Podcast host and personal finance influencer Dave Ramsey has come under fire for his recent comments about childcare costs.
Find Out: What Income Level Is Considered Middle Class in Your State?
Read More: 6 Unusual Ways To Make Extra Money (That Actually Work)
On The Dave Ramsey Show, a listener called into Ramsey’s podcast to discuss his financial situation. Ramsey was critical of the caller’s inability to budget, wondering why the listener was living paycheck to paycheck while making $180,000 a year.
What is the answer to the caller’s nonideal financial status? The cost of childcare.
Ramsey made disapproving comments regarding this situation that angered parents, who understand high childcare costs too well.
Sponsored: Protect Your Wealth With A Gold IRA. Take advantage of the timeless appeal of gold in a Gold IRA recommended by Sean Hannity.
“Free Summer Camps”
The listener told Ramsey and his co-host that his family spent $25,000 annually per child on daycare.
Most can agree that this is an excessive amount of money out of pocket — considering sending your young adult child to college is just as expensive yearly.
“Find you a free summer camp,” said The Ramsey Show co-host Jade Warshaw, “Anything during the summertime [to eliminate childcare costs].”
The concept of a free summer camp is appealing, but it is not the reality, especially in an economy that seems to require two incomes.
No childcare is free in this day and age — and this is exactly the type of uninformed comment that enraged parents who viewed the clip from The Ramsey Show on TikTok.
Some low-income summer camps may be offered, but those are competitive and medium-income families are not prioritized. Even a local YMCA summer camp can cost up to $800 a week.
The Reality of Child Care
Examining the true average costs of daycare throughout the country should shed some light on the very real situations that parents’ bank accounts face each year.
“Infant child care costs $216 a week, which is 17.1% of the national median household income,” said Move.org.
Of course, childcare is more expensive for young babies, but toddler childcare can also be pricey.
“National average daycare prices for 4-year-olds are a bit cheaper at $175 per week or 13.9% of the median income,” Move.org said.
Although $25,000 is an excessive amount, and on average, parents pay around half that each year, the cost of childcare is not something to approach with flippancy.
“76% of parents who report using childcare say that the cost strains their family’s budget,” said BabyCenter.
The reality of childcare costs is that many parents struggle to budget, save and pay off debt. The Ramsey Show rightfully angered parents. Through his comments, Ramsey may not understand the problems parents face in today’s economy.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: Here’s What Dave Ramsey Gets Wrong About Child Care Costs
Credit: Source link
