Parents with young kids reported financial well-being drop-off in 2023 as inflation concerns rose
Parents with younger children saw a significant drop-off in their reported financial well-being last year, according to an annual comprehensive study of American household finances released by the Federal Reserve last week.
Parents with younger children saw a significant drop-off in their reported financial well-being last year, according to an annual comprehensive study of American household finances released by the Federal Reserve last week.
The Survey of Household Economics and Decisionmaking found a decline in the percentage of parents living with children under age 18 who felt financially secure, dropping from 69% in 2022 to 64% in 2023. That was also down from a record high of 75% in 2021.
The current figure is now the lowest on record going back to 2015, the Fed survey data shows.
The Fed does not explicitly state the reason for the dramatic decline in sentiment among those who participated in the survey, though it does note that the monthly child care expenses some families are facing have climbed to nearly as much as the cost of rent.
Experts say that is the product of two key recent events that have destabilized many American families’ finances: the expiration of the pandemic-era expanded child tax credit — which saw some families receive monthly payments of up to $250 per older child and $300 per young child — and the sunsetting of support for child care groups.
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