The cost of childcare is increasingly becoming an affordability issue for parents.
According to the Federal Reserve Bank of Atlanta, from 2020 to 2024, childcare prices increased by 29 percent, compared with a 22 percent rise in overall prices. The report said childcare costs now often "far exceed" the 7 percent of income affordability benchmark established by the U.S. Department of Health and Human Services.
In the latest study, the Atlanta Fed looked at childcare costs in two states, Georgia and Florida, and found 85.4 percent of Florida families are estimated to spend more than 7 percent of their income on childcare.
The estimated weekly costs for the care of infants/toddlers and preschool-aged children in Florida are $268 and $208, respectively, and the median percentage of income families would need to pay for childcare is 13.9 percent.
"In Florida, the median percentage of income families would need to pay for childcare is 16.8 percent," the report said.
The study says the costs are putting significant financial pressure on parents and forcing difficult decisions on work hours and even leaving jobs.
Click here to read the full report.
Consumer
