Tags: child | care | costs | inflation

Child Care Costs 76% Worse in Just 3 Years

Child Care Costs 76% Worse in Just 3 Years

George Mentz By Tuesday, 30 April 2024 03:18 PM EDT Current | Bio | Archive

The Diaper Hyper Inflation Dilemma

Diapers are a fundamental necessity for families, infants and toddlers, but their cost has surged with hyperinflation and supply chain problems over the past 3 years. While the Consumer Price Index (CPI) does not specifically track diaper costs, data from the government reveals that the price of diapers has increased by over 100% since 2019. [i]

For low-income families, this financial burden is particularly severe. [ii] Diaper costs were about $16.54 in 2020 and the same box would cost you about $22-25 dollars today plus city taxes.: [iii] This is a 34% minimum increase in diaper costs in about 3 years. [iv] Shockingly, 47% of American families struggled to afford diapers in 2023.

· Impact on Working Mothers: Working mothers often face the dual challenge of maintaining consistent childcare while holding down a job. When diaper supplies are low or overpriced, it adds stress and difficulty to their daily lives. The risk of not being able to diaper children appropriately can also lead to concerns about being reported as negligent, potentially triggering involvement with child welfare systems.

· Disproportionate Effect on Minorities: Children of color are overrepresented among families struggling to pay bills. [v] The rising infant costs disproportionately impact these communities, exacerbating economic disparities.

· With diaper prices and baby food costs approaching Third Word Hyper Inflation Levels, working families are trying to survive the worst inflation and child care expenses in 75 years.

Baby Food Prices Hurting Working Families Data Says

Baby food, which includes formula, juice, fruits, vegetables, cereals, meats, and snacks designed for newborns, infants, and toddlers, has also experienced massive price inflation. The CPI data indicates that since 2020, price changes have been more volatile, including double-digit increases almost each year since 2020 . [vi] Baby food and formula prices rose 8.7% from Jan. 2023 to Jan. 2024. The BlS baby food index costs show that the prices have become worse by a blistering 29% percent from (165 to 213) in the last 3 years. [vii]

The Baby Food Affordability Crisis – Costs up 40% in 3 years as Working Mothers’ Struggle : The rising cost of baby food puts additional strain on working mothers. Balancing work responsibilities with ensuring nutritious meals are available for their children becomes increasingly challenging when prices surge. Sadly, inflation is worse now than ever with baby food costs at record highs according to the US Government. [viii] Incredibly, research shows that 76% of the poorest working families that receive free infant services are working one to three jobs. [ix] [x]

Escalating Child Care Costs

Child care costs have surged significantly, impacting families across the socioeconomic spectrum. [xi] [xii] This trend disproportionately affects working mothers, especially those from minority backgrounds. Further, many government subsidized care facilities are overfull where kids just can’t get accepted anymore at military bases hurting both civilian and military families. [xiii] While food for child care is up 300% in some cases, the costs are brutal for single moms. Care.com is also reporting parents across the nation paid at least 13% more for child care than just a few months ago. [xiv] This is the same type of horrific hyperinflation suffered in places like Nigeria, Venezuela, and war torn Syria. [xv]

In 2020, according to CNBC, the average price of a year of child care stood at $10,174. [xvi] In 2023, a staggering 59% of parents surveyed plan to spend more than $18,000 overall on child care in 2023. That is a 76% higher cost burden for mothers and families in just 3 years. The percent change from $10,174 to $18,000 is approximately 76.92% or higher this year as compared to 2021. [xvii]

· Working Mothers’ Dilemma: As child care costs soar, working mothers face difficult choices. They must weigh the financial burden against the need for quality care for their children. For low-income families, this can be particularly distressing. Even new immigrants in big cities need to charge $20-30 dollars an hour or more to babysit as rent and food prices are so high for the working poor which leaves families with virtually nothing leftover for things like medicine or clothing.

