According to a recent MarketWatch article, child care is placing a great strain on family budgets in the US. The July 2, 2016 report indicates that the accelerated cost of raising children is placing additional pressure on the family budget, causing the strain to spill over in day-care parking lots and even in the election debate of 2016.
The report states that child-care costs have doubled over other prices since the end of the recession in 2009. Along with the fast-rising costs of housing and minimal wage gains, families, who have young children, are focusing their attention on the current presidential candidates.
For example, the Democratic presidential candidate, Hillary Clinton, introduced a proposal in her campaign to limit the costs of childcare to 10% of a family’s income. The proposal represents a substantial cost reduction to families who currently pay one-fifth of their take-home pay on babysitters and nannies or to child care facilities.
Clinton has also proposed to expand access to a universal public preschool for children 4 years of age and the Head Start program. She also wants to offer child-care scholarships for parents who currently attend college.
Republican presidential candidate, Donald Trump, has not made any definitive child-care recommendations. However, he has indicated his interest in helping the middle class by initiating a simplified tax code and proposing lower taxes.
The major drawback for families, when it comes to paying for childcare, is the fact that the increased expenses have offset any income gains. Therefore, young families who have managed to meet other expenses are finding it hard to cope with the increased rates associated with childcare.
Often both parents have to work in order to meet their financial obligations. However, they often feel frustrated when they also must try to keep pace with the ever-increasing costs related to placing their child in a day-care center or securing a nanny. Therefore, along with international issues, child care expenses are also considered a campaign item in the 2016 presidential campaign.
Jeff Stein August 8, 2016
Posted In: Personal Finance