How Much It Actually Costs To Raise Kids In The U.S.

Summary

The video script discusses the soaring costs of raising children in the US, with daycare expenses often exceeding college tuition. It highlights the financial struggles faced by American families, including the middle class, and the inadequacy of current policies to support them. The script calls for comprehensive policies, such as subsidized childcare and paid family leave, to alleviate the burden and argues that investing in children benefits society and the economy at large.

Takeaways

• 💰 The cost of raising a child in the US is significantly high, with daycare expenses sometimes exceeding college tuition costs.
• 🏢 The free market has failed to provide affordable child care, making it a sector in need of policy intervention.
• 👶 Daycare costs are a major burden for families, especially in areas like the Bay Area, where they can equal or exceed rent payments.
• 👪 Many American families, including middle-class ones, are struggling financially and have stopped saving due to high child care costs.
• 🤔 The lack of comprehensive policies in the US has led to a reliance on piecemeal programs to support families.
• 🇺🇸 The US has been historically reluctant to implement family policies, which has contributed to the high cost of raising children.
• 💼 The social safety net needs improvement, and reducing the cost of raising children is beneficial both morally and economically.
• 📈 Child care costs have risen faster than inflation, indicating a growing financial strain on families.
• 👩‍👧‍👦 The Child Tax Credit has been an effective policy in reducing the tax burden on families and alleviating child poverty, but it has its limitations.
• 🌐 The US is unique among OECD countries for not having a federal paid leave program, leaving many families without support during critical times.
• 👶🏼👧🏼 Subsidized child care and paid family leave are advocated by experts as key policies to support families and improve child care affordability.

Q & A

What is the primary concern regarding raising a child in the US according to the transcript?

The primary concern is the high cost of raising a child in the US, which is even more expensive than expected, and the lack of comprehensive policies to support families financially.

Why is child care considered more expensive than higher education in some parts of the US?

The transcript mentions that sending an infant to daycare can be more expensive than in-state public tuition for college, highlighting the high cost of child care compared to higher education.

How did the speaker's personal experience with child care costs affect their financial situation?

The speaker's personal experience with child care costs led to living paycheck to paycheck, stopping savings altogether, and struggling to pay for everyday expenses including rent and child care.

What is the impact of the high cost of raising children on American families according to the transcript?

The high cost of raising children affects families across the economic spectrum, with more than 12.5 million children living in poverty and even middle-class families struggling to pay for everyday expenses.

What was the average family's expenditure on child care according to the September 2021 Treasury Department report?

The report indicated that the average family with at least one child under the age of five spends around 13% of the family's income on child care.

How does the cost of child care compare to other household expenses?

The cost of child care is more than what the average household spends on groceries and is nearly double what the government considers affordable for low-income families.

What was the estimated cost to raise a child from birth through age 17 according to the 2015 Department of Agriculture report?

The 2015 report estimated that for a middle-income household with two parents and two children, it would cost more than $233,600 to raise a child, which translates to almost $286,000 in 2022 with inflation.

How did the COVID-19 pandemic affect child care costs and family expenses?

The pandemic exacerbated the situation, with child care centers and school closures forcing parents to pay for child care in unprecedented ways, and child care prices outpacing annual inflation.

What is the Child Tax Credit and how was it expanded during the pandemic?

The Child Tax Credit allows parents to deduct a certain amount from their taxes at the end of each year, depending on factors like household income and the age of the children. It was temporarily expanded during the pandemic to provide a higher credit amount and monthly payments.

What are the policy recommendations mentioned in the transcript to help families with child care costs?

The transcript mentions subsidized child care, paid family leave, and an expanded Child Tax Credit as policy recommendations to help alleviate the financial burden on families.

What was the Build Back Better infrastructure bill proposed by President Biden and how did it relate to family support?

The Build Back Better infrastructure bill proposed by President Biden aimed to address family support policies at the federal level, including an expanded Child Tax Credit, a near-universal child care program, and a paid leave program, but faced opposition from key Democrats.