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Dave Ramsey is caught off guard by the exorbitant cost of daycare when caller asks for advice

"I mean, are they going to Harvard?"

Photo of Dave Ramsey|Gage Skidmore via Wikimedia Commons – Photo of daycare|Yan Krukau via Canva

Financial expert Dave Ramsey caught off guard by today's cost of childcare

Dave Ramsey is a financial guru who is famous for creating the "envelope method" to help stay on a budget and pay off debt. Churches across America have had him come in and help their congregation with becoming debt free, so it's safe to say he's built a solid following.

People generally find his advice really helpful and swear by his methods. But in a recent episode of his podcast, The Ramsey Show, it would appear the price of daycare in America might have proven to be a bit out of his depth. A caller sought Ramsey's show out for help to figure out how to save money as he and his wife have found themselves in a cycle of borrowing money to make ends meet.

Ramsey is confused when he learns the caller makes approximately $180K a year but the confusion turns to bewildered when the man explains childcare eats up $80k annually.

Once the man adds in student loan payments, mortgage and basic living expenses, the couple struggles. Ramsey nor his cohosts seem to understand how or why the family pays that much for two children to attend daycare. The financial guru even tosses out that the couple should "find free summer camps." Ramsey's suggestions were so inaccessible that parents flocked to the comments to tell him that he may need to sit this one out.

The cost of childcare is directly related to the cost of living in the state in which you reside. Generally childcare is cheaper in southern states, but even though this is true, daycare for my child averaged just under $14K per year in the state of North Carolina. This wasn't the fanciest daycare in the small town we lived in at the time, but it was safe and developmentally appropriate, both things that were important to me and my husband. The price tag was also for one child and did not include extended care hours.

@daveramsey

This couple is spending $80,000 a year for child care. #childcare #daycare #moneytok

But the caller needed extended care and was paying for two children to attend the childcare facility. A 2022 annual report from Care.com reveals that 67% of parents spend 20% or more of their household income on childcare costs. This is staggering when compared to the 7% the US Department of Health and Human Services says marks the affordable threshold.

Care.com ranked Washington D.C. as the most expensive place for daycare, parents of infants pay about $419 per week for one child, while in Arkansas, parents can expect to pay $129 per week for daycare. The idea of free summer camp would be laughable if it wasn't something families desperately need. But Ramsey must not be aware that there isn't a such thing as free summer camp unless you qualify for a low income subsidy program. The lower cost summer programs are still pretty pricy, especially if you have more than one child and others only offer child care for a few hours.

It's no wonder parents had a lot to say, some making their own videos to show the financial consultant exactly how parents spend large quantities of money on childcare.

"Dave Ramsey should get on three-way calls with childcare facilities to find his callers cheaper alternatives," one person writes.

"Free summer camp?! Where? We even had to pay a few hundred for half-day day camp at the YMCA for my kid," another commenter questions.

"I’m in Massachusetts and the average around us is $400-500 per kid per week for full time daycare. It’s not affordable," one mom explains.

@sheisapaigeturner

There is a childcare crisis in our country. The cost of childcare is astronomical. The cost of childcare is typically the biggest financial burden for a family with young children. The cost of childcare is rising at a faster rate than any other expense for families. People like Dave, pretending that this isn’t happening is wild to me because it is documented that this is indeed the cost of daycare. Dave should not be giving advice unless he’s well-versed in the topic. ##daveramsey##childcarecrisis##childcare ##daycare##daycarelife##millennialmom##workingmom

Paige, a mom that lives in Massachusetts took to social media to explain that it did in fact cost $20K-$26K a year in her state to send a child to daycare. In the caption of her video she explains in part, "There is a childcare crisis in our country. The cost of childcare is astronomical. The cost of childcare is typically the biggest financial burden for a family with young children. The cost of childcare is rising at a faster rate than any other expense for families."

Maybe this is news to Ramsey, but to people raising children outside of rural areas, the cost of the caller's childcare makes sense. There is a childcare crisis in America and many parents are finding themselves in an insurmountable hardship with seemingly no end in sight.

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The 7 most terrifying wishes on Trump's 'wish list' budget bill.

​The Trump administration just released its proposed fiscal year 2018 budget, and well...

The document outlines billions of dollars in cuts to dozens of popular social programs that previously have enjoyed bipartisan support while simultaneously pumping an equal and opposite number of billions into defense.

Some analysts argue we shouldn't be too concerned. After all, they say, the budget isn't and probably won't be policy. It's just a "wish list."

