U.S. Department of Commerce Economics and Statistics Administration

Current

Population

Household Economic Studies

 Reports

What Does It Cost to Mind

Our Preschoolers?

By Lynne M. Casper

C E N S U S B U R E A U P70-52

September 1995

One of the most important decisions employed parents make is

arranging for someone to care for

their children while they are working. Reliable, quality care is

especially important for preschoolers because young children are

dependent on caregivers to fulfill

their basic needs and to keep

them from harm. Affordability is

also an important consideration

and for many parents child care is

a costly expense. In this report,

we examine who pays for child

care and how much it costs.

According to the Survey of Income and Program Participation,

in the fall of 1993 there were 9.9

million children under 5 who were

in need of child care while their

mothers were at work. Relatives

(41 percent), organized child care

facilities (30 percent), and family

day care settings (17 percent) care than they did in the past. A

were among the principal child family with a preschool-age child

care arrangements used for spent an average of $15 more per

preschoolers while their mothers week on child care in 1993 than in

were at work (figure 1). 1986. Child care costs for these

families averaged $79 per week in

Child care costs are 1993 compared with $64 per

on the rise week in 1986 (figure 2). 

Families with employed moth- In this report, we first discuss

ers are spending more on child the costs parents pay for different

Defining Child Care

Arrangements

Family members or

relatives include fathers, siblings, grandparents, and other relatives. An organized

child care facility is a

day care center, a

nursery school, or a

preschool. A family

day care provider is a

nonrelative who cares

for one or more unrelated children in her/his

home. In-home babysitters are nonrelatives

who provide care within the child’s home.

Figure 1.

Care Arrangements Used by Families With

Employed Mothers for Preschoolers: 1993

Relatives* 41%

Organized child 

care facilities 30%

Family day care

settings 17%

Mother cares for

child at work 6%

In-home babysitters 5%

Other arrangements 1%

*Includes fathers, siblings, grandparents, and other relatives.

Figure 2.

Weekly Cost of Child Care*

(In constant 1993 dollars. Limited to families with a preschooler)

Fall 1986 Fall 1987 Fall 1988 Fall 1990 Fall 1991 Fall 1993

*Represents total costs for all children in the family.

$64 $68 $72 $72

$77 $79
2 P70-52

types of arrangements. Since were working required a cash 

some children may have multiple payment.

arrangements during their moth- Whether or not a family pays ers’ working hours, costs will vary for child care depends in part on for individual children depending the type of arrangement used; on the number of arrangements parents are more likely to have to

used for each child. We therefore pay for child care when nonrela- show the total costs for each child tives are used. For example, in to account for the use of multiple 1993 over 80 percent of arrange- arrangements. Because children ments required cash payments often share arrangements with ol- when children were cared for in der brothers and sisters, we show organized child care facilities, in the final section of this report family day care settings, or by in- the cumulative expenses paid by home babysitters. In contrast families for all of their preschool- when relatives were used, only age children, taking into account one in six arrangements required 

any child care costs shared with cash payments. older siblings.

In-home baby-sitters and

Costs Per Arrangement organized child care facilities

Cash payments are required for are the most expensive

9 out of 10 arrangements when In 1993, the average weekly nonrelatives are used child care cost per arrangement

 In 1993, families with paid by families with employed

employed mothers used 11.7 mil- mothers was $57 (table 2). Child

lion child care arrangements to care costs varied by the type of

care for their 9.9 million preschool- arrangement used. Parents using

age children (table 1). Slightly in-home babysitters and organized

over half (51 percent) of all child child care facilities paid the most

care arrangements used for per arrangement (about $65), folpreschoolers while their mothers lowed by parents using family day

care ($52). Families using relatives to care for their preschoolers

paid the least ($42).

Costs are lower for

arrangements shared by two or

more children

Child care costs are generally

lower when two or more children

share an arrangement. Overall,

about 28 percent of paid arrangements were shared by two or

more children in 1993 (table 1). 

Preschoolers in families with

employed mothers were more

likely to have shared paid arrangements if they were cared for by

in-home babysitters (53 percent)

or relatives (37 percent) than if

they were cared for in family day

care (31 percent) or in organized

child care facilities (19 percent).

