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Read previewThe financial well-being of American parents with young children is plummeting, highlighting how unaffordable childcare costs have become. Advertisementathima tongloom/Getty ImagesThe percentage of parents with children under 18 who felt "okay financially" dropped from 69% in 2022 to 64% in 2023. Data from the Federal Reserve shows that parents haven't felt this financially insecure since 2015, when it recorded 65%. "The median monthly amount that parents using paid care paid for childcare was $800. Business Insider estimated that it could cost parents nearly $26,000 a year to care for one child in 2024 — a 41.5% increase from 2016.
Persons: , athima, haven't Organizations: Service, Federal Reserve, Household Economics, Decisionmaking, Business, of America, New Zealand Locations: United States
But a "soft saving" trend is emerging among younger workers, challenging the traditional way of thinking. Soft saving refers to putting less money into the future, and using more of it for the present. "Soft saving is the soft life's answer to finances," said the report. In addition, Americans are "re-focused" on post-pandemic travel, a possible reason why there is a decrease in personal saving rates, said Fidelity's Viktorin. ""Soft saving is the soft life's answer to finances."
Persons: Gen, Athima, , Ryan Viktorin, Gen Z's —, Liz Koehler, Koehler, Viktorin, Andy Reed, X, Boomers, Z's, Z, Gen Z, Fidelity's Organizations: Intuit, Fidelity Investments, BlackRock's, Wealth Advisory, CNBC, U.S . Bureau, Trading Economics, Blackrock, Vanguard, Transamerican Center, Retirement Studies, Retirement
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