BofA: Nearly 8% of US Families Spend Over $2,000 a Month on Childcare, Double 2022 Share

3.8 · 10d ago · US · FINANCE

The Facts

  • Nearly 8% of US families spend more than $2,000 per month on childcare (daycare, nannies, other programs), more than double the share three years ago, per Bank of America Institute research. CBS News only
  • CBS News reports childcare costs are rising faster than rent, per new research. CBS News only
  • In September, daycare and school-related fees rose faster year over year than other essentials such as rent and medical care, per federal labor data. CBS News only
  • Families nationwide spent an average of 8% of monthly income on childcare in September, per BofA; federal guidelines consider childcare affordable at no more than 7% of household income. CBS News only
  • A family spending $24,000 a year on childcare would need to earn roughly $343,000 to stay under the 7% threshold; 2025 median household income was $87,460 per Census Bureau data. CBS News only
Dive deeper · 4 more factsShow less
  • Lower- and middle-income families spend nearly 9% of annual income on childcare, versus 7.3% for higher-income households, per BofA. CBS News only
  • In September, median childcare costs rose fastest year over year in Nashville, followed by Jacksonville and Phoenix, per BofA. CBS News only
  • Employment in the childcare sector fell 0.7% in September compared with a year earlier. CBS News only
  • AARP research shows grandparents provide $172 billion per year in direct financial assistance to families. CBS News only

Context

Research cited by CBS News MoneyWatch indicates childcare costs for US families are rising faster than rent and other essentials. Bank of America Institute data show nearly 8% of families spend over $2,000 a month on childcare.

Families spent an average of 8% of monthly income on childcare in September, above the 7% level federal guidelines consider affordable. The burden is heavier for lower- and middle-income households.

How the Agent Panel Scored This

Independent AI personas each scored importance 1–10; the story's score is a trimmed mean (highest and lowest votes dropped). Vote spread: 2.

5 Informed Citizen This is a research report on rising childcare costs affecting a meaningful share of families, newsworthy and relevant to household budgets but not a concrete new policy action or sudden event with immediate widespread impact.
4 Critical Reader This is a research report from BofA Institute with survey-style statistics on childcare cost burdens, a real but limited-scope finding that describes existing trends rather than a new policy or concrete action affecting many people immediately.
4 News Editor This is a research-based report on childcare cost trends affecting a meaningful share of families, but it is a data release without a new policy action or sudden event, so it reads as moderate-to-minor news with limited immediate impact.
4 Science & Tech Analyst This is a research report from BofA Institute on childcare cost trends, affecting many families but describing a gradual trend rather than a discrete new policy action or major breaking event, so it fits minor-to-moderate news with limited immediate impact.
4 Business Analyst This is a research report on rising childcare costs with notable household-affordability implications, but it reports no new policy action, market-moving event, or corporate shock, so its impact is moderate and limited in scope.
3 Policy Expert This is a private bank research report on childcare cost trends with no new law, ruling, or executive action, so it reflects minor news with limited immediate governmental impact despite affecting many families.
3 Global Affairs Analyst This is a research report on rising childcare costs and affordability, a meaningful social-policy issue but a data release rather than a concrete policy action or major event, so it has limited immediate impact.

Sources (2)

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