If there’s one thing all parents can agree on, it’s that kids aren’t cheap. One study puts the average cost of raising a child at $21,000 a year, and that price tag often begins with daycare.
America has a well-known child care crisis: Daycare openings can be hard to find and, when you do land a spot, it often costs more than college tuition. Childcare has become so unaffordable that it’s forced some low- and middle-income mothers out of work. And those who can afford it often find that it’s their biggest expense, often matching or exceeding the cost of rent or mortgage.
So, when parents no longer have to pay for childcare, whether it’s because their child became school aged or they qualified for their state’s free pre-K programs, it might feel like a huge weight off their shoulders. And it does give breathing room for some, but for others, that money often goes into other needs for the child as they age, like summer camp.
Two 30-something parents based in Michigan shared their different experiences when they finally stopped paying for childcare for at least one of their children (they both requested their last names not be used for privacy reasons). While the extra money has allowed them more freedom, it’s also just getting reinvested into their children.
‘It gave me the freedom to quit my job, but I don’t really see it as money back in my pocket’
A 38-year-old business owner with a 3- and 6-year-old
Annual household income: $160,000
Annual childcare costs with two children in full time care: around $29,000
Current annual child costs:
3-year-old
Daycare: $14,541
6-year-old
After care: $3,210
Child care for school breaks: $1,742
Summer day camps: $3,170
Total childcare expenses: $22,663
Difference: about $6,000
