These States Have The Most Affordable Childcare, New Study Shows

For many families, the rising cost of childcare isn’t just another line in the budget, it’s a major source of stress. In several states, childcare now outpaces college tuition, and for single parents, it can eat up more than half of their income. With numbers like that, it’s no wonder more parents are on the hunt for places where childcare is both more affordable and accessible.

A new study from WalletHub aims to help, ranking all 50 states by how much of their income parents typically spend on care. The analysis compared the costs of both family-based and center-based childcare, adjusting for median income. To give a clearer picture, WalletHub broke the results down by household type: married-couple families and single parents.

States with the most affordable center-based childcare for married couples:

1. South Dakota (6.66% of income spent on childcare)
2. South Carolina
3. Mississippi
4. Utah
5. North Dakota
6. Kentucky
7. Louisana
8. Alabama
9. Alaska
10. Georgia (8.72% of income spent on childcare)

States with the most affordable center-based childcare for single parents:

1. South Dakota (20.71% of income spent on childcare)
2. Utah
3. Alaska
4. Idaho
5. South Carolina
6. Maine
7. North Dakota
8. Nebraska
9. Arizona
10. Iowa (28.88% of income spent on childcare)

Whether it’s thanks to a lower cost of living, stronger wages, or greater access to childcare centers, these states offer a bit more breathing room for parents. Meanwhile, others—like New York, New Mexico and Washington—rank among the least affordable.

“Decisions about childcare affordability are nested within a broader set of questions for families,” Steven Meyers, PhD, a financial and clinical psychologist and professor at Roosevelt University explains in the report. While the actual price of care is important, it has to be weighed against local cost of living, average income and availability. Families may be forced to pay more when there are fewer local options at different price points.

Cassandra D. Chaney, PhD, a professor at Louisiana State University, adds that families should also consider whether a state offers subsidies, voucher programs, or other forms of financial assistance. She also encourages parents to consider the quality of childcare when possible. “Research supports that children who experience quality early learning programs are 25% more likely to graduate high school, four times more likely to complete a bachelor’s degree, and earn up to 25% more in wages as an adult,” she says.

You can see where all 50 states fall when it comes to childcare affordability at WalletHub.com. Moving not an option? Check out these five tips for cutting childcare costs.