These States Are Spending the Most on Childcare. Is Yours on the List?

As the cost of living continues to rise across the United States, one of the most pressing concerns for families remains child care affordability.

Earlier this month at ProfitDuel, we conducted a comprehensive review of child care spending across the country, using the most recent demographic data available for 2024 to reveal which states are spending the most on child care per household.

So how do your monthly child care expenses compare with our findings?

Contents

1. Key Takeaways
2. The Results
3. What Does This Mean for Families Nationwide?
4. The Ultimate Income-Boosting Hack

1. Key Takeaways

We conducted a comprehensive analysis using data from the U.S. Census Bureau to identify and rank the five states leading the country in child care spending. The study focused on evaluating household spending on child care and the median household income, across various states in the United States.

• New data reveals the top five U.S. states where families are spending the most on child care, with Washington, D.C. leading at nearly $800 per household monthly.
  
  
• Rising child care costs across high-income states like New Jersey and Massachusetts highlight the growing financial strain on families, despite efforts to balance affordability and quality care.

The primary data source for this analysis was the U.S. Census Bureau, which provides detailed statistics on both household spending and income. We utilized the most recent available data, capturing spending and income figures at the state level.

2. The Results

Below is a breakdown of the top five states leading the country in child care spending.

1. District of Columbia

• $796.67 per household spending on child care (Monthly)
• $102k median household income

The nation’s capital tops the list with families spending a substantial $796.67 per month on child care per household. Although Washington, D.C. enjoys one of the highest median household incomes at $102,000, families still face significant financial pressure due to child care costs.

The cost of living in D.C. has always been high, but child care in particular is a pain point for many working families. Despite relatively high median incomes, the expense can still feel overwhelming, particularly for households with multiple children.

2. New Jersey

• $684.68 per household spending on child care (Monthly)
• $97k median household income

In second place, New Jersey’s families are spending an average of $684.68 monthly on child care. With a median household income of $97,000, this significant monthly expense is a growing concern for many parents.

New Jersey’s proximity to major metropolitan areas like New York City increases demand for child care services. This, in turn, drives up prices as parents vie for limited slots at daycares and after-school programs. We’re also seeing a trend where families are opting for higher-quality or specialized care, which comes with an even greater price tag.

3. Massachusetts

• $683.16 per household spending on child care (Monthly)
• $97k median household income

Third on the list, Massachusetts families are spending about $683.16 per month on child care per household, slightly less than those in New Jersey but still substantial given the state’s median household income of $97,000. The Bay State is known for its prestigious education system, and that emphasis on quality often begins with child care.

Massachusetts has long prided itself on providing access to quality education, and that mindset extends to early childhood care. Parents are prioritizing high-quality care that fosters early learning, which is driving up costs. The focus is not just on keeping children safe but preparing them for future academic success.

4. Maryland

• $673.42 per household spending on child care (Monthly)
• $98k median household income

Families in Maryland are spending $673.42 per month on child care, placing the state in fourth place on the list. Maryland’s median household income sits at $98,000, and like in other high-income states, the demand for quality child care continues to outpace supply, creating rising costs for parents.

5. California

$648.66 per household spending on childcare (Monthly)
$92k median household income

Rounding out the top five, California parents spend an average of $648.66 per household each month on child care, with a median household income of $92,000. Given the state’s reputation for high living costs, including housing and healthcare, it’s no surprise that child care expenses are also a considerable burden for families.

California’s high cost of living in cities like Los Angeles and San Francisco makes child care a critical financial concern for families. While there are efforts to make care more affordable, the current demand far exceeds what’s available.

3. What Does This Mean for Families Nationwide?

Our findings highlight that families across the U.S. are spending a significant portion of their income on child care, and those costs continue to rise. High-income states like New Jersey and Massachusetts are seeing child care costs climb, but even in areas with slightly lower income averages, such as California, parents are still facing substantial financial pressure.

Child care costs have been increasing across the board, and it’s something we anticipate will continue unless there’s more intervention. Many families are choosing between affordability and quality, and in some cases, they’re compromising their own financial stability to ensure their children get the care they need.

4. The Ultimate Income-Boosting Hack

Childcare costs can add up quickly, but they shouldn’t hold you back from reaching your financial goals. Finding ways to save could mean extra money for a new family car, a new home, or fantastic vacation.

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