Childcare Costs More Than College?

[taiwan_girl]

I remember listening to an article on the radio that talked about how the economics of day care do not follow normal economics and the reasons why this was the case. I will see if I can find it. It was quite interesting.

https://www.npr.org/2023/02/02/1153931108/day-care-market-expensive-child-care-waitlists

EDIT to add verbal article (23 minute listen):

Anyone who has tried shopping for day care knows that it is tough out there.

For one, it is hard even to get your hands on information about costs, either online or over the phone – day cares will often only share their prices after you have taken a tour of their facilities. Even once you find a place you like, many day cares have waitlists stretching 6 months, 9 months, a year.

Waitlists are a classic economic sign that something isn't right, that prices are too low. But ask any parent and they will tell you that prices for day cares are actually too high.

According to a recent report from the U.S. Treasury, more than 60% of families can't afford the full cost of high quality day care. Meanwhile, day care owners can barely afford to stay open. No one is happy.

On today's show, we get into the very weird, very broken market for day care. We will try to understand how this market can simultaneously strain parents' budgets and underpay its workers. And we will look at a few possible solutions.

[Axtremus]

@Jolly said in Childcare Costs More Than College?:

What should be done?

1. More “working from home” — encourage and incentivize more policies that make it easier for working adults to take care of children.
2. More childcare subsidies — if we think children are the future, invest and appropriate funds like we mean it.
3. More technology, more automation — think all sorts of monitors and AI to keep artificial eyes on more children that can alert the human caregivers of events that require human intervention, more automation of simpler functions like preparing formulas or warming up refrigerated milk, and later down the road, robonannies — things that increase the productivity of the human caregivers.

One can also say “fewer children” to attempt to lower the cost by lowering demand, but that will worsen the demographic makeup in the future as we already have below-replacement fertility rates; so “fewer children” should not be recommended as a matter of public policy.

[xenon]

Children are super hard if you have no help outside the nuclear family.

Doubly so if both parents work full time on top of that. (My wife’s had her career on hold for years now)

Putting it all on the parents, if you’re lucky enough to have 2 of them, is a relatively new social invention.

[jon-nyc]

My nanny cost me 35k a year more or less.

That would have paid for college at most places in the 2009-13 timeframe.

[Jolly]

Actually, some pretty darn good places. I know that amount would have covered everything at Tulane.

[Aqua Letifer]

@xenon said in Childcare Costs More Than College?:

Children are super hard if you have no help outside the nuclear family.

Doubly so if both parents work full time on top of that. (My wife’s had her career on hold for years now)

Putting it all on the parents, if you’re lucky enough to have 2 of them, is a relatively new social invention.

Yes it is, and that's an accurate insight.

A bit organically, my wife and I have found ourselves in part of an unofficial kind of parent-share program with other parents. For example, I work remotely, but some friends of ours don't, so if there's a delay or early dismissal for school, they can't take their kids to or from. So, it's understood that we can help them do that. They just drop the kids off in the morning, or I pick them up in the afternoon and they hang out with us until the parents come home. In return, they help us out nights and weekends. (For example, I might have to work job 2 and my wife's in class, or on the weekend we try to get away for an afternoon the sake of our sanity.)

There are about 4-5 families involved, and that little bit of shared support has made a massive difference. It's good for the kids, too, I think.

[xenon]

Love that you were able to put that together without extended family. I grew up similarly and often went to aunt/uncles and family friends before and after school. I'm struggling a bit with our kids on this. People tend to be pretty scheduled around us.

Completely agree on it being good for the kids. Different adult personalities, different regimes - tons of important learning.

[jon-nyc]

@Jolly said in Childcare Costs More Than College?:

Actually, some pretty darn good places. I know that amount would have covered everything at Tulane.

Yep. We used to joke about it being round one of college. It lasted 4 years too.

[LuFins Dad]

For the cost of childcare centers, you can actually have a live in Au Pair.

For kids below school age, I suggest checking your local community centers… There are programs at mine with classes of 8 for Finley’s age for around $300 per month Mon-Fri from 9-1…

[89th]

@Axtremus said in Childcare Costs More Than College?:

@Jolly said in Childcare Costs More Than College?:

What should be done?

1. More “working from home” — encourage and incentivize more policies that make it easier for working adults to take care of children.

If I understand you correctly, ummm working from home with young kid(s) is not really possible. Depends on your job of course.

[89th]

@LuFins-Dad said in Childcare Costs More Than College?:

For the cost of childcare centers, you can actually have a live in Au Pair.

For kids below school age, I suggest checking your local community centers… There are programs at mine with classes of 8 for Finley’s age for around $300 per month Mon-Fri from 9-1…

Agree. It’s not exactly daycare but we are putting our 3 year old into a part-week, part-day preschool program. It’s cheap compared to full daycare, and it’s with a church which adds a nice benefit too.