Do you feel like you’re paying an exorbitant amount for childcare? That’s because you probably are.
According to a study released this week by Child Care Aware, parents in Michigan pay among the highest percentage of their income for childcare at centers, including in-home daycares. The study did not look at care from nannies or family members. It is based on data from 2012.
The federal government considers childcare affordable if it costs up to 10 percent of a family’s income. Yet the study found that the cost exceeded that percent in 38 states and the District of Columbia. In all states, the cost was more than 10 percent of income for single parents.
In Michigan, care for an infant costs on average $10,000 a year, the study says. That’s 13 percent of the median income for a married couple and 48 percent of the median income for single mothers, placing Michigan on the list as the 12th least affordable state for childcare.
Overall, the cost of childcare is rising year over year, the report says.
How do you handle the high cost of childcare? Do you sacrifice on other expenses or has one parent decided to stay home because of the financial burden?