Parents with younger children are feeling the financial strain more than ever before, according to a recent survey by the Federal Reserve. The Survey of Household Economics and Decisionmaking revealed a significant drop in the financial well-being of parents living with children under the age of 18. The percentage of parents who reported feeling financially secure plummeted from 69% in 2022 to 64% in 2023, marking the lowest point since 2015.
The survey attributes this decline in financial security to the expiration of pandemic-era benefits, such as the expanded child tax credit and support for child care groups. The end of these programs has left many families struggling to make ends meet, with monthly child care expenses rivaling the cost of rent in some cases.
Experts warn that the impact of these changes has been dire, with many families experiencing lower disposable income, increased poverty, and food hardship. In fact, parents are finding it increasingly difficult to come up with $400 in case of an emergency, signaling a troubling trend in financial stability.
The lack of support for child care centers has also exacerbated the situation, leading to closures and price hikes for families in need of these services. The so-called “child care cliff” has left many parents struggling to find affordable and reliable care for their children.
As the survey indicates, overall financial well-being for Americans has worsened in 2023, with inflation being a top concern for many respondents. President Biden has called on retailers to lower their prices in response to these concerns, but many voters seem to trust former President Trump more to address the issue.
In conclusion, the financial strain on parents with younger children is a pressing issue that requires urgent attention from policymakers and lawmakers. Families are struggling to make ends meet, and without adequate support, the situation is only likely to worsen.