Why Childcare Has Become So Unaffordable | Business Insider Explains | Business Insider
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- čas přidán 14. 05. 2024
- Childcare costs are skyrocketing, forcing families to move across the US. But there may be a light at the end of the tunnel.
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00:00 - Intro
00:21 - Costs Of Raising A Child
01:08 - Childcare Expenses
01:52 - Why The Cost Is Up
02:25 - The Impacts Of Higher Prices
4:38 - Credits
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#childcare #personalfinance #businessinsider
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Why Childcare Has Become So Unaffordable | Business Insider Explains | Business Insider
"Daycare workers don't want to work at daycare because of super low pay" and "daycare is getting way too expenaive. Something is missing here, lol.
Both can be true. There are a lot of costs associated with providing child care, and labor is huge. Even having underpaid staff is a massive expense for providers. It's damn near impossible, if at all, to have cheap unsubsidized child care from what I've gathered. Unfortunately in America, there isn't a robust system for providing child care like most other developed countries.
Daycare management is taking too much of the money.
@@Xamarin491ah yes, the well known millionaire daycare managers club...
In Australia average career of a daycare worker (who aren't owners) is 3 years. And these are people who specifically train to do it.
@@jecsahI know a local daycare owner who drives an Aston Martin SUV. Yeah.
Childcare? I can't even afford myself care. People at my job live in vans in the parking lot because housing is so insane.
Thats crazy... How many live in vans?
@@hansdampf2084 I constantly see like 5 RV vans parked in our staff parking lot. They’re there 24/7.
@@djp1234 may i ask you where you live? Im just curious
@@hansdampf2084 San Diego
@djp1234 I mean... if it's an RV or the Mercedes cabby, that's not a bad lifestyle change. freedom and good everything if the weather is nice, and full sustainability is WAYYY easier
Please explore further what's going on between: "Childcare is SOOO expensive, 'cause it's hard to hire childcare workers, who *don't make very much so it's not attractive.*" I'm just wondering, WHERE is the money going if not to the workers? Please explore the root of this problem.
To the owners or directors/board
35 bucks an hour is not enough for a single parent to sustain herself, and most childcare pays less than that!
Landlords.
Rent for the building. Heating and cooling too. Babies cannot be in cold rooms.
@@Pugetwitch But it's great money for a young girl to rake in! Why do assume that daycare workers have to be single mothers?
Perhaps this is why population is decreasing in many countries
With no longer any expectations of any economic return after they grow up. Lucky to get a visit during the holidays.
Maybe thats a good thing lmao
Its more because femnazi ideology
Which countries? Usa only
@@idkkdi8620 all ig 😂
I don't even make 26k a year, and I take care of people with Alzhiemers.
That is so wack. Sorry dude 😢
Respect!
This is why its so important to have a good relationship w/ your parents
Count your blessings if you have parents or other family members who will help watch your kids while you're at work
having a good relationship to family is great ofc but they should not have to be filling in for the shortcomings of a system.
@@approachingetterath9959 when was childcare ever a "system" in the past?
You only had you and your family to depend upon (the fulltime child care being your wife???)
The problem stems from people expecting free/subsidized things that you can handle yourself.
@GameFuMaster this is a false rose tinted view based on the 1950s-70s, which were an unusual time in history, not the norm.
Working class women still worked for much of history and would either do the work with the child in tow, or in the case of some factories, childcare would be provided in some form by the factory owner, with an on site nursery. By the time a child could walk, they were often working alongside family in agricultural or even city work.
The trouble is, if you are young and your parents had you relatively young, then your parents are still in work at the time you need childcare. A 25 year old with a 50 year old mother will not be able to get childcare from grandma as grandma isn't retirement age yet.
Hell, I'm 34 years old and pregnant with my first, my mum is in her 60s and still works because she finds it fulfilling.
My spouse is an in home licensed daycare provider. She can have 6 kids total. Her state subsidy payment for low income families is roughly $150 a week, meaning if that's all she took, her income is capped at $46k. She also pays 15% self employment tax, in edition to other expenses.
Daycare is expensive because of head count limits.
Insurance companies and government licenses are a major cost to running a childcare center.
Blame Insurance people and government agencies for the problem.
f you you have no sense its the parnets fault
Nope. Nope.
