Study Finds Hoosiers Struggle to Afford Child Care

Lending Tree report shows wide gap between child care costs and average Indiana salaries.

Feb. 3, 2026 at 8:15pm

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A new study by Lending Tree has found a significant discrepancy between the cost of child care in Indiana and the average salaries of Hoosier families. The report shows that Indiana families with two children need to earn 239% more than their current income to comfortably afford child care, ranking the state 9th in the country for the largest gap between earnings and child care affordability.

Why it matters

This issue highlights the financial strain many Indiana families face in accessing affordable child care, which is a critical need for working parents. The problem has been exacerbated by recent state budget cuts to child care assistance programs, leaving more families struggling to cover the high costs.

The details

The study found that the average Indiana household with two children needs to make $122,372 to comfortably afford child care, significantly more than the actual average income. Mothers like Lexie Brewer and Halei Meadows report spending up to a third of their paychecks on child care, forcing them to make difficult financial tradeoffs. Daycare providers like Rosie's Tiny Tots have also been impacted, losing staff and students due to the affordability challenges.

  • The Lending Tree study was published in February 2026.

The players

Lexie Brewer

A mother who works multiple jobs to afford child care, which consumes a third of her paycheck.

Halei Meadows

Another mother who also spends a third of her salary on child care, calling it "pretty devastating."

Sheldon Floyd

The executive director of Rosie's Tiny Tots Daycare Ministry, which has had to get creative to meet parents' needs amid funding cuts.

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What they’re saying

“As balancing child care and being able to afford other aspects again, you just have to make a lot of cuts when you already cut back. It's just like, 'What more can you cut back?'”

— Lexie Brewer, Mother (WTHR)

“It's always been expensive. It's pretty devastating.”

— Halei Meadows, Mother (WTHR)

“Our motto is...'Where love and learning goes hand in hand.' You cannot have learning, you cannot have education unless you have love first.”

— Sheldon Floyd, Executive Director, Rosie's Tiny Tots Daycare Ministry (WTHR)

What’s next

State legislators will likely face continued pressure to address the child care affordability crisis in Indiana, potentially through increased funding for assistance programs or other policy solutions.

The takeaway

This study underscores the significant financial burden of child care for many Indiana families, highlighting the need for more affordable and accessible options to support working parents and ensure children have access to quality early childhood education.