NC families need six-figure income to afford child care for two children, study finds

(WWAY) — A new LendingTree study highlights the growing financial strain child care costs are placing on families across North Carolina and the nation.

Researchers found that families in North Carolina would need to earn about $325,014 a year to comfortably afford child care for two children, using the federal benchmark that child care is considered “affordable” when it costs no more than 7% of household income.

According to the report, the average annual cost of child care for two children in North Carolina is $22,751. To keep those costs within the government’s affordability threshold, families would need to make 147.1% more than the state’s average household income for families with two children, which is $131,515.

Nationwide, LendingTree found families would need to earn an average of $402,708 annually to comfortably afford child care for two children. The study estimates full-time, center-based care for an infant and a 4-year-old costs about $28,190 per year across the U.S.

The report also found disparities by race. American Indian and Black families were furthest from meeting the affordability benchmark, with average household incomes of $94,094 and $98,019, respectively. Researchers said those families would need to earn more than three times their current income levels to keep child care costs within the 7% threshold.

Matt Schulz, LendingTree’s chief consumer finance analyst, said child care expenses have become overwhelming for many families.

“Most parents could tell you that child care costs are astronomical these days and can cause a major financial burden, even for high-income families,” Schulz said. “The unfortunate reality is that these costs are so high that they’re forcing families to make major sacrifices to handle them.”