Breaking Down the Impact of Childcare Costs For Returning To Work

When most parents leave the workforce to start their families, they expect that they will eventually be able to return to their former job. In reality, many don't, primarily because of childcare costs. Childcare is incredibly expensive, with the cost ranging from around seventeen hundred to a few thousand dollars per month depending on the location. Childcare can be a barrier to both moms and dads, who must consider their income to cost ratio when deciding whether it's worth their time and money to go back to work.

Many parents, especially mothers, experience the “motherhood penalty” when returning to the workforce. Companies either don’t hire them because of potential time off due to kids, or they deselect them after they have kids because they believe they may not have the same level of commitment in their jobs as childless counterparts. It gives women an additional financial burden to worry about - often meaning they have to find a high paying job to make up for the expensive costs of childcare.

It’s also becoming increasingly difficult to find reliable and compatible childcare. The demand for childcare is exceeding the availability, making a spot more prized that the number one spot at Harvard. More and more daycares are popping up, but they are extremely expensive and have limited spots. Nannies and babysitting services are also available, but some parents are unable to find somebody who meets their value system or fits into their schedule.

Many ask why the government doesn’t step in. Federal funding is small and only helpful for lower-income families who qualify for subsidies. Rates for childcare can vary wildly state to state, depending on the regulations and the general attitude towards it. For instance, in some states the cost to parents is subsidized by the state, whereas in others it’s largely private.

It’s definitely a quandary for many parents, particularly mothers, who want to go back to work. They must weigh up the cost of childcare against their possible salary and decide what makes the most economic sense. Some parents turn to stay-at-home parenting, while others try to find some sort of middle ground such as adjusting their hours so they can have somebody look over the child while still continuing to earn an income.

It’s a tricky situation, and one that can have a huge impact on the future financial wellbeing of many families. High childcare costs are a major factor in why many parents don’t return to work and why gender wage gaps can exist. It has the potential to change society entirely - with fewer qualified participants in the workforce, and a larger gender gap as more women are unable to join or stay in the job market. Until then, parents will feel this struggle of having to choose between a career and staying home with their children.