Families paid an average of

($62) per arrangement when arrangements were not shared (paid

for separately) compared with

($46) when arrangements were

shared (table 2). Thus, families

saved an average of $16 per

week per arrangement when arrangements were shared. In

absolute dollars, families whose

preschoolers shared organized

child care saved the least ($10 per

week). However, because costs

are more expensive for some arrangements than for others, the

percentage savings are different.

Families with preschoolers who

used family day care or a relative

saved at least 30 percent per arrangement if their preschooler

shared the arrangement with a sibling. In contrast, the savings

were only about half as much if

two or more children attended the

same organized child care facility

(15 percent).

Costs Per Child

Child care costs are higher for

infants and White children

We have just examined child

care payments and costs for various types of arrangements; we

now examine total child care costs

for children in different demographic groups. In 1993, almost

60 percent of preschool-age children were in at least one type of

Table 1.

Payments Made for Child Care Arrangements

for Preschoolers, Fall 1993

(Numbers in thousands)

 Payments made

Characteristics Number Total1 Separate Shared

ARRANGEMENTS

Total2 . . . . . . . . . . . . . . 11,661 5,996 4,337 1,659

In organized child care . . 3,268 2,923 2,375 548

In family day care3 . . . . . . 1,797 1,651 1,143 508

In-home babysitters . . . . . 621 524 246 278

Relatives . . . . . . . . . . . . . . 5,216 8874 562 325

CHILDREN

Total . . . . . . . . . . . . . . . 9,937 5,811 4,258 1,636

Age:

Less than 1 year . . . . . 1,631 876 645 231

1 year . . . . . . . . . . . . . . 2,122 1,216 931 285

2 years . . . . . . . . . . . . . 1,969 1,149 795 359

3 years . . . . . . . . . . . . . 2,161 1,376 1,002 409

4 years . . . . . . . . . . . . . 2,055 1,194 885 352

 Race:

White, not Hispanic . . 7,295 4,413 3,241 1,245

Black, not Hispanic . . . 1,161 609 481 128

Hispanic . . . . . . . . . . . . 1,078 599 404 201

1 Because a child may be in more than one paid arrangement, the combined number of children in separate and shared arrangements may exceed total number of childen. 2 Includes care provided by mother

while working and child’s attendance in school and school related activities. 3 Nonrelatives caring for

child in the provider’s home. 4 Payments exclude fathers and siblings.
P70-52 3

child care arrangement which White children were more larger share of their family income

required a cash payment, and on likely to be in paid arrangements on child care (11 percent versus 

average, these children spent (60 percent) than either Black or 7 percent). Married-couple families

about 30 hours per week in paid Hispanic children (about 55 per- spent about $78 per week to care

child care (tables 1 and 2). cent each). The average cost of for their children, at least $15

child care for White children was more per week than single-parent

 In 1993, the average weekly about $10 more per week than for families spent. However, marriedcost of child care per preschooler Black and Hispanic children. couple families spent a much

for families with employed moth- smaller proportion of their family Costs Per Family ers was $60 (table 2). When costs income on child care (7 percent)

were paid separately for each Larger families, married-couple than did single-parent families 

child, the average amount was families, and families with older (12 percent).

$64 per child compared with $47 and more highly educated

per child when costs were shared. mothers pay more for the care Families with older mothers

Thus, sharing one or more paid of their preschoolers paid more for child care than did

child care arrangements repre- In 1993, there were 8.1 million families with younger mothers. 

sented an average savings of families with preschoolers who re- Families with mothers who were

about $16 per week per child. quired care during the time their 35 years old or more spent on avmothers were at work. Of these erage at least $14 more per week

 Infants were less likely to be families, 56 percent paid an aver- on child care than families with

in paid child care than were older age of $74 per week for child care younger mothers (those less than

children; 54 percent of infants (un- or about 8 percent of their monthly 35). In contrast, families with

der 1 year) were in paid child care family income (table 3). Larger younger mothers spent a much

compared with 59 percent of older families paid much more for child larger proportion of their income

children (1 to 4 years). Because care than smaller families. on child care than did families with

babies often require more work, Families with two or more pre- older mothers. For example, famichild care for infants is typically school-aged children paid about lies with mothers aged 15 to 24

more expensive. In 1993, the av- $110 per week for child care while spent about 10 percent of their

erage cost of child care per infant families with one child paid only monthly income on child care,

was $66 per week, while for older $66 per week. Families with two compared with families with mothchildren it was $59 per week. or more children also spent a ers aged 35 or over who spent

Table 2.

