The Childcare and Development Fund Can Assist with the Rising Costs of Childcare

With more and more families relying on two incomes to get by, the cost of daycare has become a prominent issue in a family’s budget.  Sometimes it can seem as though one of the parents is working just to afford the expense of daycare!  Education Week magazine conducted a survey in 2002 that reported an estimate of 6 out of 10 children, under the age of five years old, were being cared for while their parents are working.

The average cost of childcare varies widely according to the age of the child, what state a person lives in and whether their city is located in an urban or rural area. A national average puts childcare for a 2 year old at $611 per month. This is a median which includes the highest amounts of $1000+ per month in New York and Boston, along with the lowest amounts of $350-400 per month in Jackson, Mississippi.

The family working for minimum wage, $7.25 per hour, can be hard pressed to pay for childcare. Using the figures of the national childcare average of $611 per month, someone earning minimum wage will have less than $500 left for monthly necessities. There lies the question, how do parents-especially single parents, pay for childcare and have money left for food and shelter?

While some parents can rely on companies such as Merck, Campbell Soup and Apple Computers, along with 150 other businesses and 600 hospitals to offer on-site childcare, most are left to their own devices. Some parents have resorted to asking a relative to watch their children or created a sitter co-op in which several people in the neighborhood share a single sitter. The government offers tax credits or tax refunds for those that qualify. This money can be used to pay for future childcare.

In 2008, the Childcare and Development Fund (CCDF) allotted an annual $5 billion to states and territories. CCDF is available to assist families in transition to find child care so that they can return to work or attend education/training classes. This funding is available to low income families and families who are temporarily accepting public assistance. Certain families may be eligible for vouchers for subsidized childcare services .

The cost of childcare in the United States varies greatly according to region. Paying for childcare involves being creative as well as asking for help when it is needed. There are government programs that exist to assist hard pressed families to pay for childcare. Each family must decide what is best for them.