Friday, October 12, 2012

The High Cost of Childcare



A single mom of twins, Angie LaPort can't wait until next fall.  That's when her days of paying for full-time childcare will end.  For four years, LaPort's children attended a Kindercare center full-time.  Ms. LaPort was happy with the care her children received; but at $1400 per month, she could only make it work with the financial assistance of a family member.

"We were so fortunate to get help with childcare expenses from my grandfather, but he, too, had expenses to take care of,"  says LaPort, who works full-time, and attends classes at a community college.  When her grandfather could no longer afford to help out, Angie needed a more affordable option for childcare and started looking at other options.  In the end, Ms. LaPort made arrangements with two different stay-at-home-moms that she trusts to watch her children on different days.  LaPort admits that it's a complicated schedule; however, for now, it's the best choice for her family.

Like Angie, many parents struggle with the cost of childcare, as well as finding a schedule that works.  The cost of full-time, center-based childcare for an infant is nearly half (49 percent) the median annual income for single mothers, and 39 percent for a preschooler, according to the 2013 brief, Child Care Affordability.

Childcare affordability seems to be a concern regardless of ones family situation. With an average childcare cost of $13,756 annually per infant, and $10,723 per preschooler, center-based childcare can be a huge burdon on many family.


Why Are Costs So High?

Childcare professionals are not highly paid, but costs remain high due to several different factors.  Childcare is a labor-intensive industry due to required staff-to-child ratios.  These ratios range from one teacher for every five children through one teacher for every ten children depending upon the child's age.  Consider the cost of those ratios compared to an elementary school classroom or college lecture class.

Another reason is that full-time childcare programs must typically be open for 11 or 12 hours per day in order to accommodate working families.  In order for chlidcare programs to operate, they must be staffed with enough qualified teachers to cover all of their operating hours.

Additionally, for-profit businesses usually pay a higher property tax than residential properties.


Alternatives To Childcare

Many families have discovered that, regardless of quality care and/or changes to the system for assistance, full-time childcare just doesn't fit their current life situations. Therefore, they seek out alternatives, which require a myriad of differing sacrifices.

"Although I always wanted to stay home with my children, the fact that one or the other of our salaries would just go to day care meant it wasn't much of a choice anyway,"  says Michelle Little.  Ms. Little stays home and adds to her income by doing in-home childcare for two other children providing less expensive care for working moms that need it.

For Jennifer DeVine, a Certified Registered Nurse Anesthetist, her work schedule of 12 to 14 hours per day is the primary factor that keeps her from using childcare centers.  With a husband that travels and no extended family in town Jennifer says, "Daycare just isn't an option for us, as they open too late and close too early.  We have relied on nannies to keep afloat in the childcare arena.  So far, we have been extremely fortunate; but we are starting to search for another nanny since we are moving across town, and the commute will be too much for our current nanny."

Nanny costs can vary based on the amount of time needed, the needs of the family and children, and the experience and education levels of the nanny; but these costs are even more expensive than childcare centers.  The average cost of a nanny is approximately $14.00 per hour, but can go as high as $30 per hour.

For Christy Driver, the main motivation for transition from full-time work with a child in day care to being a stay-at-home-mom was more about reducing stress than cost.  "My employer was asking for more hours; and it was really difficult to pump at work.  At the end of the day, I really missed my baby,"  Christy says.  Ms. Driver made it work by cutting back on the grocery bill and clothing expenditures for herself. Though she knows firsthand that staying home is certainly stressful in different ways, Christy firmly believes it's the best decision for her family at this time.  Christy states, "I am able to run errands during the day when there is less traffic; and I have more flexibility when family comes to visit."


The Cost of Leaving Work

Christy Driver, in addition to many other parents who have left their career for a time in order to be home with their children, often worry about the ability to keep up their professional skills.  "The part that scares me is that I know I want to go back to work eventually; and I don't know how to keep up with technology in my field," Driver says.  "I'll be older and out-of-date.  I wonder if I'll be able to find anything, or if I'll have to go back to school."

This, of course, is a valid concern, and taking years off work does affect women financially in the long run.  While a reduction paid work may make economic sense for women at a single point in time, if does depress women's lifetime earning potential.  This, in turn, can hinder their capacity to support themselves in retirement.  Research suggests that access to work/family supports, including reliable childcare and health insurance, increases women's earnings and job attachment, particularly for lower-waged women.

If you decide to leave the workforce for a while, there are many resources for parents when they are ready to return.  One such resource, www.irelaunch.com, is dedicated to helping people successfully re-launch their careers.  Another site, tentiltwo.com, focuses on placing people who might not have extended school hours childcare in part-time jobs that accommodate the school hours of their children.

Rachel Saunders, head of communications for Opportunity Now, encourages parents to remember that being at home with kids develops new skills that can help in a career.  Saunders states, "Being at home with kids develops your people skills, your creative problem solving, your ability to multi-task, and your time management like no job I've ever had...You should approach ever job with your head held high."

Regardless of the childcare choices you make for your family, it's absolutely worth it to spend some time researching your options.  You might find a situation you had previously not considered that is a better fit for your current life stage.

Kristine Kilgour, M.Ed., LPSC
School Counselor & Mediator
gracecoachingandmediation@gmail.com