The daycare system in America is damaged. It’s become such a problem that people are citing the cost of childcare as the number one reason they’re choosing to either not have kids or are having less kids than they want to.
The average cost of daycare in America is $10,468 a year, but it’s easily double in certain states. It’s not unheard of for families to be spending on the low end 20-30 percent of their annual income on child care.
In New York State alone, the average annual cost of daycare is $14,144, according to the Economic Policy Institute. If a family has one child in New York, they’re spending about 21.2 percent of their annual income on child care. If they have two children, it’s 38.7 percent of their income.
Data like this is just astounding. Surprisingly, tech companies are out to fix the damaged daycare system. Wonderschool and WeeCare are two new tech startups trying to tackle the issue of child care, and they’re similar to Lyft or Uber.
Both companies encourage people to start their own daycares from the comfort of their home homes and they offer an individual all the tools they need to get started on a daycare program.
Wonderschool has raised $24 million and WeeCare has raised $4.2 million in funding so far. Wonderschool is currently operating in New York City, Los Angeles, and San Francisco, and WeeCare is in Los Angeles right now with plans to expand.
These business models are certainly intriguing, and hopefully they can help alleviate the problems with child care costs. It will be exciting to see them expand to more cities in the near future!
Bre is a female millennial go getter residing in New York. One part entrepreneur, one part geek, she obtained her degree in Textile/Surface Design from The Fashion Institute of Technology.
She has held some exciting roles in both fashion as a designer working for brands like Victoria’s Secret and Henri Bendel, as well as in ad tech working for publishers like Ziff Davis.
Today she operates her own luxury label Bre Avery, and is also the Chief Chick at Chipchick.com which reaches millions of women each month.
Bre is passionate about keeping women informed of the latest technology trends and products to improve their lifestyle and believes in providing real, useful information and advice to her readers.