Recent research from the U.S. Department of Agriculture indicates that the average cost of raising a child has increased $31,000 since 1960, while daycare and nursery rates have grown 175% since 1990.
That’s right…this is not your grandparents’—nor your parents’—cost of care.
Putting these numbers further into perspective, the study—which accounted for inflation rates and income growth over time—identified that child care expenses grew by 16% over the course of six decades, far outpacing the rate of growth for housing* and transportation, during the same period of time (5% and 9%, respectively).
Test Your Dependent Care FSA IQ!
Employers, that sounds great, right? Okay, let’s make it sound even better and let the numbers do the talking—in the form of a quick quiz:
(Hover to reveal answer options!)
(Click on the boxes to reveal the answer options!)
1.
U.S. businesses lose over ______ annually due to missed employee workdays attributed to child care breakdowns.A) 4 million
B) $40 million
C) $400 million
D) $4 billion
2.
Access to reliable child care can reduce employee turnover by _____.A) 20%
B) 40%
C) 60%
D) 80%
Okay, we agree—those were some pretty challenging questions. Let’s step back from the broader dependent care benefits and mix in some of the basics to help your score:
3.
A dependent under the age of ___ would count as a deduction under IRS Code 151(c).A) 13
B) 14
C) 15
D) 16
4.
Summer and holiday day camps are considered eligible dependent care expenses.A) True
B) False
