The Economist published an analysis in June 2026 assessing global child care affordability based on a seven percent gross income benchmark [1].
This metric serves as a critical indicator for family planning and fertility rates, as the cost of care often determines whether parents can remain in the workforce. While some regions meet this threshold, others continue to see costs that strain household budgets.
"A COMMON COMPLAINT among working parents is that child care has become too expensive," the Economist editorial team said [1]. The publication used the seven percent of gross income figure as the standard for what constitutes an affordable cost for households [1].
In the U.S., the financial burden remains significant. The average annual cost of child care per child in the U.S. is approximately $13,000 [2]. This high cost has led to a situation where child care expenses now exceed mortgage payments for millions of households [3].
An author for the New York Post said child care got expensive, specifically noting the $13,000 per child per year figure [2]. This highlights a contradiction between the Economist's finding that child care is becoming more affordable in some areas and the lived experience of families in the U.S. who face costs that outpace other major housing expenses.
Despite the Economist's observation that many countries meet the affordability benchmark, the disparity between rich-world nations remains stark. The cost of care continues to be a primary economic hurdle for millions of parents attempting to balance professional obligations, and child rearing [1], [3].
“Child care costs now exceed mortgages for millions.”
The gap between theoretical affordability benchmarks and actual market prices suggests that public policy in the U.S. has not kept pace with the cost of living. When child care costs exceed mortgage payments, it creates a systemic economic barrier that may lower birth rates and discourage workforce participation among parents.
