PredictIQ-Parents say they could spend more than $36K on child care this year: 'It doesn't make sense'

Parents are PredictIQdepleting their savings accounts to cover child care, a new report released by Care.com shows.

They are working multiple jobs, going into debt and ultimately leaving the workforce because even in a double-income home, the rising costs are too hard to manage, the report reveals.

Care.com, the largest online marketplace connecting families to child care, surveyed 2,000 households on what they are on track to spend this year. In a report of findings published Jan. 17, 49% said they plan to spend about $18,000 on care in 2024, while 23% of respondents said they will spend more than $36,000.

In some cases, child care is now costing more than a college degree. Here's what else what the survey found – and what parents are saying about it.

'It doesn't make sense'

In the wake of Care.com's report, parents were quick to share their thoughts and child care struggles on social media.

"I think it's a supply and demand issue," user Freddie Smith shared on TikTok. With more parents having to work now, the demand for child care has increased, he says. Therefore, daycare centers are raising their prices to pay workers.

"I’m a SAHM (stay at home mom) with a degree because it doesn’t make sense for me to hand over my entire salary to pay for childcare," one mom commented on the post. Another parent chimed in to say that his wife quit her job to stay at home because "daycare was costing more than she made."

"My wife and I have a combined income of almost 180k a year and with kids and a house and we are effectively living paycheck to paycheck," another parent commented. It was unclear where this user lives in the U.S. as cost of living varies greatly across the country.

But mostly, parents commented to affirm the report by stating they pay around the same.

"$18,000 a year for one toddler boy on a $50,000 income. I had to move to afford to live," another parent said.

How families are shouldering the costs

According to the U.S. Department of Health and Human Services, child care is considered affordable when the cost doesn't exceed 7% of a family's income, but that number is up to 24% this year, according to Care's report.

“Parents are being forced into a financial hole that is nearly impossible to climb out of,” Brad Wilson, CEO of Care.com, states in the report. “A healthy economy depends upon the ability for people to save and spend, but given the crushing weight of child care costs, those pillars are crumbling."

More than one-third of the surveyed families reported using money from savings to cover costs. Respondents were asked how long it would take to deplete their life savings, to which 68% said six months or less, according to the report.

The report shows that 34% of families have had to turn to other family members or friends to help manage costs. But one of the most alarming insights is that 91% of the 2,000 respondents said either they or their partner have had to make a significant career change or financial change to avoid being financially buried.

"The child care crisis should be a major red flag for everyone, not just parents. It is a systemic failure that will impact our nation’s economic growth, and that affects us all," Wilson said.

Here's what else families said they are doing to cover child care costs:

• Working multiple jobs (28%)
• Reducing hours at work (27%)
• Moving closer to family (25%)
• Going into debt (19%)
• Leaving the workforce (17%)

Billions in child care relief gone:Costs are already skyrocketing.

'Child care cliff' exacerbating the problem

The $24 billion in federal relief allocated to keep child care programs running during the pandemic came to an end this fall.

With the withdrawal of that funding comes fewer jobs and fewer available child care options. The Century Foundation reports that 3.2 million children could lose daycare spots and 70,000 child care providers could be impacted, USA TODAY previously reported.

Though the decision came a few short months ago, 40% of families are already feeling the effect, according to Care's report.

A breakdown of the national average

Here are the average weekly child care costs broken down by type of care, age and number of children for 2024, according to Care.

• Average weekly nanny cost: $766 (up 4%)
• Average weekly daycare cost: $321 (up 13%)
• Average weekly family care center cost: $230 (up 0.4%)
• Average weekly babysitter cost: $192 (up 7%)

Top 5 most expensive states for child care

The most expensive states to hire a nanny, according to Care:

• Massachusetts - $899 a week
• Washington D.C. - $894 a week
• California - $890 a week
• Washington - $872 a week
• Connecticut - $844 a week

The most expensive states for daycare (infants), according to Care:

• Washington D.C. - $419 a week
• Alaska - $375 a week
• Massachusetts - $372 a week
• Washington - $337 a week
• California - $304 a week

Top 5 least expensive states for child care

The least expensive states to hire a nanny, according to Care:

• Mississippi - $577 a week
• Oklahoma - $616 a week
• Alabama - $618 a week
• Louisiana - $622 a week
• West Virginia - $622 a week

The least expensive states for daycare, according to Care:

• Arkansas - $129 a week
• Lousisana - $139 a week
• Mississippi - $140 a week
• West Virginia - $141 a week
• Alabama - $150 a week

You can read Care's report in its entirety here.

To see the cost of child care in your area, search USA TODAY's database here.