Beginning of life and end of life all needs a lot of human care.
Avoid carbs and sugars and you will outlive your Toyota! 😺👍
@@fidelcatsro6948 The real Fidel Castro never said anything better and more true than that 😅
@@IRosamelia Viva health revolution!
@@fidelcatsro6948 ¡Viva México cabrones! 🌮
you mean money
The reason childcare is expensive and daycare workers are underpaid can be contributed to business expenses. The amount paid for rent, health insurance, certifications, and taxes I'm sure are main contributors to what's driving up cost and down pay. Most childcare places that have good service and relatively affordable are either associated to non-profit institutions, private institutions (like daycare at Google) or government institutions (like Universities). Having a stand-alone daycare business is very tough if you're trying to do a good job at an affordable price.
> child care cant wait till this pay bill is gone
Wait till you need to pay for their college, university, car and mortgage downpayment. This is where the actual "fun" begins.
Mortgage?! Um no,time to cut the umbilical cord. Lol
Your adult child needs to pay their own mortgage.
Children, for some people easy to make but not easy to raise
As a parent of a toddler in daycare, in New Zealand, I can confirm things are ridiculously expensive. We opt for the second hand everything that we can, especially clothes, but even reusable nappies/diapers. We scrape by, but there are parents far worse off than us.
There is also a massive cost to the society when the SAHM/SAHD misses out of work experience for several years - imagine staying at home for 5-7 years. That's missing out on a lot of work experience and promotions for the individual person - and alot economic activity and taxation for the wider society.
Having children never makes economic "sense."
It can make economic sense if you can raise a responsible successful human that will take care of you when you’re old. Adult elderly care is more expensive than childcare.
Very true! You have to want them❣️
@@Kimberly-wt1nu You don't strive to bring a child into this world just for them to take care of you. They're not servants.
@@XC-Z-cv8qw No, you strive to raise a child in order to have a loving, caring family, and for that child to grow up to becoming a loving, caring person. If you do this, you'll be betting off society, as well as yourself when they return the favor when you're old and need that love and care.
@@xplodax Sure, those words and ideas are sweet and all, but your kids ain't gonna be there 24/7 taking you to your toilet or bath and wiping you. They're not even professional aged caretakers. Who's going to take care of you then if not professional caretakers?
Not true that it goes away after they go to school. Most of the time you need after school care and during the summer you need care as well.
I'd say the cost of an extra bedroom is the most significant item
Well, in Europe, it's not.
It is subsidized by the state, like our universities are (safe for UK)
Time to move out from US!
Childcare is my second biggest expense. It is about 2 and a half months salary for 2 kids. Healthcare is my bigest expense at 4.5 months salary for a family of 4. Then again our home was only two years salary. Every country has its issues when it comes to what is cheap and what is expensive. But have at least 1 child if you want one. Its worth all the money in the world and more.
Amazing production and very very creative. Wow
Childcare shouldn’t even be a thing. We should be able to take care of our own children. We should be encouraged and supported. Aren’t the children the future of society? Then shouldn’t society support us in taking care of our kids??
I'm in Quebec. I pay ~9 CAD/day.
So basically having one parent stay at home and don't have children out of wedlock solved the whole thing?
Yes but having women join the labor force during and after WWII pretty much shifted the cultural and economic landscape by making it extremely difficult to support a family on a single income anymore.
many families cannot afford to live off one salary due to the cost of living across America. and if both partners in the married couple earn relatively equal salaries, they actually get taxed at a higher rate than if they would've filed as "single". It's definitely not as simple as you try to make it seem. There were complex layered points in the video for a reason.
If the cost of child care is $25,000 a year, you’re financially better off having both parents work assuming the one that would stay home makes more than 25,000 working
Accurate. my family pays +$17K a year on daycare and that's only because I get a federal employee discount. The true cost in our area is $24.9K
I wasn't financial free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone's that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made.
yeah investment is the key to sustaining your financial longevity but venturing into any legitimate Investment without a proper guidance of an expert can lead to a great loss too
Hello, I’m 37 and I am not worth much yet , please help me out. Bought my first house last month and I can't seem to make any other smart investment.
wanted to trade, but I got discouraged with the market price fluctuations
Can you recommend a guide for me?
