Childcare Now Eats Up 20% of Household Income
Federal guidelines say child care should cost families no more than 7% of household income to be considered affordable. American parents are spending nearly triple that. The Care.com 2026 Cost of Care Report, based on feedback from 3,000 parents, found the average family now spends 20% or more of their annual income on child care alone. “Parents aren’t struggling because they’re doing something wrong. The system is asking too much of them,” says Sean Lacey, general manager of child care for Care.com.
One in Five Families Spends More Than $30,000 a Year on Care
The scale of this spending becomes clearer in raw dollars. One in five families, 20%, now spends more than $30,000 annually on child care expenses. Even more striking, 78% of families spend at least 10% of their household income on care, well above what HHS considers affordable. These numbers make clear that high child care costs aren’t an isolated struggle for a small group of families. They’re becoming the norm.
Nanny Costs Climbed While Daycare Prices Actually Dropped
Not every child care option moved in the same direction this year. The average weekly nanny cost rose to $870, up 5% from $827 in 2024. Meanwhile, average weekly daycare costs fell to $332, down 3% from $343 the previous year, and family care center costs dropped 6% to $323 weekly. Babysitter rates rose slightly to $175 per week, up from $167.
Toddler Care Costs Shift Depending on the Type of Care Chosen
For families with toddlers, the numbers tell a more mixed story. Nanny costs for one toddler rose to $936 weekly, up from $858 the prior year. Daycare costs for one toddler actually dipped slightly to $308 from $315, and family care center costs for one toddler fell to $301 from $319. For families with two toddlers, costs scale up accordingly across all three care types.
Child Care Is Just One Piece of a Much Bigger Financial Puzzle
Beyond direct child care costs, the report reveals parents are juggling far more caregiving responsibility than expected. The average parent reports being responsible for four separate care arrangements total, spanning children, aging relatives, pets, and housekeeping help. Parents managing these additional responsibilities spend an extra 17% of their annual income on top of the 20% already going toward child care specifically.
A Third of Parents Are Pulling From Savings to Cover Care
Financial strain shows up in concrete behavioral shifts among surveyed parents. Thirty-one percent report dipping into savings specifically to cover child care costs. Thirty-four percent have cut back on entertainment and leisure spending, while 30% have delayed major purchases like vacations or weddings. These aren’t hypothetical sacrifices. They represent real financial trade-offs families are making right now to keep up with care expenses.
Nearly a Quarter of Parents Have Taken On a Second Job
Some families are responding to child care costs by increasing their income rather than cutting spending elsewhere. Twenty-four percent of surveyed parents report taking on multiple jobs specifically to manage caregiving expenses. Sixteen percent say they’ve gone into debt as a result, while 14% have changed jobs entirely, suggesting child care costs are actively reshaping career decisions for a meaningful share of American parents.
Nearly a Third Rely on Family and Friends Instead of Paid Care
Not every response to rising costs involves spending less or earning more. Thirty-two percent of parents report relying on friends or family to help with child care directly, while 26% lean on family or friends for other types of caregiving support. Seventeen percent have applied for government assistance programs, and 21% have switched to less expensive care options altogether to manage the financial pressure.
Parents Overwhelmingly Support Specific Policy Fixes
When asked what would actually help, parents pointed to concrete policy solutions rather than vague wishes. Ninety-five percent said expanded tax credits for care expenses would help ease the burden. Ninety-three percent support employers offering subsidized caregiving benefits, and 91% back the idea of universal child care. That level of consensus across nearly all respondents signals just how widely shared this financial strain has become.
A Better Care Network Could Improve More Than Just Finances
The report’s findings extend beyond dollars and cents alone. Seventy-four percent of parents said having a better network of trusted caregivers would improve their mental and emotional health, not just their bank accounts. Lacey frames the stakes plainly: “When care takes this large a share of household income, it directly shapes career decisions and long-term financial stability. Left unaddressed, the result is a workforce under real strain and families forced into trade-offs that can be hard to undo.”