Childcare Costs Soar, Families Need $400K+ to Afford Care

New study finds full-time care for two kids can average over $28,000 per year

Mar. 3, 2026 at 4:39am

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A new study from LendingTree finds that a family may need to earn more than $400,000 a year to comfortably afford care for two kids under the federal benchmark that says child care shouldn't exceed 7% of income. Nationwide, full-time care for two children can average more than $28,000 a year, putting a significant financial strain on families.

Why it matters

Childcare costs have become a major economic burden for many families, with the average cost of full-time care for two children exceeding $28,000 per year. This makes it increasingly difficult for parents, especially those in lower and middle-income brackets, to afford quality childcare and maintain employment.

The details

The study from LendingTree found that the federal benchmark for affordable childcare, which states it should not exceed 7% of a family's income, would require a household to earn over $400,000 annually to comfortably afford care for two children. This highlights the growing gap between childcare costs and family incomes, putting significant financial strain on parents.

  • The LendingTree study was released on February 28, 2026.

The players

LendingTree

An online lending marketplace that provides consumers with information and tools to compare various loan options.

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What’s next

Families facing high childcare costs may want to explore options like the Child and Dependent Care Tax Credit, Dependent Care FSAs, and nanny sharing programs to help offset the financial burden.

The takeaway

The skyrocketing costs of childcare have put a significant strain on many families, highlighting the need for more affordable and accessible childcare solutions to support working parents and ensure children have access to quality care.