"Federal guidelines say that childcare is affordable if it consumes no more than 7% of household income. Citing data from Child Care Aware of America, LendingTree found that the average annual cost of care for an infant and a 4-year-old is $28,190 nationwide. That would require household income of $402,708 a year to meet the 7% benchmark. But the average two-child household earns an average of $145,656, meaning the typical family would need a 176.5% pay hike to reach the affordability threshold."
"Looking at individual states, the affordability picture gets even worse. In 20 states, families need at least triple the average income for households with two kids to easily affordable childcare. They include Hawaii, where families need nearly 270% more, followed by Nebraska (263.0%) and Montana (257.8%). By contrast, South Dakota has the most affordable childcare costs at $16,702. But even then, families would need to earn $238,600, or 95.4% more than the average income in that state."
Average annual childcare cost for an infant and a 4-year-old is $28,190, which requires a household income of $402,708 to keep childcare at 7% of income. The typical two-child household income is $145,656, creating a 176.5% gap between current earnings and the affordability threshold. In 20 states families need at least triple the average income for affordable childcare, with the largest gaps in Hawaii, Nebraska, and Montana. The most affordable state, South Dakota, still requires families to earn $238,600, about 95.4% more than the average there. Racial disparities show American Indian and Black families face the largest income gaps.
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