MoneyLion on Childcare — A Huge Hit for Growing Families

The biggest expense experienced by families after the mortgage is the cost of daycare. On average childcare costs to a family with an infant and a four-year old is over $25,000 a year.

That’s before the mortgage or rent, groceries or gas.

In the most expensive states for childcare — Vermont and Minnesota — daycare for two kids can hit 45% of the median household income. MoneyLion says daycare is driving families deeper in debt. Take Colorado for example. It is the most financially stretched state in the union with daycare costing an average of $37,832 per year.

This while these consumers average $155,945 in debt.

Even in the more “affordable” states like Kansas and Iowa, daycare can run 22% to 24% of the median income for a family. People in Mississippi pay an average of $13,119 for the infant and four-year old. Compare that to Massachusetts. That state averages $3,721 per month, or $44,648 a year for childcare.

The difference is $31,529 per year.

The PIA Western Alliance states of Hawaii (3), Alaska (6), California (7), Oregon (8), Washington (9) and Nevada (10) are in the top-10 most expensive states.

1. Colorado

Average consumer debt total: $155,945

Debt to income (DTI) ratio: 1.74

Average annual childcare cost for two children: $37,832

Percent of median household income spent on childcare: 39.63%

2. Massachusetts

3. Hawaii

Average consumer debt total: $148,492

Debt to income ratio: 2.04

Average annual childcare cost for two children: $36,411

Percent of median household income spent on childcare: 36.27%

4. Minnesota

5. Vermont

6. Alaska

Average consumer debt total: $117,685

Debt to income ratio: 1.38

Average annual childcare cost for two children: $37,711

Percent of median household income spent on childcare: 40.64%

7. California

Average consumer debt total: $152,123

Debt to income ratio: 1.56

Average annual childcare cost for two children: $34,965

Percent of median household income spent on childcare: 35.27%

8. Oregon

Average consumer debt total: $123,659

Debt to income ratio: 1.62

Average annual childcare cost for two children: $32,781

Percent of median household income spent on childcare: 39.49%

9. Washington

Average consumer debt total: $151,635

Debt to income ratio: 1.49

Average annual childcare cost for two children: $35,090

Percent of median household income spent on childcare: 35.75%

10. Nevada

Average consumer debt total: $119,361

Debt to income ratio: 1.68

Average annual childcare cost for two children: $29,218

Percent of median household income spent on childcare: 37.33%

The rest of the PIA Western Alliance states:

14. Arizona

Average consumer debt total: $117,732

Debt to income ratio: 1.74

Average annual childcare cost for two children: $27,777

Percent of median household income spent on childcare: 34.74%

21. New Mexico

Average consumer debt total: $85,778

Debt to income ratio: 1.41

Average annual childcare cost for two children: $24,237

Percent of median household income spent on childcare: 37.84%

22. Montana

Average consumer debt total: $105,924

Debt to income ratio: 1.59

Average annual childcare cost for two children: $24,196

Percent of median household income spent on childcare: 33.37%

35. Idaho

Average consumer debt total: $124,928

Debt to income ratio: 1.94

Average annual childcare cost for two children: $17,747

Percent of median household income spent on childcare: 22.81%

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