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How Much Does Daycare Cost?

how much does daycare cost? parents deciding childcare options
Aside from housing, childcare is one of the most significant financial considerations for families, and understanding how much daycare costs is essential to budgeting. According to the Census Bureau, childcare costs have steadily increased, leaving many parents balancing their need for quality care with affordability. In this blog, we’ll break down the cost of daycare and explore how you can better estimate and manage these expenses.
Table of Contents

What Is the Average Cost of Daycare?

According to the Office of the Under Secretary for Economic Affairs (OUSEA), the median monthly cost of childcare for a single child nationwide is about $867. This amount places childcare among the highest expenses for families. For example, OUSEA data shows that childcare costs alone can consume over half of some family budgets, with average daycare prices in large cities often exceeding $1,000 per month.

Key Daycare Cost Statistics:

How Much Does Daycare Cost in My State?

Daycare costs can vary widely across the country. The Economic Policy Institute identifies Washington, D.C., Massachusetts, and California as the top three most expensive states for daycare:

  • Washington, D.C. – $24,243 annually
  • Massachusetts – $20,913 annually
  • California – $16,945 annually

In these states, families may spend a significant portion of their income on childcare. For instance, in Massachusetts, the average cost for infant care can consume over 50% of a single parent’s income. However, daycare costs vary widely across the U.S., with some states offering significantly lower rates.

Full Daycare Cost Breakdown by State

This table shows the average cost of childcare per child in each state. A word to the wise: an Au Pair costs the same no matter how many kids you have, making the Au Pair program a much more appealing offer for those with multiple kids.

Data table credit: WorldPopulationReview.com

Center-Based Daycare Costs

Traditional daycare centers are a popular option for families but often come with higher price tags. Costs are influenced by:

  • Staff Qualifications: Centers often employ highly trained staff, leading to higher salaries
  • Staff-to-Child Ratio: Centers must adhere to strict ratios (e.g., 1:3 for infants), which increases staffing needs
  • Facilities: More established facilities with comprehensive play areas, safety features, and educational materials can drive costs up
  • Location: Urban centers generally have higher operational costs, which translate to higher daycare fees
  • Hours: Childcare centers often offer more hours or coverage (e.g., 7am-6pm) compared to in-home options 

Families considering this option must understand that while the cost can be higher, you often pay for a structured environment and access to licensed educators.

In-Home Daycare Prices

Now that you know why center-based care is more expensive, you’re probably eager to know, “How much is daycare in a home environment?” In-home daycare services typically offer a more affordable alternative. These are often smaller setups operated out of the caregiver’s home and may cost 15-20% less than center-based options. However, pricing varies based on:

  • Number of Children: Fewer children typically means higher prices per child, but larger in-home daycares can offer group rates
  • State Regulations: Licensing and training requirements can differ by state, affecting prices
  • Caregiver Experience: Caregivers with extensive experience or educational backgrounds may charge a premium

Families may find that in-home care offers a more personal touch, though it may lack the larger group activities and structured curriculums that centers provide.

Mom looking for affordable childcare

Factors That Affect Daycare Costs

Multiple elements determine daycare costs. Here’s a breakdown of the key factors:

Location

Daycare costs vary significantly based on geography. Due to the cost of living and demand, urban areas often have higher prices than rural regions. For example, a daycare in Los Angeles, CA, might be double the cost of a similar service in rural Kansas.

Age of Children Being Cared For

The age of the child greatly influences daycare costs. Infants and toddlers typically require more attention, so daycare centers must maintain lower staff-to-child ratios (1:3 for infants compared to 1:10 for older children), resulting in higher fees for younger children.

Insurance

Daycare centers require various insurance policies, such as liability and property insurance, which can be costly. These costs are often factored into the fees paid by families.

Facilities

Another expense for daycare providers is maintaining safe, clean, and child-friendly facilities. Regular safety upgrades, educational materials, and adherence to state regulations can increase operational costs.

Staff Recruitment, Training, and Education

Hiring qualified staff requires resources, including background checks, training, and ongoing education. These investments ensure that caregivers are well-prepared to provide high-quality care and contribute to higher daycare fees.

Complex Regulations

Daycare centers must comply with state, local, and federal regulations. Legal support is sometimes needed to navigate these rules, adding to overall costs.

Added Services

Daycares may offer additional services, such as:

  • Extended Hours: Before or after-hours care to accommodate parental work schedules
  • Meals: Nutritious snacks and lunches provided for children
  • Educational Programs: Structured activities or learning programs designed to enhance early childhood development

These services may add anywhere from $50 to $200 per month to your overall daycare expenses.

How to Estimate Your Daycare Costs

Estimating daycare costs can be challenging, as there are many factors to consider to get a clear picture of your total expenses. The process involves gathering and comparing information from different sources to find the best care that fits both your budget and your child’s needs. Here are some steps to help you estimate daycare costs effectively.

Gather Price Estimates

Start by contacting local daycare centers and in-home caregivers to collect pricing information. Be thorough in your inquiries; ask about not just the monthly or weekly rates, but also additional charges that may not be immediately obvious. These could include registration fees, deposits, material costs, and any early drop-off or late pickup fees. Remember that some daycare centers have different pricing tiers based on the child’s age, with infants and toddlers often costing more due to the higher level of care required.