Haven't you heard of Expert Chrissy Barymoer ?He gives excellent guide on the right stock with high dividend
Gosh, it’s almost as if it would be better for one parent to stay home and watch the young child while the other one works and earns a living… 🤔
Is so hard to add -in USA at the end?
In usa, yeah.
As an Indian I can confirm Our mothers and grandmothers don't take any fee but appreciation, now i get it why we are most populated. The cost of raising a child is minimal just the food ,until she or he turns 14 cause till 14 the cost of education is free. Yet India is still a developing economy, so US still has an upper hand here. Btw love Business Insider!
Don't forget the Before & After Care for single parents with grade-school age kids that make too much for POC but not enough to survive without a way to make extra cash.
350 a month over here
10,974 views and 356 likes. That says it all
Daycare workers were grossly underpaid for decades.
You know, the cost of raising a child may be a better measure of inflation than the cost of buying food.
Corporate greed, saved you a watch.
2nd hand clothes
Have you guys started to add English dubs for the blind and visually impaired yet?
Govt regulations, subsidies accommodation...
Every year that goes by just makes the DINK lifestyle more appealing
I wonder why childbirt rates are declining ... So difficult to figure it out!
This video didn't actually answer the question. The two reasons given (1:46), federal covid funding and then low paid workers, means child care should have cost less during covid and still be low because of the continued poor pay for workers.
I have family to take care of my kids....and when we get too busy to do it... I'm buying a one way ticket for them, I will send them back home. They will come back to America when they've reach regular school age, or maybe longer, because they have to learn our culture anyway 🤷🏽♀️.
Fundamentally correct.
kids are priceless
in our country a mother usually stays at home with a kid up to the age of three, then goes to kindergarden which is usually free (if public) and a mom can return to work
Where do you live?
@@AnnaAtl Slovakia in Europe
10k is 10% of 100k house. That’s middle class not the median in the country. Most cities in the world the average ins way lower than this. That’s also. 10% pre tax so if you make 70k combined pre tax it’s probably 50 after tax. Loosing 10k from 50k is hard to survive for a family of 3. Another kid and now you’re down 20k and have 30k left for a family of 4. … it’s a ripoff because these places want a early childhood learning bachelors degree yet pay minimum wage
You need to have a double income to live comfortably for the average American. That means you're all in on child care at $2000+ per month. That alone is 33% of your median income. Cant get a house for less than $3k/mo. Forget utilities, food, transportation, insurance. Pretty sure the main reason people aren't having kids is cost.
I dont think increasing government funding will help this issue
and kick out on 18th birthday
Wow that is expensive. I live in Finland and i pay 46€/ month for the daycare of my 5 year old. For 46€ he can be there 150 hours / week.
What do you mean? You can't pay this amount directly to the worker, can you? It must be some kind of goverment system or something
@@comelfon Yes it is the government that owns all the schools and daycare. It is not common here to have kids in private daycare.
Childcare workers get paid peanuts!
We're paying AU$200 a day and that considered cheap.
😂 America problems - UK childcare is free and covered in tax. American economy pays workers pennies and expects them to cover all these costs relying on tips… oh and tax is still not covered 😮
UK HAVE FREE MEDICINE!
ДА Я ЧЕРЕЗ ГУГЛ ЧИТАЮ.
АНГЛИЧАНЕ КАНАДЦЫ АВСТРАЛИИЦЫ БЛАГОДАРНЫ И РАДЫ БОГУ ЗА БЕСПЛАТНУЮ МЕДИЦИНУ!
UK + EU +CANADA = VERY BEST FOR LIFE!
Radical idea... take care of one's own children!
And who will work 40+ hours a week to afford groceries, clothes and pay the bills while you stay home with the kid? Because even 2 incomes ain’t cutting it nowadays
@@spoofemail7632 childs mother should stay home to take care of children while childs dad work to get bread.
