A couple of months ago on Corporette, we discussed how much you should spend on housing costs, and today we’re going to talk about something that often looms just as large in the minds of working moms: the cost of daycare. Lately, the news seems to be full of articles about the cost of daycare (e.g., “U.S. Parents Are Sweating And Hustling To Pay For Child Care,” NPR), so we thought this would be a great time for a discussion. How much are you spending on daycare? Is the cost of daycare more than you expected?
For a quick review, the recent Corporette post covered the 50/20/30 rule for budgeting, which recommends that you spend no more than 50% of your take-home pay on fixed costs, use at least 20% for saving money and reaching your financial goals, and spend no more than 30% of flexible costs. How does the cost of daycare fit into the ratio? In the comments on the post, several readers shared their childcare numbers, and their responses ranged from 10% of their take-home pay to 30% (for a child with special needs). The average childcare spending among readers who shared information was about 18%.
The Care.com 2016 Cost of Care survey found some striking statistics: