2019 NSECE Snapshot: Child Care Cost Burden for U.S. Households with Children Under Age 5

Publication Date: February 4, 2022
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  • Published: 2022

Introduction

Research Questions

  1. For U.S. households with young children, how do CCEE cost burden levels vary?
  2. For low-income households with young children, how do CCEE cost burden levels vary? And how do patterns for low-income households compare to patterns for higher income households?
  3. How prevalent are high CCEE cost burden levels where households spend over 10%, or over 20% of their incomes on CCEE? Which household income groups are most likely to incur high cost burdens?

In 2019, over 15 million U.S. households with young children used non-parental child care and early education (CCEE) on a regular basis, and for many families affordability of CCEE is a key consideration. One important indicator of affordability is a household’s child care and early education cost burden—the percentage of income that parents pay as out-of-pocket costs for regular CCEE. 

This snapshot presents findings from the 2019 National Survey of Early Care and Education (NSECE) about the CCEE cost burdens of U.S. households with young children. Using nationally representative data from the 2019 NSECE Household Survey, it explores the range of cost burden levels U.S. households with young children experienced in 2019, and examines how CCEE cost burdens varied by household income levels.

Purpose

The purpose of this snapshot is to release CCEE cost burden findings for households with young children using the most recent national data available from the 2019 NSECE Household Survey.  Affordability issues can affect parents’ choices, decision-making, and ability to access high quality CCEE for their children. Updated information about households’ CCEE cost burdens can inform policies that aim to facilitate access to high quality CCEE for families most affected by affordability challenges.

Key Findings and Highlights

Overall, the data show that CCEE cost burdens range substantially for households with different income levels. Also, while a majority of low-income households were found to have no out-of-pocket CCEE costs, low-income households that do pay for CCEE experience widely varying cost burdens, with many spending over 10% of their incomes on CCEE. This variability signals that the factors driving households’ CCEE costs may not be the same for all low-income households, which may be contributing to very different cost burden levels among economically insecure households with young children in the U.S.

Key findings include:

  • Nearly half (48%) of U.S. households with young children using regular CCEE had zero out-of-pocket costs.
  • For households that do pay out-of-pocket for CCEE, 26% incurred cost burdens over 10%.
  • While the distribution of cost burdens differs by income level, there are households in all income levels spending over 10% of their income on CCEE.
  • Households below the poverty line (below 100% of the federal poverty level, “FPL”) are the most likely to have no out-of-pocket CCEE expenses, and also face high cost burdens when paying for CCEE.
  • Households with incomes just above the poverty line (100-200% FPL) are the most likely to face cost burdens over 20%. 

Methods

This snapshot uses detailed cost data from the 2019 NSECE Household Survey to describe CCEE cost burdens for households that used regular CCEE and had at least 1 child under age 5 (0 to 59 months). Cost burdens are compared across 4 income levels (below 100% of FPL, 100-200% FPL, 200-300% FPL, and over 300% FPL). Cost burdens include all CCEE expenses of the household for any child under age 13 (not just those for children under age 5). For example, for a household with a 3- and a 6-year-old, the costs for both children were added to calculate CCEE cost burden. This NSECE snapshot uses data for 2,835 households from the 2019 NSECE Household Survey with at least 1 child using regular CCEE, and with at least 1 child under age 5.

Citation

National Survey of Early Care and Education Project Team (2022):  Erin Hardy, Ji Eun Park. 2019 NSECE Snapshot: Child Care Cost Burden in U.S. Households with Children Under Age 5. OPRE Report No. 2022-05, Washington DC: Office of Planning, Research and Evaluation, Administration for Children and Families, U.S. Department of Health and Human Services.

Glossary

Regular Child Care and Early Education:
Non-parental child care and early education (CCEE) occurring at least 5 hours/week.
Individual Provider:
Paid or unpaid individuals (e.g. relatives, friends, family child care providers) that provide CCEE to 1 or more children in a home-based setting.
Organizational Provider:
A center or other organization (e.g. after-school program, church) that provides CCEE in a non-residential setting.
Child Care and Early Education Cost Burden:
Percent of household income spent on regular CCEE for all children under age 13.