Story perspectives

Childcare Costs Soar: Families Need 176% Income Increase

2/25/2026

Summary

Story summary

A LendingTree study finds childcare costs for an infant and a four-year-old average $28,190 annually.
Federal guidelines say childcare should not exceed 7% of income, requiring $402,708.
The average two-child household earns $145,656, meaning it would need a 176.5% income increase.
In 20 states, families would need more than triple their income to afford childcare.
Families should maximize employer benefits and explore alternative childcare arrangements to alleviate costs.

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Story summary

A LendingTree study finds childcare costs for an infant and a four-year-old average $28,190 annually.
Federal guidelines say childcare should not exceed 7% of income, requiring $402,708.
The average two-child household earns $145,656, meaning it would need a 176.5% income increase.
In 20 states, families would need more than triple their income to afford childcare.
Families should maximize employer benefits and explore alternative childcare arrangements to alleviate costs.