California ranks among 10 priciest states for childcare. See what families spend

California is already one of the nation’s most expensive places to live, and childcare is adding to the financial strain for many families.

A new report found that California parents spend the second-highest share of their income on childcare in the country.

Personal finance website WalletHub compared all 50 states based on the affordability of center-based and family-based daycare.

“It costs a lot of money to take care of a child’s needs, and many parents are left with the dilemma of whether to forgo one salary to do their own childcare for the first few years or to shell out a significant chunk of their income for childcare services,” WalletHub analyst Chip Lupo said in the June 30 report.

According to the study, married couples with two working parents can spend about 14% of their household income on daycare. For single parents, that share can climb to 59%.

Here’s how much California families spend on childcare:

How much do US families spend on childcare?

For many families across the country, childcare isn’t optional.

According to the U.S. Bureau of Labor Statistics, approximately 66.3% of families with children have both parents working.

“It is equally essential for single parents, who typically don’t have the option of relying on a partner for daytime care,” WalletHub said.

Data from the U.S. Department of Labor show that the annual cost of full-time care for one child ranges from about $6,500 to more than $15,000 nationwide, depending on where a family lives.

According to WalletHub, Nebraska is the least affordable state for childcare.

Married couples there spend 10.7% to 13.6% of their median household income on daycare.

“Interestingly, Nebraska has the fifth-most expensive family childcare and the third-costliest childcare centers, with childcare centers only marginally more expensive than family care,” WalletHub said.

Single parents in Nebraska spend 32.2% to 41% of the median income on childcare.

How much do California families spend on daycare?

California ranked as the second-least affordable state for childcare, according to WalletHub.

Married couples in California spend 10.6% to 13.6% of their median household income on daycare, depending on whether they choose a family member or center for care.

While California has the nation’s 12th-highest median income for married couples at $144,216, childcare costs remain among the highest in the country.

Single parents face even steeper financial strains due to daycare costs. In California, they spend 32.7% to 42.1% of their annual income, according to WalletHub.

“Part of the problem is that individual parents in California earn less than their married counterparts on a per-person basis, WalletHub said, noting that the Golden State has the 10th-highest median income in the country, at $46,632 a year.

Which states spend the most on daycare?

According to WalletHub, these 10 states spend the most on childcare:

1. Nebraska
2. California
3. New York
4. Oregon
5. Washington
6. Wisconsin
7. Montana
8. Massachusetts
9. New Mexico
10. Hawaii

Where is childcare the cheapests in the US?

WalletHub said these 10 states spend the least amount on daycare:

1. Mississippi
2. South Dakota
3. Alabama
4. Georgia
5. Alaska
6. Louisiana
7. South Carolina
8. Idaho
9. Kansas
10. Iowa

How did WalletHub come up with its findings?

WalletHub ranked states by comparing the cost of full-time family-based and center-based childcare to household income.

The site adjusted daycare costs based on the median annual income of married couples and single-parent families.

The rankings are based on data collected as of June 2, from sources including the U.S. Census Bureau and Child Care Aware, WalletHub said.

Angela Rodriguez

The Modesto Bee

279-386-2738

Angela Rodriguez is a service journalism reporter for The Bee. She is a graduate of Sacramento State with a bachelor’s degree in journalism. During her time there, she worked on the State Hornet covering arts and entertainment.