Nearly a quarter of family income goes toward childcare costs, new report finds

TAMPA, Fla. - A new report found childcare can cost more than college tuition, with a fifth of parents shelling out as much as $36,000 a year in parts of the country, and parents in Tampa Bay said they feel that squeeze on their wallets locally.

The 2024 Cost of Care report from Care.com found nearly half of parents surveyed around the country spent $1,500 or more a month and 20 percent of parents spent about $3,000 a month or more in 2023. On average, families nationwide are spending roughly a quarter of their household income on childcare, the report said.

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"As far as where we live, we pay more in childcare than it would be for us to send them to a private high school. So, it's kind of wild," said Natalie Gunning, a mother visiting Tampa from Louisville, Kentucky. "We pay about $1,600 a month for him to go to daycare. And then that's one of the more expensive ones in Kentucky."

It’s a story Fred Hicks is familiar with at the Early Learning Coalition of Hillsborough County.

"Unfortunately, when they sit down to try to make ends meet, they're unable to. The cost of rent, the cost of childcare, the cost of groceries, these things add up," said Hicks, the CEO of Early Learning Coalition of Hillsborough County. "In some cases, you may need two incomes to really try to survive. Several local studies have shown that in order to survive here in Hillsborough County, you may need up to $77,000. That's a toll that many cannot carry, especially now."

The coalition works to provide families in need with vouchers to help subsidized their childcare costs, and Hicks said a few bills up in the Florida legislature could help the industry.

"That economic eligibility, cliff, another component is help for those with children with special needs. A third is a way to increase our funding so that we can reimburse our childcare providers at a higher rate," said Hicks.

The costs forced some to rethink who cares for their child, like Yisenia Abrahantes of Tampa.

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"I actually stayed home with him for the first year, and then I found it more affordable and a better option to pay my mom to retire her completely," said Abrahantes.

Abrahantes said she works from home, but she says remote work doesn’t mean you can watch your child because you’re working. So, she said daycares are necessary, and the price can be crushing.

"I think it's one of the reasons a lot of my friends are choosing not to have second kids or third kids or even have kids to begin with, because it's literally another mortgage," said Abrahantes.

The report said high costs also impact the economy because it makes it harder for families to save. The Early Learning Coalition of Hillsborough County CEO said their organization helps tens of thousands of children every year, and they plan to watch what happens with Florida’s proposals to help families.