Many individuals and families have certain lifestyle budgets they accommodate for when determining how much home they can afford. But often times, childcare costs aren’t considered, especially for those who lock down a mortgage before they decide to have kids.

  • Childcare costs in the U.S. can be extremely high – ranging from 20 to 45 percent of median income for two kids in full-time care, Credio says.
  • To put one infant in a full-time New York child care center costs $14,144, comprising 26.04 percent of the median household income of $54,310 per year,
  • For a two-child household with one infant and one four-year-old, parents in New York spend $25,844, or 47.59 percent of the median household income.

Many individuals and families have certain lifestyle budgets they accommodate for when determining how much home they can afford. But often times, childcare costs aren’t considered, especially for those who lock down a mortgage before they decide to have kids.

Childcare costs in the U.S. can be extremely high – ranging from 20 to 45 percent of median income for two kids in full-time care, Credio says.

In New York, child care costs are the highest in the nation. To put one infant in a full-time child care center costs $14,144, comprising 26.04 percent of the median household income of $54,310 per year, according to the report.

Data is curated by credio.com
For a two-child household with one infant and one four-year-old, parents in New York spend $25,844, or 47.59 percent of the median household income.

In a 2015 report by ChildCare Aware of America, an advocacy group that promotes equal access to quality childcare, 11 million children under 5 years old are in some form of childcare for 36 hours per week, on average, in the U.S. While this figure includes parents who use family members or in-home babysitters, 35 percent of children are looked after at child care centers, preschools and Head Start programs, according to the data.

The costs of childcare typically skyrocket when babysitting goes from infrequently to full-time, which is what the figures from the Credio report measure.

Overall, depending on where you live, the percentage of income versus child care expenses range from 20 percent to 45 percent. The top 10 states — New York being the priciest in terms of full-time child care relative to median income — vary in terms of geographic region.

Minnesota is fifth, with an average cost of $14,366 for one infant. The median household income is $67,244, creating an expense ratio of 21.36 percent for one child. For two children — one infant and one four-year-old — costs rise to $25,485 and 37.9 percent of the median income.

Rhode Island is fourth, with $12,867 and 21.94 percent of the median household income of $58,633 for one infant. For two children, full-time childcare costs $22,907 and 39.07 percent of the median income.

Illinois is third, with $12,964 and 23.61 percent of the median income of $54,916. For two kids, costs are $22,531 and 41.03 percent of median income.

Massachusetts is second, with $17,062 and 27.02 percent of the median income of $63,151. Two kids in Massachusetts in full-time care costs $29,843, or 47.26 percent of the median income.

While you may be able to look for alternative childcare options (i.e. family and friends), preparing for these expenses is imperative before determining your housing budget.

Email Jennifer Riner

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