 

Weekly Child Care Costs and Hours in Paid Arrangements for Preschoolers, Fall 1993

 Average weekly costs ($) Average weekly hours in paid arrangement

 Characteristics Total Separate Shared Total Separate Shared

Mean S.E. Mean S.E. Mean S.E. Mean S.E. Mean S.E. Mean S.E.

ARRANGEMENTS

Total1 . . . . . . . . . . . . . . 57.47 0.88 61.83 1.10 46.06 1.32 28.15 0.27 27.78 0.32 29.14 0.51

In organized child care . . 63.58 1.18 65.42 1.36 55.64 2.25 28.48 0.39 27.71 0.43 31.82 0.88

In family day care2 . . . . . . 51.52 1.41 56.59 1.91 40.13 1.43 28.90 0.50 29.07 0.61 28.52 0.87

In-home babysitters . . . . . 68.31 4.94 82.57 8.47 55.70 5.22 23.97 0.96 22.22 1.27 25.52 1.41

Relatives3 . . . . . . . . . . . . . 42.04 1.84 48.46 2.67 30.94 1.70 28.28 0.71 28.05 0.88 28.68 1.17

CHILDREN

Total . . . . . . . . . . . . . . . 60.17 0.94 63.88 1.13 47.46 1.35 29.51 0.28 28.73 0.33 30.05 0.53

Age:

Less than 1 year . . . . . 66.39 3.15 71.80 3.75 51.29 5.41 30.49 0.76 29.66 0.89 32.80 1.39

1 year . . . . . . . . . . . . . . 61.35 2.02 64.24 2.46 51.92 2.97 30.64 0.61 30.13 0.69 32.30 1.32

2 years . . . . . . . . . . . . . 59.35 1.92 64.00 2.41 48.27 2.87 30.07 0.63 29.10 0.76 31.82 1.13

3 years . . . . . . . . . . . . . 56.50 1.82 60.39 2.26 42.15 2.32 28.96 0.56 28.52 0.66 27.56 1.07

4 years . . . . . . . . . . . . . 59.43 1.93 61.58 2.17 46.69 2.52 27.73 0.59 26.47 0.68 27.49 1.10

Race:

White, not Hispanic . . 61.64 1.06 64.80 1.27 49.80 1.56 29.33 0.30 28.72 0.36 29.19 0.58

Black, not Hispanic . . . 52.72 2.58 56.96 2.90 36.78 4.67 31.65 1.02 30.15 1.13 37.30 2.15

Hispanic . . . . . . . . . . . . 51.34 2.77 60.34 3.74 31.45 2.06 29.12 1.00 28.20 1.21 29.96 1.71

S.E. Standard error of the estimated mean. 1Includes payments for school related child care arrangements. 2Nonrelatives

caring for child in the provider’s home. 3Payments exclude fathers and siblings.
4 P70-52

about 7 percent of their income on percent). Poor families paid about

child care. $25 less a week for child care

than non-poor families ($50 ver- Families whose mothers

sus $76). However, child care have more education pay more for

consumed an especially large child care than families whose share of the poor family’s budget; mothers have less education. In poor families who paid for care 1993, families whose mothers had

spent 18 percent of their income less than a high school education

on child care, compared with non- paid significantly less for child care poor families who spent 7 percent per week ($60) than families (figure 3). whose mothers completed some

college ($70), and those whose Fewer families receiving eimothers were college educated ther general assistance, AFDC,

($93). In contrast, while child care Food Stamps, or WIC payments

expenditures accounted for about paid for child care than did fami10 percent of the family budget in lies not receiving these benefits

families whose mother had less (46 percent versus 57 percent).

than a high school education, they Families who participated in at

accounted for only about 7 per- least one of these programs spent

cent of the budget in families an average of $50 per week on

whose mothers were college edu- child care, while families who did

cated. not participate in any of these programs spent an average of about Child care is more of an $78 per week on care. In contrast, economic burden for child care consumed about 13 poor families

percent of the family budget for

In 1993, relatively fewer poor participant families compared with

than non-poor families paid for only about 7 percent for non-parchild care (37 percent versus 58 ticipant families.

