The Fact
The Federal Reserve reported that just over half of parents who used paid childcare in 2024 spent at least 50% as much on childcare as they spent on housing, which is usually a household's largest monthly expense.
What This Means
Childcare is not a small side expense for many working families. It can operate like a second major housing-sized bill, which helps explain why adding paid work does not automatically create the amount of usable household income a paycheck alone suggests.
Sources
- Federal Reserve Board, Report on the Economic Well-Being of U.S. Households in 2024, executive summary and childcare findings.