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Child Care


October 5, 2023

Navigating the High Cost of Child Care in the United States

By Bumo

Find vetted, affordable care near you through Bumo!

A father and two children sitting at a table discussing the cost of child care.


The Rising Cost of Child Care

Parenthood is a remarkable journey filled with love, joy, and a profound sense of responsibility. As parents, we strive to provide the best for our children, ensuring their well-being, education, and overall development. However, one significant challenge that many American parents face today is the soaring cost of child care. In this blog post, we’ll explore the current landscape of child care costs in the United States, the factors contributing to these expenses, and strategies to manage and plan for this significant financial aspect of parenting.

The Rising Cost of Child Care

The cost of child care in the United States has been on the rise for several years. According to a report by Child Care Aware of America, the average annual cost of center-based infant care in 2020 was approximately $14,000, which is more than the average cost of in-state college tuition. In some states, this cost can exceed $20,000 per year. Challenges around child care and child care costs have been well documented (read: This is How Technology Can Solve the Childcare Crisis, How the Rising Cost of Child Care Hurts Parents’ Job Stability, Parents pushed to their limits over rising child care costs, limited access to care

There are several factors contributing to these high child care costs

1. Labor Costs: A significant portion of child care expenses goes toward staffing, as providers need to hire qualified caregivers to ensure the safety and development of children.

2. Regulation and Licensing: Child care facilities must adhere to strict state regulations and licensing requirements, which can increase overhead costs.

3. Real Estate: Rent or mortgage payments for child care centers can be substantial, especially in urban areas where space is at a premium.

4. Supplies and Materials: Child care centers require a wide range of supplies, including educational materials, toys, and safety equipment, which add to the overall cost.

5. Demand vs. Supply: High demand for child care services often drives up prices, especially in areas with limited options for parents.

Strategies to Manage Child Care Costs

1. Budgeting: Create a detailed budget that includes child care costs as a significant expense. This will help you plan your finances accordingly and make informed decisions.

2. Government Assistance: Investigate government programs and subsidies that may be available to help lower-income families cover child care expenses. Programs like Head Start and the Child Care and Development Block Grant (CCDBG) offer assistance to eligible families.

3. Employer Benefits: Some employers offer benefits such as flexible spending accounts (FSAs) or dependent care assistance programs (DCAPs) to help employees cover child care costs. Check with your HR department to see if these options are available.

4. Tax Credits: Explore tax credits like the Child and Dependent Care Credit, which can provide substantial relief at tax time for qualifying child care expenses.

5. Family and Friends: Consider informal child care arrangements with trusted family members or friends, which can be more cost-effective.

6. Child Care Subsidy Programs: Some states offer child care subsidy programs for families with low to moderate incomes. Research the availability and eligibility criteria in your state.

7. Research Options: Compare different child care providers and options in your area to find the best fit for your family’s needs and budget.

8. On-Demand Child Care: Companies, like Bumo, are revolutionizing the process of finding reliable, affordable, and accessible child care on-demand which provide families with more options and flexibilities without long term binding commitments.Read our article “5 Reasons You Need On-Demand Child Care: A Parent’s Guide


The cost of child care in the United States is a significant financial burden for many parents. However, by understanding the factors contributing to these expenses and exploring available resources and strategies, parents can better navigate this challenge. It’s crucial to plan, budget, and explore all possible avenues to ensure that your child receives quality care without compromising your family’s financial stability. Parenthood is a journey worth every sacrifice, but with careful planning, you can find a balance that allows you to provide the best for your child while managing the cost of child care.

Find vetted, affordable care near you through  Bumo!

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