How To Deal With The Rising Daycare Costs in Wisconsin

Wisconsin parents are facing an increasing financial challenge: daycare costs in Wisconsin now exceed the annual cost of in-state undergraduate education. According to UW-Madison, tuition and fees come to around $10,555.52, while the average cost of infant daycare is approximately $12,597 per year.

The U.S. Department of Health and Human Services defines affordable childcare as costing no more than 7% of a family's income. In Wisconsin, however, infant care often consumes 18.5% of household income. This means that only about 6.5% of families in the state can truly afford infant care.

Given these circumstances, many parents are seeking ways to manage the rising daycare costs. Fortunately, several childcare assistance programs and financial resources are available. From state-funded childcare subsidies to online installment loans in Wisconsin, there are options to help relieve the burden.

Understanding the Rise in Daycare Costs

Average Daycare Costs in Wisconsin

According to the Economic Policy Institute, Wisconsin ranks as the 20th most expensive state for daycare, with an average monthly cost of $1,047. This is 48.3% more than the cost of four years of in-state public college tuition.

For families with both an infant and a four-year-old, childcare expenses can consume nearly one-third of their income. Single parents and families living in the state's least affordable counties face even steeper challenges. Notably, the five least affordable counties for childcare in Wisconsin are:

• Milwaukee

• Adams

• Door

• Dane

• Winnebago

In Milwaukee County alone, the average cost of infant care reaches a staggering $14,543 per year.

Why Are Daycare Costs So High?

Several factors contribute to the steep cost of childcare services, including:

• Increases in overhead costs (rent, food, toys, supplies, insurance)

• Staff wages and benefits

• Limited availability of quality providers

The COVID-19 pandemic also had a long-term impact on childcare operations, with many facilities facing closures, reduced capacity, and increased health and safety costs.

4 Ways to Manage Daycare Costs in Wisconsin

1. Wisconsin Shares Child Care Subsidy Program

The Wisconsin Shares Child Care Subsidy Program offers financial support to eligible families while parents are working or participating in an approved activity.

Eligibility Criteria: To qualify, families must:

• Be a Wisconsin resident

• Have a child under the age of 13 (or under 19 with special needs)

• Meet income guidelines (e.g., a family of three must earn less than approximately $4,400/month)

• Be engaged in qualifying activities such as employment or job training

Example: A single mother working full-time at a retail job may qualify for assistance that pays a significant portion of her monthly childcare costs, allowing her to continue working without being financially overwhelmed.

You can apply online, in person, or by phone. For residents of Milwaukee County, it is recommended to begin online and then complete the process via the Milwaukee Enrollment Services hotline.

2. Child Care Bridge Fund (CCBF)

If your income is slightly above the limit for Wisconsin Shares, the Child Care Bridge Fund may offer help. This program assists qualifying families by paying up to $1,000 in past-due daycare tuition to help stabilize both the family and the childcare provider.

Eligibility Criteria:

• Families must be working or attending school

• Income must be just above the Wisconsin Shares threshold

• There must be documented past-due childcare tuition

Example: A two-parent household earning just above the income limit for Wisconsin Shares, but behind on daycare payments due to a medical emergency, may qualify for Bridge Fund assistance to bring their account current.

CCBF is currently available in the following counties:

• Buffalo

• Chippewa

• Dunn

• Jackson

• Eau Claire

• Pepin

• Polk

• Pierce

• Trempealeau

• St. Croix

3. Wisconsin Department of Children and Families Public Search Tool

The Wisconsin DCF Public Search is a free tool to locate high-quality, regulated childcare providers. Most listed centers are rated through YoungStar, Wisconsin's childcare quality rating system. You can compare providers based on several key indicators such as staff training, learning environment, and business practices.

4. Online Installment Loans in Wisconsin

If you don't meet the requirements for childcare assistance programs, consider an alternative financial solution such as an online installment loan in Wisconsin. These loans can help cover daycare expenses with flexible repayment options.

We offer unsecured installment loans ranging from $100 to $1,500. Your credit will be checked during the application process, but perfect credit is not required. Because these loans are unsecured, there's no need to provide collateral. It's a quick, flexible way to manage urgent childcare expenses.

Alternative Cost-Saving Strategies for Childcare

In addition to financial aid and loans, here are a few creative ways parents can save on childcare expenses:

• Nanny Shares: Partner with another family to share one nanny. This way, both families pay less than they would for full-time individual care.

• Dependent Care Tax Credit: Families can claim up to $3,000 per child (up to $6,000 for two or more) in childcare expenses on their federal tax return.

• Employer Childcare Benefits: Some employers offer flexible spending accounts (FSAs) for dependent care or provide on-site childcare. Check with your HR department to see if you’re eligible.

• Work-From-Home Flexibility: If one or both parents have flexible remote work options, alternating care responsibilities may reduce full-time daycare needs.

• Family Support: Enlisting help from grandparents or relatives can significantly cut down on daycare hours and cost.

Secure an Online Installment Loan Today

Rising daycare costs in Wisconsin continue to put pressure on working families. With infant care averaging $12,597 annually and traditional financial assistance limited to a select group, many parents are left seeking alternatives.

If you need fast funding to manage daycare costs, consider applying for an online installment loan in Wisconsin. You can start the process by calling your nearest Wisconsin Auto Title Loans, Inc. store or filling out our secure online form today. 

Don't wait until your childcare expenses pile up—act now to ease your financial burden and get the support you need. Apply today and take the first step toward financial peace of mind.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.