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July 8, 2022

How to Cope with the Rise in Child Care Costs

Parents facing rising inflation are also battling another high cost: child care. About 63% of parents report child care has become more expensive this past year. Over half of parents surveyed (59%) say they are more concerned about child care costs now than they were in previous years, according to the Care.com 2022 Cost of Care Survey.

Life has changed tremendously for parents over the past two years due to the pandemic and now the economy. Making things even more challenging, about 9,000 daycares closed in 37 states between December 2019 to March 2021, according to a survey by ChildCare Aware. Child care costs are rising as availability shrinks.

How much does child care cost families in 2022?

According to the 2022 Cost of Care Survey, 72% of those surveyed said they are spending 10% or more of their income on child care, and 51% are spending 20% or more of their income. This makes child care unaffordable for most families, according to the U.S. Department of Health and Human Services, which considers child care affordable when it costs families no more than 7% of their household income. Some of the factors contributing to the increased cost of child care include inflation, child care centers accepting fewer children, fewer child care facilities, and child care centers’ increased cost of doing business.

How parents are coping with increased child care costs.

Parents are making sacrifices and cutting budgets to address rising child care costs. According to the survey:

  • 51% of parents are cutting back on vacations and travel
  • 51% are cutting leisure activities
  • 45% are reducing spend on food and dining
  • 41% are spending less on clothing
  • 37% are reducing spend on extracurriculars

Many parents are also making work changes to cope with increasing childcare costs like:

In addition, survey respondents said they were also changing their family plans to stay on financial track with 35% saying they are less likely to have more children.

How to save money on child care.

With child care costs rising, it’s important to re-evaluate your current child care situation. A nanny may no longer be affordable or the best option. Start by looking at your finances to determine what you can afford to spend on child care. Next, research current child care rates in your area so you know what a reasonable price for care is. You can use Care.com’s free interactive tools to learn average costs for full-time child care, nanny rates, and nanny taxes.

Investigate if your employer offers family care benefits. If they don’t, ask if they would be open to it. In addition, your workplace may offer a Dependent Care Account. With this account, you can put up to $5,000 in pre-tax dollars to pay for dependent care expenses. If you pay your caregiver on the books, you can take advantage of tax breaks and credits like the Child and Dependent Care Tax Credit.


Child care costs are on the rise and parents are feeling the financial pressure as they also battle inflation. There are a variety of factors causing increased child care pricing, including fewer child care centers, inflation, centers accepting fewer children, and the increased cost of doing business. Many parents are adjusting their spending to allocate more funds towards child care. If you are having financial difficulty paying for child care, it might be time to consider alternative care options. Ask your employer if they offer any family care benefits or if there is a Dependent Care Account.

If you need fast funding to help with child care or other costs, Uprova.com can help. You can request up to $5,000 in funding. If approved, you can receive funds in your account in as soon as one business day. Learn more at Uprova.com now.

The content of this website is for informational purposes only. Nothing on this website constitutes financial or professional advice. Consult a professional for advice suitable to your personal circumstances.

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