· Minority Communities: The rising cost of child care disproportionately affects minority communities including Asian, Hispanic, African Americans, and dozens of other minority ethnicities. Access to affordable child care is crucial for working parents, and when costs escalate, it exacerbates existing inequalities.

In summary, the escalating costs of diapers, baby food, and child care create significant challenges for working mothers, especially those from minority backgrounds. Policymakers have failed and communities must address these issues to ensure equitable access to essential goods and services for all families. [xviii]

In conclusion, the alarming escalation in the costs of diapers, baby food, and child care over the past few years has placed an untenable burden on families, hitting hardest those in urban areas, women, and minorities.
These exorbitant increases reflect a dire economic landscape where essential products and services have become increasingly unaffordable, exacerbating inequalities and placing immense pressure on working mothers who are already juggling employment and familial responsibilities.

The disproportionate impact on minority communities highlights a broader systemic issue that demands urgent attention from policymakers and community leaders. As we move forward, it is crucial that targeted interventions are developed to lower energy costs, lower logistical costs, lower city taxes, and reduce shipping regulations to mitigate these financial strains and promote equitable access to necessary care and nutrition for all children, ensuring that no family is left behind in the face of such overwhelming economic challenges.


Commissioner George Mentz JD MBA CILS CWM® is the first in the USA to rank as a Top 50 Influencer & Thought Leader in: Management, PM, HR, FinTech, Wealth Management, and B2B according to Onalytica.com and Thinkers360.com. George Mentz JD MBA CILS is a CWM Chartered Wealth Manager ®, global speaker - educator, tax-economist, international lawyer and CEO of the GAFM Global Academy of Finance & Management ®. The GAFM is a EU accredited graduate body that trains and certifies professionals in 150+ nations under standards of the: US Dept of Education, ACBSP, ISO 21001, ISO 991, ISO 29993, QAHE, ECLBS, and ISO 29990 standards. Mentz is also an award winning author and award winning graduate law professor of wealth management of one of the top 30 ranked law schools in the USA.

[i] Parents struggle to afford basic baby needs as diaper prices continue to rise | Fox Business

[ii] Why Are Diaper Prices Up 184 Percent? Two Corporations Are Preying On Parents (perfectunion.us)

[iii] The Crisis Everyday Americans Are Facing | Stansberry Research

[iv] Looking toward November, Biden targets ‘shrinkflation’ in State of the Union speech • North Dakota Monitor

[v] Diaper Dilemma: Low-Income Families Face High Costs and Limited Supplies of an Essential Good – INSTITUTE FOR RESEARCH ON POVERTY – UW–Madison (wisc.edu)

[vi] Diaper Dilemma: Low-Income Families Face High Costs and Limited Supplies of an Essential Good – INSTITUTE FOR RESEARCH ON POVERTY – UW–Madison (wisc.edu)

[vii] Baby Food Prices Jump by Most on Record to All-Time High | Financial Post

[viii] Baby food marks inflation high (spectrumlocalnews.com)

[ix] Baby food marks inflation high (spectrumlocalnews.com)

[x] Bloomberg Graph: -1x-1.png (1200×675) (bwbx.io)

[xi] Child care prices, inflation, and the end of federal pandemic-era aid in five charts - Equitable Growth

[xii] How Much Does Child Care Cost? 2024 Cost of Care Survey

[xiii] Child care cost on the rise in Colorado, parents worried about growing costs and limited space (kktv.com)

[xiv] How Much Does Child Care Cost? 2024 Cost of Care Survey

[xv] Opinion | Nothing Can Prepare You for Life With Hyperinflation - The New York Times (nytimes.com)

[xvi] Average cost of child care is now more than $10,000 per year (cnbc.com)

[xvii] This is how much child care costs in 2023 - Care.com Resources

[xviii] The Infant Formula Crisis Could Hit Black Families Hardest (theroot.com)

© 2024 Newsmax Finance. All rights reserved.

Infant food and diaper costs have skyrocketed since 2021. Cities, unions, women and minorities hit the hardest.
child, care, costs, inflation
Tuesday, 30 April 2024 03:18 PM
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