How to Get Child Care Assistance to Cover the Cost of Daycare
The journey of raising a child includes countless moments of joy, but it also comes with its fair share of challenges. One of the greatest obstacles facing parents today is the high cost of child care, which has increased significantly over the last few decades. According to the nonprofit Child Care Aware of America, the national average cost of daycare for two children has overtaken the cost of housing in all 50 US states—beginning parents’ long uphill struggle towards significant future expenses like paying for college.
But there is always hope. If you’re struggling to pay for child care services, daycare costs, healthcare or housing—there are many grants, assistance programmes and alternative fundraising methods that can help you to cover the costs of raising a child.
How much does child care cost?
Below, we’ve outlined the major costs faced by couples and single parents when raising a child. Note that these costs do not include clothing, food, transportation and other miscellaneous expenses.
Daycare costs
Despite the government’s recommendation that child care and daycare costs shouldn’t surpass 7% of a family’s total income, the average US family currently pays closer to 10%, a figure which only worsens when it comes to single parents.
Data published by the US Department of Labour suggests that daycare costs range anywhere from $5,357 to $15,417 per child on an annual basis—meaning the average figure sits somewhere around $10,400. Your location, the age of your child and the type of daycare required all factor into the final price you’ll pay for child care services.
Housing costs
Housing continues to be the largest cost of raising a child, and the single largest expense for the average American family. To compound the problem, the rise of housing prices has been outpacing the average rise of income across the majority of the United States for the past twenty years—putting huge pressure on parents to try and keep up.
Recent reports from the US Department of Commerce show that the median parent of a child under thirteen years old is currently paying $1,700 per month on their rent or mortgage. This means that child care costs equate to about 51% of average housing costs—showcasing the significant added financial pressure experienced by parents.
Healthcare costs
Aside from childbirth costs—which currently represent an average of $18,865 —providing continued healthcare for children can be a serious financial struggle for many. Chronic health issues, dental work, and other conditions not covered by insurance can instantly put monthly family budgets in the red. On average, healthcare expenses for 0-18 year olds can range from $2,283 to $3,300 depending on the sex of your child.
Education costs
While public schools are far cheaper than private schools, quality public education can still cost parents a pretty penny. Backpacks, extracurricular activities, and the growing role of technology in the classroom all contribute to rising education costs. Parents of children in elementary school through high school budgeted an average of $890 for back to school costs alone in 2023.
If you’d like to send your child to private school, expect to pay anywhere between $11,915 to $16,408 for tuition each year, depending on your state and the age of your child.
How to find child care assistance and get help covering daycare costs
Raising children comes with many memorable moments of joy, but rising costs mean that it truly does take a village to raise them. With the average price of daycare continuing to climb and more than 70,000 child care providers in danger of closing, the struggle of finding child care assistance in today’s world can often feel overwhelming.
Fortunately, there are many supports available to parents who are struggling to afford child care and daycare costs. From government grants to nonprofit payments, affordable daycare services to crowdfunding—we’ve broken down some of the most effective ways to seek financial help with raising a child.
1. Government child care assistance
- Insure Kids Now offers affordable health insurance to children and teens through Medicaid and CHIP, so they can receive routine check-ups, prescriptions, emergency visits, dental care, and more. Children up to the age of 19 whose annual family income is below $80,000 are eligible for coverage.
- Head Start Programs provide vulnerable children up to age five with free early development and education services to help prepare them for success in school. Eligibility is based on the federal government’s low-income guidelines. Depending on your location, some Head Start programs even offer prenatal services to pregnant women.
- The Child and Dependent Care Tax Credit is offered to those who have paid for child care services for dependents under the age of 13. Eligibility is based on whether you were working or seeking work when paying for these services, while the value of the credit is based on your income and the amount spent on child care services. While you won’t receive the funds immediately, this tax credit may help save you money during the following year.
2. Government daycare assistance
The government knows that plenty of Americans need help covering daycare costs. Below are some of the most effective government programs available today, along with useful eligibility guidelines and instructions on how to apply.
- ChildCare.gov lists local state resources that parents can access in their community and provides details on state-specific daycare assistance programs. Simply enter your current US state or territory of residence, and you will be directed to a range of affordable daycare and afterschool programs for low-income families.
- The Child Care and Development Fund offers financial daycare assistance to eligible families with children under the age of 13, and minors up to age 19 who are incapable of self-care. Their child care service locator tool allows you to track down resources available in your state.
- The Department of Defense partners with Militarychildcare.com to provide daycare assistance for qualifying members of the military and their families. Fees are calculated based on your total family income, and apply to all children who attend the programme regularly.
3. Nonprofit daycare organizations
The two organizations listed below—each with hundreds of locations nationwide—provide affordable, quality daycare and after-school services for children and teens.
- The YMCA offers a range of daycare options for infants and preschoolers. The organization also has several academic and activity-based after school programs for children in kindergarten through middle school.
- The Boys & Girls Clubs of America runs a range of educational, advocacy and daycare programs that provide children and teens with the tools needed to forge a successful future. Their programs are available in most cities throughout the US, as well as in US military stations around the world.
