LOUISVILLE, Ky. — The price of child care for most age groups is higher than what is considered affordable across the U.S.
The problem has only gotten worse since the pandemic, while prices have spiked. Data from the advocacy group Childcare Aware of America (CCAOA) shows the average price of child care grew 5% each year in 2020 and 2021, which outpaced inflation. Prices were no longer growing at such a fast rate as of 2022, but they didn’t drop either.
The Biden administration and Congress tried to alleviate some of these problems during the pandemic with more than $50 billion in emergency funds for the child care industry, but that relief ended in September 2023.
As a result, many states have stepped in with their own solutions instead. The National Women’s Law Center found that at least 11 states have invested significantly more in child care in the last two years.
The national annual average price of child care in 2022 was $10,853, according to data from the CCAOA.
The data shows that it would take 10% of a married couple with children’s median income to afford this national average price, and it would take 33% of a single parent with children’s median household income to afford this national average price.
This is more than the recommendation from the U.S. Department of Health and Human Services that child care should not cost families more than 7% of their annual income.
So what does the price of child care look like in Kentucky and Indiana?
Kentucky
The CCAOA found that the average price for child care is $7,345 per year for an infant in childcare and $7,020 per year for a toddler. For an infant in a center-based child care, it's $9,685 per year and for a toddler it's $9,243 per year.
According to data from CCAOA, the median income for a married couple is $94,403, which means center-based childcare for an infant would use 10% of family income. Whereas, the median income for a single parent family is $26,701, so center-based child care for an infant would use 36% of family income.
There are 1,756 licensed child care centers and 203 licensed family child care homes, according to data from the CCAOA.
In fall 2022, legislators made a change that the state would cover the cost of day care for parents who work in the child care industry. At least a dozen other states are considering a similar program, with some of them being Arizona, Colorado and Indiana.
Indiana
The average price of child care is more in Indiana than Kentucky.
The CCAOA found that the average price for child care is $8,104 per year for an infant in childcare as opposed to $7,631 per year for a toddler. For an infant in a center-based child care, it's $11,897 per year and for a toddler it's $10,491 per year.
According to data from CCAOA, the median income for a married couple is $99,945 which means center-based childcare for an infant would use 12% of family income. Whereas, the median income for a single parent family is $30,511, so center-based child care for an infant would use 39% of family income.
There are 760 licensed child care centers and 2,157 licensed family child care homes, according to data from the CCAOA.
How does college tuition come to other expenses?
The average price of care for two children exceeds average housing costs in three of four regions – the Midwest, the Northeast and the South.
The CCAOA compared the cost of child care to housing and college tuition. For both Kentucky and Indiana, child care is the most expensive.
In Kentucky, data shows that it costs $18,210 for child care and housing costs nearly $4,000 less and college tuition costs $3,000 less than that. In Indiana, data shows that it costs $20,219 for child care with housing and college tuition again costing thousands of dollars less.
For more information about child care in Indiana, Kentucky or any other state, please click here.
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