Utah spends the 3rd lowest amount of income on childcare in nation: Wallethub

SALT LAKE CITY (ABC4) — Utah’s parents spend some of the smallest amount of their incomes on childcare in the country, according to a recent study from Wallethub.

Wallethub looked at median incomes for married couples and single parents in each state and compared it to the costs of family-based childcare (care based in a private home) and the costs of center-based childcare (care in a more traditional daycare center).

Nationwide, married couples can spend up to 13% of their income on childcare, and single parents can spend up to 51% of their income on childcare.

“Childcare has become less affordable over time,” said Lori Latrice Martin, PhD, Professor and Associate Dean at Louisiana State University. “Childcare costs may exceed what some families pay in rent. The causes for the increase in childcare include the lingering effects of the COVID-19 pandemic, operational costs, limited public funding, and declines in available childcare options.”

Compared to those national averages, childcare in Utah is cheap. In Utah, married couples spend 6.5% of their income on family-based childcare and 7.97% of their income on center-based childcare. For married couples, Utah ranks at 48 on the list, or the 4th smallest amount spent on childcare.

Single parents in Utah rank even better than married couples, at the second lowest amount of their income spent on childcare in the country, or number 50 on the list. However, single parents spend a much greater percentage of their income on childcare than married couples, since there is only one income. Single parents in Utah spend 17.25% on family-based childcare and 21.15% on center-based childcare.

Across married couples and single parents, Utah ranks third for the least amount of money spent on childcare.

New York state has the highest cost of childcare for married couples in the nation, followed by New Mexico and Washington state. New Mexico’s high childcare cost is mainly because the incomes in the state are so low, according to the report. In New York and Washington state, incomes are high, but comparatively, costs are higher too.

Here are the states where childcare is the most expensive for married couples:

1. New York
2. New Mexico
3. Washington
4. Oregon
5. Vermont

Here are the states where childcare is the least expensive for married couples:

1. South Dakota
2. South Carolina
3. Mississippi
4. Utah
5. North Dakota

Interestingly, childcare for single parents in the District of Columbia (Washington D.C.) is the most expensive in the country, but for married couples, it ranks at number 29 on the list.

Here are the states where childcare is the most expensive for single parents:

1. District of Columbia (Washington D.C.)
2. New York
3. Massachusetts
4. Vermont
5. Rhode Island

And here are the states where childcare is the least expensive for single parents:

1. South Dakota
2. Utah
3. Alaska
4. Idaho
5. South Carolina

You can see the rest of the rankings and read about the methodology of the study here.