Biggest Threat to Family Finances? It’s Childcare.

Everyone knows childcare is expensive. But some may be shocked to learn just how expensive it is and the enormous threat it poses to the family finances.

According to a recent Washington University in St. Louis study, the cost of quality childcare is the greatest threat to families’ financial security. Childcare makes up the single greatest portion of the average family’s monthly expenses — families spend more each month on childcare than they do on housing!

“Childcare is so expensive that income needs for a one-parent family with two preschoolers are equivalent to those of a one-parent family with five teenagers,” states the report.

It’s no surprise that families are looking for ways to save on childcare costs without comprising the quality of care their kids receive. Savvy parents are seeking alternative arrangements, such as nanny shares during the week and babysitting coops at night and on the weekends.

What are your thoughts on the dramatic costs of childcare? Have these costs put your own finances at risk?