How big of a mess is childcare in America? It turns out that a year of daycare costs more than a year of college, and the people who work there get paid less than a teenager at a fast-food joint. The whole system is so broken, it's like a roller coaster with no seatbelts. Let's dig in and see what's going on!
Here are Five Fast Facts on why childcare is painful, and what to do about it:
- 👪 It's The People - Daycare is so expensive because people are expensive! Daycares can't just hire a robot to change diapers or give hugs, which means a whopping 60% to 80% of their budget goes to paying their human workers. So, you're basically paying for a human to do a job that AI can't.
- 🤦 Regrettably Low - Speaking of pay, daycare workers are some of the lowest-paid people in the country, with a median wage of just $15.41 an hour. That's so low it makes Walmart greeters look bougie. Ouch!
- 😮 And Yet... - Despite the pay being so bad, families are spending an average of 22% of their entire household income on child care - depending on location, it could be as much as $147k per year! That's like spending a fifth of your family's money just to make sure your kids don't burn the house down while you're at work.
- 🤝 Employers Can Help - Companies can help out with child care, and some are! In Michigan, for example, if a company pays one-third of an employee's child-care costs, the state will pay another third, cutting the employee's cost by two-thirds. In other states, employers provide subsidized on-site daycare. It's like a company saying, "We love you so much, we'll help pay for your kids!"
- 👍 Government Can Help - Besides the above Michigan example, other states and cities are also getting creative with their funding, too. Tax breaks or carve-outs, funding from lotteries, and more help pay for early childhood education. The importance of pitching in together may finally be setting in, helping parents who need it most!
🔥Bottom line: The child care system in America is a hot mess, but there are solutions out there. Smart ideas like better pay, serious training, business support, corporate teams, and a reality check on its value could help. It’s about time we treated early care like actual education, not just an expensive afterthought because in the end, it’s more than just a babysitting service - it’s raising our future.
How can you help?
Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!
BTW, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!
