Nearly 1 in 5 will spend more than $2,000 per child
One-third of parents (33%) who plan to pay for childcare this summer will accumulate credit card debt from the expenses, according to a new study from Bankrate.com.
Parents who plan to pay for summer childcare and provided an estimate will spend an average of $998 per child this summer alone. In fact, nearly 1 in 5 (19%) plan to spend more than $2,000 per child.
“Childcare is expensive! It’s no wonder so many parents are going into debt trying to cover the costs. However, it is avoidable,” said Bankrate.com credit card analyst Ted Rossman. “Parents who require childcare can plan ahead. If they don’t have the cash on hand, opening a 0% interest card will give them time to pay off the expenses slowly without incurring additional interest and fees,” Mr. Rossman added.
Overall, childcare expenses average $11,619 during the school year (per child). With the summer expenses included ($998), that’s a total of $12,617 annually or $1,051 per month in childcare services.
Of those who responded, Northeastern parents are more likely to spend money on summer childcare (51%) and school year childcare (43%) compared to those in the Midwest, where only 30% pay for summer childcare and 32% make school year childcare payments.
Higher earners, with incomes of over $80,000 per year, are more likely to pay for summer childcare (54%) than those with incomes between $40,000-$80,000 (37%) and parents who earn under $40,000 (31%).
Methodology: All figures, unless otherwise stated, are from YouGov Plc. The total sample size was 3857 adults, 1006 of which are the parent or guardian of a child under the age of 18. Fieldwork was undertaken between June 6-10, 2019. The survey was carried out online. The figures have been weighted and are representative of all US adults (aged 18+).