4. Daycare assistance grants
If you are struggling to meet the eligibility requirements for daycare services and child care assistance programs, there’s always the option of seeking out grants and scholarships.
Soroptomist is a volunteer organization that promotes economic empowerment by offering opportunities and resources to girls and women. Through their Live Your Dream Awards program, women can apply for one of 1,700 cash grants each year that can be used to pursue higher education, including covering daycare costs, basic essentials, transportation, tuition, and course materials.
While they don’t offer direct grants to cover daycare costs, Child Care Aware of America manages various events and resources focused around child care affordability. You can use their Child Care Resource & Referral Agency (CCR&R) search tool to find organizations in your area that can offer support.
5. Employer-sponsored child care assistance
As the financial burden of child care costs continues to worsen, employers across the country are realizing the importance of offering child care benefits to their employees. In fact, more than half of US employers plan to prioritize child care benefits to attract and retain top talent. Providing child care benefits can increase workplace productivity by allowing employees to focus on their work, comfortable in the fact that their children are being taken care of.
While not currently a legal requirement, child care benefits will be included in your benefits package if provided by your employer. This could involve full reimbursement of daycare costs and other child care expenses, or a monthly stipend to help cover a proportion of your expenses. Just ask your HR department for more details on how your employer can help.
6. Crowdfunding
Building an emergency fund for your children isn’t a possibility for everyone, so it can be tough to recover if a personal financial crisis strikes. Expensive child care costs can become even more daunting when disaster strikes—but crowdfunding can help. Every day, countless people around the world start family fundraisers and daycare fundraisers to help offset child care costs, with the aim of giving their children the best possible chance at a bright and promising future.
With modern crowdfunding platforms like GoFundMe, there are no lengthy application processes, eligibility requirements or long waiting periods to receive your funds. A child care fundraiser is easy to set up, and allows you to quickly raise the money you need—which is especially important in emergency situations when instant support is required.
How to fundraise for child care assistance and daycare costs
Every day, thousands of parents turn to crowdfunding to help offset overwhelming child care costs. By starting an online fundraiser, you can begin raising money in a matter of minutes. And with GoFundMe’s fundraising platform, you get to keep more of the funds you raise—which means more of your donations go towards covering daycare costs, tuition, and other child care expenses.
Read our guide to How GoFundMe works to get a better understanding of the platform, and to receive straight-forward answers to all your fundraising questions.
5 tips for a successful child care fundraiser
Before you get started on your child care fundraiser, it’s important to get an idea of how much money you’re hoping to raise. Calculate your child care costs to determine what a necessary and achievable fundraising goal might look like. Once you’ve set a target, use the following fundraising tips to get your child care fundraiser off the ground and start alleviating daycare costs.
- A compelling fundraiser story is key to success. From crafting a powerful fundraiser title to telling your story in a clear, honest way—spending time on your personal story will give your child care fundraiser a solid foundation for success.
- Another top fundraising tip is to include both image and video content on your fundraiser page. Using the right images and videos will help to form an emotional connection with your supporters, inspiring even more donations and social sharing over time.
- Speaking of being social, make sure to promote your fundraiser on social media and consider creating a Facebook account for your fundraiser. This will enable you to ask for donations from a far wider audience, and has the potential to massively increase visibility and donations.
- Invite your child to help fundraise. Not only will this empower them to take action, but it may even inspire them to start their own fundraiser in the future for a cause that’s meaningful to them.
- Once you’ve done all of the above, take your child care fundraiser ideas to the next level by setting a clear fundraising goal, disclosing your chosen daycare provider, and posting regular fundraiser updates to keep your donors in the loop.
Real people using crowdfunding for childcare costs
When these parents fell on hard times and needed child care assistance, they launched fundraisers through GoFundMe to find financial relief.
Helping Abbey’s Family Thrive
When Abbey’s partner passed away unexpectedly, her world was turned upside down. Abbey had to take a leave from work to care for her four children, all under the age of 13. Her friend came to her aid and started a fundraiser to help Abbey pay for food, rent, childcare costs, and other basic necessities, raising over $10,500.
Help a Struggling Parent Secure Childcare
Brittney White started this fundraiser to get help with childcare after the father of their two boys fell ill. The challenges of juggling college classes and childcare, while also trying to find a new job, meant that Brittney needed help from the community, which responded with over $5,000 and counting in donations.
Please support Shab and Darius during this challenging time
On July 17, 2024, Christian Yunis, a mathematics teacher from California, lost his battle with brain cancer. Christian’s sister, Maria, along with a team of fundraisers, set up a GoFundMe in support of his wife, Shab, and his son, Darius. The fundraiser received over $85,000 in donations in just a few days, which would be used to help Shab cover funeral expenses, rent, and childcare.
Start your child care assistance fundraiser today.
From buying diapers to covering daycare costs, the expenses that come with raising a child can be a financial burden for parents everywhere. But no matter your income or your situation, no one should have to go without child care assistance—and there are many options for finding financial relief. Create a GoFundMe to start your own child care fundraiser, and find the support and hope that your family deserves today.