Bloomberg released a damning report that explains how childcare costs exceed the average price of rent in the United States. This does not factor in the various costs of raising a child, as it merely looks at the cost of sending them to daycare. The true reason we are seeing a birth rate crisis across the world comes down to economics.
Over half of families (53.3%) were dual-income earners in the United States as of 2019. That figure has been steadily rising over the years, and we will see more parents re-enter the workforce amid the cost of living crisis.
The US Department of Agriculture completed a study in 2017, before we were wiped out by inflation, stating that it would take around $233,610 to $306,924 to raise a child in the United States. Brookings Institute found that costs from birth to age 17 would total around $310,605. Expect to pay more.
Child Care Aware of America, a nonprofit, found that child care costs exceed the average rent payment by over 25% on average, but can topple 50% of the average cost of rent in at least eight states. The study found that childcare costs alone, not the overall cost of raising a child, consume 10% of a married couple’s income. Childcare costs spiked to $11,582 per child last year, marking a 3.7% increase from the year prior.
Three million kids are expected to lose childcare benefits this year now that COVID benefits are not available. America is the only advanced nation that does not offer paid maternity leave thanks to lobbying efforts. Statistics show those who have the least have the most kids, and parents expect the government/taxpayers to pay for those costs.
The birth rate declined by 3% in 2022 from the year prior, marking the lowest fertility rate on record. There were 3.59 million new births in 2023, the lowest since 1979. The only demographic seeing a rise in births are women over 40 (13 births per 1,000 women), as couples simply do not have the funding to bring children into this world. If they want to combat the rapidly declining population, they must look at the finances involved.