@@prasbshe said that is what' some parents are opting to do, if there is two. But plenty may be in a situation where one income is not enough
Well, then if the wife gets divorced she's left with no work history and x amount of kids. And if not you loose out on 5+ years of career progression
But she just takes 70% of the man's hard earned money from before the marriage, during the marriage, and fee money forever after in child support that she spends on herself and alimony, despite her secretly being in stable other relationships... hence women initiate divorce around 80% of the time... then the false accusations may start just to hurt the man, get free govt money, and full custody for that sweet sweet 'child' support... if the man is even more unlucky @@somosjuntosadelante
This might be controversial, but you should expect to raise your children & one income should be enough to pay for those costs. Childcare being subsidized by the government isn't a magical solution. You are asking families who are more traditional to foot the bill of a service that they won't utilize. Essentially making it harder for those families to afford more children unless they are put into a government subsidized childcare facility & forcing more families to have 2 working parents. That can't be good for the development of the children. Just pay us more. Corporations need to stop exploiting workers out of existence.
100% Looks like alot of people are so far removed from this kind of a live that thexy can't even conceive of it. The only solution they can come up with is "daddy governement", but really that shouldn't be necessary, and it isn't if we can get back to a society that values it's people and it's own continuation
I'll never have any kids. I still happily pay for public schools. Stop being so selfish.
@@rachelrolltide3106 That's great buddy but you completely missed my point. You can choose to give your money to charity, but forcing families who can't afford it is immoral. That is selfish.
family is not for the poor! get a 2nd job
Exactly! thats why mother should stay at home taking care of child, than earning peanuts working meaningless job.
In india we dont need medical insurance like your country 😮
I don't know why everyone expects people to watch their damn kids. Don't breed if you can't afford to stay home with them or afford childcare.
This isnt rocket science. Why is it so expensive? Because out sourcing childcare should be. Aside from those who really need help, most people complaining really shouldn’t be. How much would you charge to care for/half raise someone else’s child. If a parent owns a 40k plus car, they shouldn’t be bitching. Why isn’t childcare prioritized should be the real question?
10k?? Try 36k a year for one child.
Because the evil powers at be don’t want people to have kids or a family and eventually don’t want humans to exist.
Almost like having a stay at home parent is a better idea. Why work so you can have someone else raise your kids?
Childcare alone is 25k
who else is watching from mortuary 🥺😂😂😂
My cat just returned frim the graveyard..😂😂😂
Or leave em at home and give em a playstation or a computer or something? Kids don't even like daycare and consider it a waste of time
3:30 Yeah, there is some light at the end of the tunnel-either recession in 2026 or civil tension in 2025. The US has the worst medical and social support among all developed countries. And here is the question: What am I paying my taxes for?
I had a child and it cost me about 1-4k. I’m not an idiot who would have a child without someone to watch them for free. Be smart and not an idiot
children are expensive indeed
Here's a novel idea. If you can't afford to raise children, don't have children.
But you know the hope is that they grow up and can go to free school. This country is a joke
Such an American problem, by parents raised me up with a 8000 rupee salary.
😂 Agreed! Definitely an American kind of problem for the African that I am. Family is everything! But from what I have seen since living here, Americans really only care for immediate family, Husband, Wife, Kids. My aunties, uncles, grandparents, and the community raised me!! Family life in America was one of my cultural shocks.
Bulshit ! Go for more sustainable methods. This is fully subjective. Anyway government has to more and that i understood. But then again parents have to sacrifices also and be smart.
Why pay someone else to raise your kids?
Because neolib capitalism forces both parents to work
Can't afford not to, I make more money than my husband. Also, as someone who used to work in childcare for 5 years... I did not "raise" those children. Their parents were still the most important adults in their lives. This is such a damaging viewpoint. It takes a village, always has.
You mean divorced men paying childsupport?
The problem is that general expectation in 21st century's society that is its part-time job with government taking half of responsibilities. But its not, its a full-time job still. And its unpaid.
The question regarding "why someone else have to raise your kids" has exactly same answer as "why have kids at all" - because humans want all the goods with minimal amount of bads, and still not die on the street without having money in the pocket.
I've been a nanny for 20 years. I don't raise other people's children. I offer support for the entire family AND I am considered a member of the family. Raising children is a team effort. Every family needs childcare at some point.
😢
Hay boleh bergabung
When was it ever affordable though.
Just a reminder public school is not free, you just pay for it in a different way. Oh and by the way because they also have to pay for your so-called free school.
Greed. It’s human greed. Just like all the other problems in the world.
