Rising childcare costs lead parents to have fewer children, survey finds

(InvestigateTV) — Around 80 percent of parents with kids under 18 say raising a kid is getting more expensive, and those rising costs are affecting more than just monthly budgets, according to a new LendingTree survey.

In the survey, 44 percent say financial constraints have led them to have fewer children.

Parents pointed to saving for college or future education as their biggest child-related financial strain, slightly ahead of food, extracurricular activities and clothing.

“For most people, their financial wiggle room is pretty tiny right now anyway,” LendingTree Chief Consumer Finance Analyst Matt Schulz said. “Then when you factor in just how much more expensive things like daycare and some other costs around raising a child have gotten, it just makes it even more hard.”

LendingTree also found strong support for more help with childcare costs, with 81 percent of parents surveyed saying the government should do more to subsidize them.

“And I mean, when you’re talking about 80 percent agreement, you’re talking about a mix of red and blue and on down the line,” Schulz said. “So it’s clear it’s a really big problem.”

For parents struggling with childcare costs, Schulz said it’s important to look into what help may be available where you live. That could include tax credits, childcare assistance programs or other local resources, depending on your family’s eligibility.

He also said families who can set aside even small amounts may want to create a separate savings fund for child-related costs.

“Putting a little bit of money away in a high yield savings account and calling it your family fund or whatever you want to call it is probably a pretty good idea because the more you can do to let that money grow, so some money will be around when that little one arrives or when the next little one arrives, the sooner you can build up that savings, the better off you’ll be,” Schulz said.

Schulz also said credit can be a short-term tool if it’s managed carefully, but it can be risky if balances start to spiral. For parents carrying debt, he said a zero-percent balance transfer card may help lower interest costs, but it’s important to read the terms, watch for fees and make sure the balance can be paid down before the promotional period ends.