Child care is more expensive

in the Northeast and in

metropolitan areas

In 1993, more families in the

South paid for child care than did

families in any other part of the

country. But, families paid more

for child care in the Northeast

($85 per week) than either in the

Midwest or in the South (about

$70 per week each). Child care

was more expensive in metropolitan areas ($80 per week) than in

nonmetropolitan areas ($55 per

week), with families residing in

metropolitan areas spending a

slightly higher percentage of their

monthly income on child care (8

and 7 percent respectively).

Upcoming Reports

Sharp changes in the distribution of preschoolers’ child care

arrangements have been observed between 1991 and 1993.

The most notable changes include

the rise in the use of organized

child care facilities and the decline

in the use of fathers as principal

care providers during the time

mothers are at work. Additional reports about these arrangements

will be issued later this year.

More information

A detailed table package

showing the child care arrangements of preschool and

gradeschool children is available

on floppy disk for $20 or on paper

for $10 from Population Division’s

Statistical Information Office

(301-457-2422). The table package is also available on the

INTERNET (www.census.gov);

look for Child Care data from the

Population Division.

Contacts: Child care issuesLynne Casper (301) 457-2416

lcasper@census.gov.

Figure 3.

Percent of Monthly Family Income Spent on

Child Care by Family Income and Poverty Status*

Less than $1,200

$1,200 to $2,999

$3,000 to $4,499

$4,500 or more

Below poverty

Above poverty

*Limited to families with a preschooler.

25%

12%

8%

6%

18%

7%
Table 3.

Weekly Child Care Costs Paid for Preschoolers by Families With

Employed Mothers, Fall 1993

(Numbers of families in thousands. Excludes families with no report of family income in last 4 months)

Weekly child Monthly income2 Income spent per 1 Payments made care expenses — of — month on child care

Hours Characteristics Number worked

of Standard per Family Mother Standard

families Number Percent ($) error week1 ($) ($) Percent3 error

All families ................. 8,076 4,493 55.6 74.15 1.25 36.52 4,254 1,839 7.55 0.31

Race and Hispanic Origin:

White, not Hispanic ......... 5,937 3,420 57.6 76.35 1.44 36.09 4,491 1,889 7.37 0.31

Black, not Hispanic . . . . . . . . . 993 517 52.1 60.89 3.18 38.37 3,104 1,645 8.50 0.35

Hispanic origin . . . . . . . . . . . . . 831 434 52.2 65.69 3.80 36.88 3,174 1,434 8.97 0.43

Marital Status:

Married, husband present .... 6,261 3,522 56.3 77.88 1.46 36.67 4,842 1,951 6.97 0.29

Widowed, separated, divorced . 868 530 61.1 61.09 3.00 36.81 2,157 1,610 12.27 0.79

Never married . . . . . . . . . . . . . 948 442 46.6 60.07 3.27 35.01 2,086 1,213 12.48 0.73

Age of Mother:

15 to 24 years ............. 1,372 628 45.8 58.49 2.25 34.46 2,495 967 10.16 0.47

25 to 34 years ............. 4,732 2,701 57.1 72.44 1.50 37.00 4,089 1,753 7.68 0.36

35 years and over .......... 1,972 1,164 59.0 86.56 2.94 36.51 5,588 2,508 6.71 0.26

Number of Preschoolers:

1 child ................... 6,515 3,694 56.7 66.48 1.17 36.53 4,229 1,835 6.81 0.23

2 or more children .......... 1,561 799 51.2 109.63 3.86 36.49 4,371 1,853 10.87 0.62

Educational Attainment:

Less than high school . . . . . . . 847 373 44.0 59.70 4.07 35.55 2,592 987 9.98 0.52

High school, 4 years ........ 2,931 1,498 51.1 65.07 1.77 37.08 3,389 1,420 8.32 0.35

College, 1-3 years .......... 2,246 1,277 56.9 69.51 2.01 35.71 3,833 1,618 7.86 0.38

College, 4 or more years ..... 2,052 1,345 65.5 92.67 2.75 36.93 6,079 2,751 6.61 0.27

Enrollment in School:

Enrolled in school. . . . . . . . . . . 622 369 59.4 78.81 4.18 33.71 3,904 1,590 8.75 0.36

Not enrolled in school ....... 7,454 4,124 55.3 73.73 1.31 36.77 4,286 1,861 7.46 0.31

Employment Status:

Full-time worker ............ 5,301 3,341 63.0 79.00 1.46 41.34 4,333 2,072 7.90 0.33

Part-time worker............ 2,775 1,153 41.5 60.11 2.27 22.56 4,027 1,162 6.47 0.23

