Two-child household needs nearly a half-million dollars a year for child care, study finds

A two-child household must earn more than $400,000 a year to keep child care costs at or below the federal affordability guideline (no more than 7% of income), according to a new study by LendingTree.

The average income of a two-child household is about $145,656, the online lending marketplace reported.

Child care is significantly more expensive in states such as Hawaii, Nebraska and Montana, where families would have to triple their income to meet the affordability guideline.

The LendingTree study shows racial disparities among Black and American Indian families, who would need much higher incomes relative to their current earnings.

Analysts say that the high cost of child care is contributing to declining birth rates in the United States and that addressing the issue will require significant policy and business action.