TAMPA, Fla. — If you're a single parent, this story may sting a bit.
New research from WalletHub finds single parents are getting hit a lot harder with childcare costs than couples. In some states, single parents are spending half of their median income or more to put their child in an early learning center.
WATCH full report by Heather Leigh
We know childcare is a necessity for working parents who want to stay working. And for single parents, it’s a non-negotiable to put food on the table.
“These high costs, they do put families in quite a predicament," said Chip Lupo, a writer and Analyst at Wallethub. "Particularly, the cost of everything else, childcare is no different than the other goods and services. Everything is going up.”
Lupo went over the research.
“Overall, married couples could spend a little over 13% of their income on childcare, and single parents can spend upwards of 50+," he said.
It depends on which state you’re in. For example, a single parent in Washington, D.C, will spend roughly half of their median annual income on childcare at a facility. It's a little less at a home daycare. But, couples in our Nation’s Capitol — they’ll pay just over 9.2% at a childcare facility.
Here in Florida, the difference is a little less brutal. Couples will spend nearly 10% of their annual income combined at a childcare facility, and a single parent will spend about 28.6%.
“A lot more companies are adjusting, as part of their compensation or benefits package, including childcare as part of that offer to make it a little bit more attractive to hiring and maintaining employees," Lupo said.
The state of Florida is trying to incentivize businesses to do that now — offering tax credits whether the business opens its own on-site childcare facility or helps their employees offset the cost at a childcare center in the community.
Applications for the Child Tax Credit Program opened on Oct. 1. And in March of this year, we told you that out of 22 applicants, three have been approved, which equals about $857,000 in credit allocations. Others were still being evaluated, but most of the businesses denied didn’t meet certain qualifications.
In the meantime, Lupo said parents, single or married, need to anticipate a worst-case scenario for childcare costs when creating their budget.
"A lot of people are still basing their budget on pre-COVID spending levels, which is crazy," he said. "You have to adjust; you need to stay on top of things, look at the value and the cost, and expect worst-case scenario. Expect the cost of childcare is going to go up exponentially every year. And if it doesn’t, that’s a good thing."
Lupo said the goal of gathering this research is, of course, to keep people informed on the reality of childcare costs — but it’s also to help state leaders reconsider policy. They can look at how other states are doing and decide if those policies could be implemented in their state to bring down the cost.
If you have a childcare story you would like to share with me, e-mail me at Heather.Leigh@wfts.com.
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