Bank of America Data Shows 7.7% of U.S. Households Pay $2,000+ Monthly for Child Care

The share of U.S. households spending $2,000 or more per month on child care has more than doubled since 2023, reaching 7.7% this year, according to cardholder transaction data from the Bank of America Institute. The figure exceeds median housing costs reported by the Census Bureau: a median mortgage payment of $1,521 and median rent of $1,413 as of 2024. An Investopedia review found typical care costs for two children, around $13,000 annually, surpassed median rent in 47 states and mortgages in 39. A Brookings Institution analysis this summer found only 40% of families with young children can afford life's necessities, versus 58% of childless households, with more than 4 million families pushed into financial instability by child care costs. Bank of America researchers suggested rising costs may explain the decline in labor force participation among women with children under 6 in 2024 and 2025, following two years of gains, per Bureau of Labor Statistics data. The number of households paying for child care fell 1% year-over-year in September, with the steepest decline among lower-income households.