Research Local Averages

To better understand what daycare typically costs in your area, research local averages. Many state or city government websites publish daycare cost estimates or maintain databases to help families compare rates between licensed providers.

Checking these resources can give you a baseline for what you might expect to pay and provide insights into what childcare services are most commonly used in your region. Costs can vary significantly from one city or town to another, so understanding the average rates will help you make a more informed decision.

Find a Child Care Resource & Referral Agency

Contact a local Child Care Resource & Referral Agency (CCR&R) for a more personalized and localized daycare cost estimate. These agencies support families in finding childcare by offering consumer and parent education, helping parents understand what to look for in quality care, and evaluating different providers.

You can access childcare referrals over the phone, where an advisor can discuss your specific needs and help identify options that align with your budget. Additionally, many CCR&Rs offer online referrals for exploring daycare centers, home-based care, and other services at your convenience.

Some even provide information on financial assistance and subsidies, helping families navigate options to reduce childcare costs based on income and eligibility.

Consider Hidden Costs

While the base tuition for daycare is the primary expense, there are often additional hidden costs to be aware of. These can add up quickly and significantly impact your overall budget, so make sure to factor them into your calculations.

  • Registration Fees: Often a one-time fee of around $50 to $200, which secures your child’s spot in the daycare
  • Deposits: Daycare centers may require a deposit to hold a spot for your child, which is usually equivalent to one week to a month’s worth of care and may or may not be refundable
  • Early Drop-Off/Late Pickup Charges: There may be additional fees if you need extended hours beyond regular care times. These charges can range from $5 to $20 for each additional 15 minutes outside of standard operating hours.
  • Supplies and Materials: Many daycare providers require parents to supply items such as diapers, wipes, snacks, meals, and occasionally educational materials or toys. It’s important to check what is included in the tuition and what is considered an extra expense.
  • Travel and Transportation: If your preferred daycare is farther from your home or workplace, don’t forget to account for commuting costs. This includes both time and money spent on transportation, whether gas, public transit fares, or ride-sharing services.

By taking the time to consider both the visible and hidden costs, you can avoid any surprises down the road and ensure that you are fully prepared to make a decision that works for your family’s financial situation.

How Daycare Costs and Benefits Compare to Au Pair Childcare

Many families are exploring alternatives to traditional daycare, such as hiring an Au Pair through Go Au Pair. Au pair care offers a different model—personalized, flexible childcare combined with cultural exchange—at an affordable price point. Au Pair costs are also offered per family, not per child, making Au Pair child care one of the most affordable child care options out there. 

Hiring an Au Pair means you get more than just someone who watches your child. Parents often report:

  • Affordable rates compared to local childcare rates;
  • More flexible scheduling due to a live-in arrangement;
  • A meaningful friendship between the parents and Au Pair;
  • Help with child-related chores, including the kids’ laundry;
  • A deep, loving relationship between the Au Pair and children;
  • Cultural and language immersion, widening the family’s worldview;
  • More time to focus on enriching the relationship between parent and child;
  • Improved health and lifestyle due to having a third adult in the home to manage logistics.

Au Pairs vs. Daycare Centers

When comparing Au Pairs to traditional daycare centers, several unique benefits of having an Au Pair stand out.

Unlike daycare centers, where the caregiver’s attention is divided among multiple children, an Au Pair provides personalized, one-on-one attention in the comfort of your own home.

This individualized care means that the Au Pair can cater to your child’s specific needs, routines, and preferences, creating a nurturing and consistent environment.

An Au Pair’s flexibility is another key advantage; while daycare centers typically operate during set hours, an Au Pair can adapt to your schedule.

Toddler successful with potty training

Long-Term Financial and Educational Benefits

Au pairs not only offer cost savings for families, particularly with multiple children, but they also provide long-term educational and cultural benefits that traditional daycare centers may not. 

Because Au Pairs come from various countries worldwide, they can introduce your children to new languages, traditions, and customs, creating a deeper understanding of different cultures and global perspectives.

The opportunity for language learning, personalized educational activities, and cultural enrichment can greatly enhance a child’s development.

Explore Au Pairs and Take Control of Your Daycare Costs Now

Daycare costs can significantly impact a family’s budget, varying prices by location, child’s age, and care type.

While traditional daycare centers and in-home services offer reliable options, Au Pair childcare through Go Au Pair presents a flexible, affordable alternative that cultivates cultural growth.

By exploring options like Au Pairs, families can take control of their childcare costs and provide their children with a nurturing, enriching experience. Start your journey with Go Au Pair today and discover the benefits of this personalized childcare solution.

*As of 2022, numbers adjusted for inflation

About Our Au Pair Agency

Go Au Pair is one of the best Au Pair agencies in the United States, providing quality child care for over 30 years. Beginning as a nanny company in 1984, we soon expanded to include Au Pairs. We were one of the original Au Pair Program sponsors designated by the department of State in 1989.

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