For many families in the Gallatin Valley, childcare is not optional, but it is increasingly unaffordable.
“All things are difficult to afford here, but childcare still remains one of the biggest expenses for families,” said Tori Sproles, director of early learning for Gallatin United Way.
According to 2023 U.S. Census data, the median household income in the Bozeman area is about $79,000 a year. But childcare costs often far outpace what federal guidelines consider affordable.
An analysis of tuition rates from a dozen childcare providers across the valley shows that infant-to-toddler care costs an average of about $1,500 per month — or $18,000 per year — for one child.
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Federal health guidelines recommend families spend no more than 7% of household income on childcare. Based on those recommendations, a household would need to earn roughly over $250,000 a year for that level of care to be considered affordable.
Despite high tuition rates, Sproles said many childcare providers are still struggling financially.
“What families are paying don’t even match up,” Sproles said. “So a lot of programs are barely making ends meet themselves, even though their tuition rates are high.”
Gallatin United Way is working to address what Sproles describes as two core issues: accessibility and affordability.
“To hopefully provide transparency on what’s out there and let parents know that there are available spots in formalized care,” she said.
In September, United Way helped launch Child Connect, a community-led tool partnered with Kinside, designed to give parents real-time information about available childcare options. Sproles described the platform as a “Zillow for childcare.”
While tools like Child Connect help families identify open slots, cost remains a major barrier. United Way is now working with local employers to explore ways businesses can help support working parents.
“We are starting to talk to a lot of businesses around here about the opportunities of enhancing subsidies or tuition assistance for their employees,” Sproles said.
At the federal level, businesses can access tax incentives such as the 45F tax credit to help offset childcare-related costs. However, Sproles said state-level funding options — including the Best Beginnings Scholarship — are more limited.
“Even though they are not making ends meet here and they are not necessarily making livable wages, they still don’t qualify for those subsidies because the income cap is so low,” she said.
Despite the financial challenges facing both families and providers, Sproles emphasized that early childhood education remains critical.
“Having these opportunities for kiddos to be engaged in early childhood makes a huge difference in their lives,” she said. “We need to put that in the forefront of our mind too.”
For more information on Child Connect: https://greatergallatinunitedway.org/child-connect/
