Why Is Daycare So Incredibly Costly While Workers Are Still Underpaid?

Recently, I came across a Twitter thread that posed a thought-provoking question: “Why are daycare costs so high, yet the workers are barely making ends meet?” One Twitter user noted that her parents operate a small in-home daycare, and the disparity between their charges and what she pays in Georgia was striking.

I can relate; when my son was young, the daycare expenses felt astronomical—nearly as much as our mortgage and consuming about half my take-home pay. This isn’t just a personal experience; for many families across the U.S., childcare costs rank as one of their largest expenses, rivaling housing costs. Yet, despite these high fees, many daycare workers earn very little. According to the Center for American Progress, almost 40% of daycare employees rely on public assistance at some point. The facilities themselves often struggle with tight budgets, and anyone interested can explore state-specific cost estimates for early childhood care through an interactive tool provided by the center.

Understanding the Costs

So why is early childhood education so expensive? And why are its workers underpaid?

Interestingly, instead of blaming daycare providers, the Twitter comments highlighted the practical realities of running a daycare. One user pointed out that if daycare workers and parents received equal pay, the worker would earn a quarter of a parent’s income per child, not accounting for additional costs like utilities, supplies, and benefits. Another commenter shared that in many states, a typical staff-to-infant ratio can create significant financial constraints, making it difficult to pay employees adequately when considering overhead costs.

During my own time grappling with the costs of daycare, I quickly realized that while I was paying a hefty sum for my child’s safety and care, the workers who cared for him were not receiving a fair wage, nor was the daycare owner likely profiting significantly.

The math shared in those tweets often overlooks critical expenses like rent, insurance, utilities, and necessary supplies. Most daycare owners aren’t profiting off their services, and their employees are certainly not thriving financially. While there are exceptions—instances of price-gouging or exploitation—these are not the norm.

The Bigger Picture

The bigger issue lies in the systemic lack of support for early childhood education, akin to other essential services like agriculture and infrastructure. To truly value early childhood education, it should be subsidized by public funds. We often emphasize the importance of a solid start for children and praise educators, yet we fail to back these claims with financial commitment.

Quality early childhood education leads to better outcomes for children, impacting their health and self-esteem positively. Parents who can afford daycare can work, access preventative healthcare, and contribute to the economy. Thus, funding early childhood education through taxes isn’t merely an expense; it’s an investment in our collective future.

So, yes, daycare costs are alarmingly high, and daycare workers deserve better compensation. Rather than pointing fingers at the daycare providers, we should be examining our collective willingness to invest in our children’s future. It’s time to ask ourselves and our leaders why we haven’t prioritized this crucial investment and how we can change that.

Summary

In summary, daycare costs are remarkably high while workers remain underpaid due to systemic issues in funding early childhood education. A shift towards public subsidies could help alleviate these costs for families and ensure fair compensation for educators, ultimately benefiting society as a whole.

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Why Is Daycare So Incredibly Costly While Workers Are Still Underpaid?

Understanding the Costs

The Bigger Picture

Further Reading

Summary