Soaring childcare costs have forced 26% of parents to move, study finds – how to cut costs and save money

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Families struggle to pay for child care costs, and many even report moving just to pay for the expenses. (iStock)

Child care prices are skyrocketing, increasing 210% from 1990 to 2019, White House data shows. As a result, families seem to be taking more drastic steps to afford it.

For example, 26% of families said they had to relocate due to the high costs of childcare services, according to a recent study by The Penny Hoarder. Another 38% said they took a side job to cope with the high costs, 28% borrowed money from family and friends, and 25% even gave up their pets.

“In the Midwest, Northeast, and South, the price of a full-time day care center for two children is the highest category of household expenses, including shelter, transportation, food and health care, ”said Mario Cardona, head of policy and practice for Child Care Aware of America, a national children’s rights organization. “In the West, the price of childcare for two children is exceeded only by the high price of housing.

If you’re struggling with the resources to pay your child care provider and are considering things like moving, a personal loan could help you pay off other high-interest debt and lower your overall monthly costs. Visit Credible to find your interest rate on a personal loan and see how much you could save.

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How much do families pay for child care?

Penny Hoarder’s survey showed that parents pay a lot for child care programs. About 44% of families reported spending $ 1,000 or more per month, and 40% are in debt because of child care expenses.

About 84% of parents say they feel overwhelmed by the cost of child care and said this year’s expansion of the monthly child tax credit has helped pay for child care costs. children in 2021. Now, with the additional credit scheduled to end in December, 20% of families said they would not be able to continue paying child care costs with their current salary.

If you’re struggling to keep up with the rising costs of educating infants and preschoolers, consider taking out a personal loan to help pay off debt accumulated from child care expenses. Visit Credible to compare several lenders at once and choose the lender with the best personal loan rate for you.

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How you can save money for child care expenses

With more and more families in debt, leaving the workforce, and struggling to pay for quality child care, there are several things parents can do to save money on their daycare. Here are some child care solutions and other ways to save money to make sure you can pay for the highest quality child care for your children:

Think about part-time care

Some daycares offer part-time child care options and can often cut costs significantly. Parents who work from home or have a schedule that might allow their children to stay partially at home may consider consulting with their guardian about their options.

Refinance your loans

Refinancing your loans, including your private student loan or home loan, can help reduce your monthly payments by several hundred dollars. This could provide financial assistance to parents who can use the additional savings to better meet their family’s needs. Visit Credible to explore student loan refinancing and home loan refinancing options.

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Choose a secondary job

In today’s market, there are a variety of side jobs that people can take on, and these include work-from-home or self-employment options that can help families pay for child care without having to pay for child care. even leave the house. In fact, about 38% of families said they had to take an extra job to pay for child care, according to the Penny Hoarder study.

If you’re struggling to pay for child care and are looking at the options available, contact Credible to speak with a credit expert and get all of your questions answered.

Have a finance-related question, but don’t know who to ask? Email the Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert column.


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