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Saving on childcare costs by way of the 10-dollar-a-day daycare initiative

Daycare is one of the largest expenses that many Canadian families face. Sending a child to daycare can cost thousands of dollars per year. In fact, according to CIC News, the average cost of full-time daycare in early 2024 was about $7,790. Saving some of that cost would help a lot of Canadian families, particularly those that are low-income. That being said, many parents, like Monica an immigrant mother looking to enroll her 4-year-old child in daycare, struggle to find one that’s affordable.

To address the issue, the Trudeau government has created the 10-dollar-a-day daycare initiative. This program will help Canadian families cover the cost of sending their children to daycare. This $30 billion initiative aims to generate 250,000 new childcare spaces in Canada.

Overview of the program’s intended purpose.

The 10-dollar-a-day childcare program was designed to help Canadian families in 3 major ways:

Potential savings for Canadian families

Statistics Canada estimates that the cost of raising a child from birth to 18 years old is approximately $293,000. As inflation rises, the amount that it takes to raise a child increases as well.

The $10-a-day daycare program will help many families save some money for important aspects of raising children, such as building an emergency fund, saving up for college or university, and getting out of unsecured debt. Also, this program will alleviate financial stress for parents, allowing them to focus on their careers and personal development, knowing that their children are receiving affordable and quality care.

Inclusivity

The 10-dollar-a-day daycare initiative’s objective is to provide affordable and high-quality child care to every child, including those with disabilities, Indigenous peoples, and other marginalized groups. By including children from diverse backgrounds, the initiative aims to create an inclusive environment where all children can thrive and receive the support they need to reach their full potential. This commitment to diversity and inclusion ensures no child is left behind in accessing quality childcare services.

Economic growth

The rise of inflation is a large concern for many families. Canadian families are finding it harder to afford essentials like food, water, and rent. As a result of the high cost of living, many parents, choose to stay home and care for their children.

This loss in income significantly impacts their families’ overall financial well-being. The 10-dollar-a-day daycare initiative aims to encourage these parent to pursue their careers or return to post-secondary education. Monica agrees, “My family is only living off of one income at the moment and it’s pretty low. Thus, the new daycare initiative will help me get back to work.”

More people in the workforce means more money flowing around the economy, lifting the country as a whole. More people in the workforce means more cash flowing into the economy including taxes. These taxes fund vital public services like healthcare, education, and infrastructure.

The drawbacks of implementing the program nationwide

While there are many financial health benefits to the 10-dollar-a-day childcare, there are also some drawbacks and challenges to this government-backed initiative.

Waitlists

When the $10-a-day daycare is fully implemented, it’s safe to assume that the waiting list to get into a daycare will be long. Monica experienced it for herself. At one daycare she was interested in she was number 250 on the waitlist. Luckily, after some more exploring, she found a daycare that could accommodate her and was placed at number 12. Families will need to plan far in advance to secure a spot for their children in a 10-dollar daycare facility. This could create a significant level of competition and stress for parents seeking affordable childcare options.   

Daycares staying profitable

Some for-profit daycares may opt out of applying for the 10-dollar-a-day program because it reduces the amount of money they would get from fees. However, daycares participating in the program may attract more families to enroll their children, potentially increasing overall revenue for the daycare. 

Final Thoughts

The 10-dollar-a-day daycare initiative has been created with the goal of helping Canadian families in a variety of ways.

Affordable daycare helps early childhood development by offering children access to quality early learning environments. This sets a strong foundation for future academic and social success.

This initiative relieves the financial burden of childcare. As a result, more parents can re-enter the workforce or pursue further education and training. The more people working, the more household incomes can rise, saving the need for social assistance programs. Dual-income families spend more money, which boosts demand for goods and services and stimulates economic growth.

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