We hear a lot about how housing costs have been shooting up. But the cost of childcare in the US has been rising faster and hitting record highs.

The study this data is from in the graph is based on having two children, an infant and a four year old.

The national average price of child care for 2023 was $11,582 per child (this can be much higher in some states). This means that a married couple has to spend more than 10% of their income to care for one child, and a single parent spends 32% of their income to afford childcare for just one child.

All this can make it hard to feel like you’re getting ahead when so much of your income is going to essential expenses. Don’t focus too much time and energy on these costs since they are mostly out of your control.

Instead, think about ways to increase your income by changing jobs, asking for a raise, or pursuing a side hustle. Keep saving as much of each paycheck as you can, even if you start small. With the savings, buy low cost index funds. Do this for decades and you will be sitting on a big pile of money even if household expenses keep rising.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.‎

-Vivi & Shane