Gimme all the babies - M.jackson.
Have had a loving partner for over 18 years and neither of us want kids, we definitely considered it at different points but it’s just not the path we want. We have seen too many of our family and friends struggle and suffer then eventually dissolves in marriages/relationships. But you wanna have a litter of kids anyway? Go right ahead. But don’t go crying about it later.
Call grandma😂
Just don't have kids .3.
😮😮😮
"Free public schools"🤣 My property taxes have almost tripled in ten years because of school taxes. Nothing is free.
My wife and I managed to raise 3 kids and never paid for daycare. She stayed home with the kids and I worked 60+ hours a week to pay the bills. Once the kids were in school all day we both worked and we live very comfortably now. Maybe better life choices, budgeting and work ethic would make it easier for most people.
Yeah go ahead and tell us what your salary was while raising 3 kids and your wife stayed home….that sort of life used to be doable.
"better life choices"...?🙄 you sound like a privileged prick. there are college-educated married couples with careers that STILL struggle to pay for childcare costs and housing. People's life choices, budgeting or work ethic is NOT the problem.
$18/hr and an insane amount of overtime. I was willing to die working to keep my family happy. It was only about 10 years ago. Even then most couldn't live on one wage but most people buried themselves in debt. I had no debt aside from a house payment. We had paid cash for our vehicles and didn't touch credit cards. It was extremely difficult but we made it work.@@heatherhopper4786
@@heatherhopper4786 $18 an hour and it wasn't that long ago. Work hard and don't accumulate a ton of debt. Of course a lot depends on the state you live in. States like California and New York run there citizens in the ground with absurd taxes and cost of living. I live in Utah and things are definitely not cheap. I had a longer reply but for some reason it got deleted.
Funny how "childcare" has never been an issue in the past, because you know... you have a spouse and extended family members?
Once you ask for labor, well, of course it's going to be expensive.
It's basically the difference between driving your car to a car shop to get tires replaced, and simply changing them yourself.
forced minimum wage kills jobs. Minim wage goes up, all goods and service goes up and all of a sudden some jobs are being priced out of the market.
You might make low skills jobs more "living wage" but youre forcing employers to hire less people, so now less of those jobs are available while everything in the market goes up in price.
🎉🎉
This didnt tell me shit.
2:55
That is the way it is supposed to be for responsible people. Can't afford it, can't afford it. Financially, it really doesn't matter if it is a BMW or a baby.
Go go AI and robot. Make things cheaper and affordable. Let the current society culture destroy itself and make a new culture
Naaaah all these can be stabilized as long as the wife does her job staying home cooking cleaning and taking care of the children and let the man do the job of providing income for the family...back to 18th century basics Watson!
If most people in society does this then it might work otherwise those households with one income would on average be a lot poorer then others
Just look after your own kids
Its almost like we should have mothers raise their children instead of paying minimum wage workers to
Crazy that even Childcare is becoming a luxury. Also, Im just saying, some people are against Ab-rtion when THIS is the "alternative". Childcare just isnt affordable, and kids would be born in poverty, have a terrible life & some might not even make it to 5.
There’s lots of alternatives….wtf
Yet people have more and more kids. Then expect multiple men to pay for the child. Lets not forget they try and make the government pay for the child.
Or just have a stay-at-home mom?
you mean a servant?
Why do she call Football socker?
Soccer is American imperial term for Football
only suckers calls it socker
Because kids suck....
Cybertruck
This!
Cybersoccermomvan ?
Watching videos like these. I an afraid that 1929 Great Depression might repeat itself. They say history repeat itself, pandemic did.
I think it already did even before the pandemic. It’s just slowly developing into one but then pandemic came to speed it up even ridiculously quicker than ever. Things might collapse faster at this point and I’m afraid that many young ones like me wouldn’t be able to get a job and a house on time for it since everything has become insanely expensive so far.
This problem only exists in America. Sorry.
Not true.
World Economic Forum wants to decrease the population on earth to 500 000 000. Increase costs and expenses to rise a child is one way to achieve the goal. 😮
Simple solution, don’t have a kid!!
what about your retirement?
@@zoenagy9458 What about it? Or are you telling me you get kids to secure your own retirement!? I thought got kids out of love!