411","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-us"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Childcare costs are rising faster than rent, straining U.S. family budgets - World News<\/title>\n<meta name=\"description\" content=\"A growing share of American families are having to shell out more than $2,000 a month for childcare services, new data shows.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/site.itshrt.com\/worldnews\/childcare-costs-are-rising-faster-than-rent-straining-u-s-family-budgets\/\" 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