Since the start of the pandemic, childcare costs have gone through the roof. Across the U.S., parents are seeing an average annual cost increase of 41% for center-based childcare providers, and spending an average of $14,117 annually, up from $9,977 pre-pandemic, according to data from a recent LendingTree report. Households with children younger than 5 were hit hardest by these increases, the report found. Since the pandemic began, center-based care providers for 3- and 4-year-olds have seen their annual costs increase by 57%. Costs for center-based care providers for kids under 2 grew by 37%. Care providers for 3- and 4-year-olds in Georgia, Florida, and Louisiana saw the biggest jump in expenses, with an annual average increase of at least 144%. As for the direct impact on households, Indiana families with kids under 5 put the biggest chunk of their income"20%"toward childcare, with the average family spending $11,212 a year. Vermont families are close behind, with 19% of their paycheck"an average of $13,538 annually"going toward childcare. Families in New Jersey, Mississippi, Kentucky, Texas, and North Dakota pay the lowest portion, at 11%. But they may also be seeing a jump in their costs in the near future; in each of those states, the average care center saw its expenses increase by over 50% during the pandemic. The bulk of the increased costs stems from staffing, which the Center for American Progress says makes up 70% of a childcare provider's total budget.
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