Census Findings: Child Care is a Major Financial Burden

by Karen Schulman, Policy Analyst
National Women’s Law Center

New Census data released last week provide more evidence that paying for child care can be a tremendous financial burden for families, particularly for families with low incomes.

Families with incomes under 100 percent of poverty who pay for child care spend an average of 29 percent of their income on child care, according to the new Census data. Families with incomes between 100 percent and 200 percent of poverty who pay for child care also spend a significant portion of their income on child care — 14 percent. In comparison, those with incomes at or above 200 percent of poverty spend 6 percent.

The Census data also demonstrate that low-income families have less access to good child care and after-school options for their children. Only 7.8 percent of children ages five to fourteen with incomes under 100 percent of poverty and 10.3 percent of children ages five to fourteen with incomes between 100 percent and 200 percent of poverty participate in enrichment activities (including organized sports, lessons, clubs, and before- or after-school programs), compared to 17.6 percent for children ages five to fourteen with incomes at or above 200 percent of poverty.

Clearly, more investments in child care and early education are needed to give low-income families greater access to good-quality care. This is particularly critical given that federal funding for child care assistance has stalled over the past several years and given the challenges families face in today’s economy.

The National Women’s Law Center plans to join with other national, state, and local organizations and individuals to bring this message to Congress on March 4th, tomorrow. Advocates will be calling and emailing their Congress members to urge them to act this year to make child care and Head Start national funding priorities.