Work Shift Status:

Daytime worker ............ 5,009 3,173 63.4 76.58 1.47 38.55 4,358 1,940 7.61 0.33

Non-day worker ............ 3,068 1,320 43.0 68.32 2.34 31.64 4,006 1,594 7.39 0.28

Monthly Family Income:

Less than $1,200 . . . . . . . . . . . 927 366 39.4 47.29 2.74 32.74 815 748 25.14 7.17

$1,200 to $2,999 ........... 2,667 1,295 48.6 60.16 1.86 35.97 2,177 1,202 11.98 2.32

$3,000 to $4,499 ........... 2,091 1,191 56.9 73.10 2.13 37.34 3,746 1,647 8.46 2.08

$4,500 and over............ 2,391 1,642 68.7 91.93 2.37 37.20 7,029 2,723 5.67 0.25

Poverty Level:

Below poverty level . . . . . . . . . 870 319 36.6 49.56 3.47 30.66 1,211 696 17.73 1.02

Above poverty level ......... 7,206 4,174 57.9 76.03 1.30 36.97 4,487 1,926 7.34 0.31

Program Participation:

Recipient4 ................ 1,218 558 45.8 49.76 2.27 32.97 1,682 889 12.82 0.87

AFDC . . . . . . . . . . . . . . . . . . 352 154 43.7 46.47 4.27 28.10 1,176 736 17.13 1.24

WIC . . . . . . . . . . . . . . . . . . . 785 344 43.8 52.11 3.05 34.07 1,830 897 12.34 0.90

Food Stamps . . . . . . . . . . . . 708 319 45.0 45.42 3.04 31.71 1,349 822 14.60 1.11

Non-recipient5 ............. 6,858 3,935 57.4 77.61 1.36 37.02 4,619 1,973 7.28 0.31

Region:

Northeast ................. 1,443 658 45.6 85.07 3.38 34.62 4,670 2,032 7.89 0.34

Midwest .................. 2,237 1,261 56.4 71.47 1.96 36.28 4,236 1,853 7.31 0.27

South .................... 2,739 1,684 61.5 69.17 2.17 37.66 4,196 1,778 7.14 0.27

West. . . . . . . . . . . . . . . . . . . . . 1,658 890 53.7 79.32 2.98 36.11 4,083 1,789 8.42 0.42

Metropolitan Residence:

Metropolitan ............... 6,283 3,487 55.5 79.72 1.50 36.50 4,497 1,943 7.68 0.32

In central cities ........... 2,272 1,204 53.0 81.66 2.89 36.75 4,036 1,855 8.77 0.44

Suburbs ................ 4,010 2,283 56.9 78.70 1.71 36.37 4,740 1,989 7.19 0.27

Nonmetropolitan............ 1,793 1,006 56.1 54.85 1.72 36.59 3,414 1,478 6.96 0.23

1

Average per week for families making child care payments for any child under 5 years old. 2Average monthly income for the last 4 months among

families making child care payments. 3

Percent is ratio of average monthly child care payments to the average monthly family income. 4Also

includes the small number of families (17,000) on General Assistance. 5

Family not receiving either General Assistance, AFDC, Food Stamps or WIC

payments.

P70-52 5
6 P70-52

Source and Accuracy partially corrects for bias due to are provided for means and perof Estimates survey undercoverage. Howev- cent of income in the tables. We

All statistics are subject to er, biases exist in the estimates do not provide estimates of total

sampling error, as well as non- when missed persons have error, which includes nonsamsampling error such as survey characteristics different from pling error. Contact Elaine Hock,

design flaws, respondent classifi- those of interviewed persons in Demographic Statistical Methods

cation and reporting errors, data the same age-race-sex group. Division, at 301-457-4182 or 

processing mistakes, and under- Analytical statements in this on the internet at ehock@cencoverage. The Census Bureau report have been tested and sus.gov for information on (1)

has taken steps to minimize er- meet statistical standards. How- the source of data, (2) the accurors in the form of quality control ever, because of methodological racy of estimates, (3) the use of

and edit procedures to reduce differences, use caution when standard errors, and (4) the

errors made by respondents, comparing these data with data computation of standard errors

coders and interviewers. Ratio from other sources. Standard for other estimates not found in

estimation to independent age- errors which estimate the magni- this publication.

race-sex population controls tude of the SIPP sampling error