When Kendra Kinnick found out she was pregnant, she didn’t call her parents first. She called a daycare. “If you get that positive pregnancy test, that first call is going to be a daycare,” said the Wisconsin mom of two. For many families, that moment has become the first sign of a much bigger reality. Childcare can reshape nearly every aspect of a family’s budget.Across the country, parents say the cost exceeds mortgages, drains their savings and, in some cases, forces them out of the workforce altogether. A growing financial strainChildcare costs in the U.S. continue to climb, rising faster than inflation. Here's what some data shows: Between September 2024 and September 2025, childcare costs increased 5.2% nationwide, according to the Bureau of Labor Statistics. That amount of change in one year means childcare costs are rising faster than the overall inflation of general goods and services. According to the U.S. Department of Labor, families are spending 8% to 16% of their income on care for just one child. Child Care Aware found that in 49 states and the District of Columbia, childcare for two children exceeded median annual rent payments by 19% to 100%. For infants, the cost of childcare exceeds the cost of in-state college tuition in 41 states.For lower-income households, the burden is often heavier as childcare takes up a larger portion of income and leaves less money for savings or basic expenses. Explore the costs where you live Use the interactive map below to see how childcare costs compare in your state and what resources may be available to help. Why childcare is so expensive Several factors contribute to the price increases. Parents like Kinnick, who rushed to get on a care center's waitlist before even telling family she was expecting, know firsthand that the demand for childcare far exceeds the number of available spots. This reality is even more pronounced in the South and Midwest, where populations have surged, according to the Bank of America Institute. However, despite the desperate need, childcare centers are trapped in a financial bind. They cannot charge families the true cost of care without pricing them out further, which forces them to pay early educators low wages. In turn, low wages fuel a high turnover of care staff and create a chronic lack of available centers.For many households, childcare is a nonnegotiable cost and one that families simply cannot "trade down.""You can cut back on groceries or delay a purchase," said Bank of America Institute economist Taylor Bowley. "But childcare doesn't work that way."Location mattersAs the map above shows, the childcare crisis does not look the same everywhere. In the South, where populations have boomed since COVID-19, lack of access has led to the development of childcare deserts. According to a recent study by the Buffet Early Childhood Institute, nearly 129,000 children in Florida lack access to childcare within a reasonable distance, highlighting a gap between the number of families who need care and the number of options available to them.In the Midwest, childcare may be easier to find, but family budgets are overwhelmed by high costs. The Wisconsin Department of Children and Families found that infant care consumes 40% of single-parent annual income and up to nearly 19% of median family income. In parts of New England, childcare costs are among the highest in the country. For example, parents spend about 20% of their median income in Massachusetts and about 28% of their median income in New Hampshire, far exceeding the benchmark for affordability."One of the government estimates is that, technically, if childcare is no more than 7% of a household income, it's considered affordable," said Bowley. Ripple effects go far beyond costThe impact of rising childcare expenses extends well beyond household budgets. For many families, especially those with multiple children, the math simply does not work. "It just didn't really make any sense anymore," said New Hampshire parent Laura Harrison. "We just decided that my paycheck as a teacher would be better spent me being home."Women in particular are more likely to reduce their hours or leave their jobs altogether. For those who do not have the option to stay home, their savings are shrinking. Families have less money to save and are dipping into their savings to cover childcare expenses. What's being doneThere are signs of progress, though they remain uneven across the country.In 2025, New Mexico launched free universal childcare for children from 6 weeks to 13 years old. New York City announced plans to expand free childcare to 2-year-olds in 2026. San Francisco raised income limits to $300,000, allowing more families to qualify for help. How families are responding While broader solutions evolve, many families are getting creative to make childcare more manageable.Some parents are turning to nanny shares, where two families split the cost of one caregiver, while others are relying on babysitting co-ops within their communities to reduce expenses. In-home daycare providers can sometimes offer lower rates than larger childcare centers, though availability varies by area. Financial tools like Dependent Care Flexible Spending Accounts may also help families offset costs by allowing the use of pretax income for eligible childcare expenses. And some employers now offer childcare subsidies, backup care programs or stipends as part of their benefits packages. Still, what is available and affordable can look very different depending on where you live, which is why experts recommend researching local and state-specific programs early.Use the interactive map to explore programs and resources available in your state.