Parents in the United States Experience Higher Financial Stress Than Other Adults, According to a Survey

Parents’ financial satisfaction is declining, even though most American adults feel fairly confident about their financial situation.

As per the Federal Reserve’s most recent Economic Well-Being of U.S. Households survey, the percentage of parents who have children under 18 and said they’re doing okay financially declined to 64% in 2023 from 69% the previous year. From 2021, that represents a drop of 11 percentage points.

According to the central bank, parents are the only group of adult Americans who have experienced “sizable swings in well-being.” Following the start of the pandemic, the group’s well-being declined precipitously, made a strong recovery in 2021, and has since declined once more.

However, the proportion of adults who stated they are at least OK financially stayed at 72%, unchanged from 2022. Still, that represents a 6 percentage point decline from the most recent peak of 78% in 2021.

The most frequent financial issue facing all Americans was inflation, which was followed by housing and basic living costs.

According to the Fed, a significant portion of the parent’s financial decline appears to have occurred between 2021 and 2022. For instance, the percentage of parents who could only pay for a $400 emergency bill with cash, savings, or a credit card that was paid off at the next statement rose to 64% in 2021 but fell to 57% in 2022. The percentage decreased marginally to 56% in 2023.

In addition, parents bear a large portion of the additional costs, especially now that inflation is still plaguing Americans. Four out of ten working single parents with children under the age of thirteen used paid daycare; the percentage is roughly the same for parents who live with a spouse and have two working parents.

The average monthly childcare expense borne by parents was $800. The median cost increased to $1,100 for parents who paid for 20 hours or more of childcare per week.