Even some Republican legislators say the document is "dead on arrival."

But if it is indeed a "wish list," what are its architects wishing for?

Having read the proposed budget, I can only imagine their requests went something like this:

1. "Fairy godmother, please slow down cancer research and make it so more Americans get heart disease."

Photo by William West/AFP/Getty Images.

The authors of the proposed budget wish to cut funding to the National Cancer Institute by a whopping $1 billion and funding to the National Heart, Lung, and Blood Institute by $575 million.

That's a really weird wish! Moreover, it directly conflicts with the wishes of the millions of Americans with cancer and cardiopulmonary conditions and their relatives who wish not to die — or watch their family members die — from those diseases. And they probably wish their government could help them out a little bit in that regard.

2. "Genie, I wish that fewer poor people were able to see a doctor..."

The budget proposal includes a wish to slash over $800 billion from Medicaid, which covers over 75 million families.

Those 75 million families have wishes too. A recent Kaiser Family Foundation poll found that 42% of Trump voters say Medicaid is "somewhat" or "very" important to them. Their wishes probably include not having their kidney disease, hepatitis, or multiple sclerosis treated in an emergency room simply because they can't afford private health insurance.

Those wishes won't be granted if Medicaid goes away.

3. "...and while you're at it, make it harder for them to attend college, too!"

Image via iStock.

If this budget is enacted, many low-income students will see their subsidized loans eliminated.

It turns out, thousands of Americans who don't have rich parents wish to be able to attend college without years, or even decades, of being buried under crippling personal debt. If they lose that ability, it won't matter how much they pull themselves up by their bootstraps since eliminating those loans is like tying their bootstraps to a refrigerator taped to an anvil double-bolted to a neutron star.

4. "Oh, all-seeing stone, won't you put our diplomats overseas at considerable personal risk?"

If the Trump administration gets its wish, the State Department would lose 31% of its budget.

That's something Sen. Lindsay Graham believes could lead to American foreign service officers dying on the job — or, "a lot of Benghazis in the making," as the senator told The Washington Post.

That's something Graham — and those American foreign service members and their families — definitely wishes won't happen.

5. "Kindly wizard, let's cut back on providing health care to sick kids."

Image via iStock.

Oh, also, the budget reduces funding for the Children's Health Insurance Program (CHIP) — which makes it easier for 5.6 million working-class kids to see a doctor — by 20%.

Like rich kids, non-rich kids wish to be able to go out and play and scrape their knee without being charged hundreds of dollars for antibiotics. The ability to just be a kid would be imperiled for millions of them if the Trump administration gets its budget wish.

6. "Bridge troll, we have answered your riddles three. Now we wish to take food away from families struggling to make ends meet!"

Families who depend on the Supplemental Nutrition Assistance Program (SNAP), aka food stamps, wish to continue feeding their families — a wish that could be denied by the proposed budget cuts that would take nearly $200 billion from the program.

An analysis by The Washington Post found that families with more than four children could fare even worse because the budget would cap benefits at the maximum amount currently allotted to a family of six.

7. "And last but not least, we wish we may we wish we might turn a blind eye to climate change tonight! Glow, magic monkey's paw, glow!"

Image via iStock.

For the polar bears who wish not to have their habitats eliminated, the coral that wishes not to be bleached, and the residents of coastal cities who wish not to have their homes slide into the sea forever, the budget merrily would ax EPA funding by 31%.

That's not going to help anyone if — and, as is becoming more inevitable, when — the flood waters rise.

The only way to stop these bizarre budget wishes from coming true is if ordinary people don't let them.

The good news: Regular folks have gotten pretty good at resisting in the last few months — hitting up protests, town halls, and their elected representatives' phone lines with the gusto usually reserved for a Madonna reunion tour or a Patriots Super Bowl loss.

Freeing up money for tax cuts, most of which will likely go to rich people, may be the wish of some in government. But that's not a wish shared by most Americans. And Americans now have a lot of practice having their say.

If this budget is truly dead on arrival, that's cool! But we can't just wish it is. Call your congressman or senator to make sure what's dead stays dead.

Bibbity-bobbity-freakin-boo.

Family

If you're under stress, self-care is essential. Here are 5 ways to do it on a budget.

True
Cigna 2017

Self-care has become a trend across internet media in the past few years. But here's the problem: It's inaccessible for a lot of people.

Yes, self-care is a super-important and essential part of maintaining a healthy lifestyle. It’s backed up by science, doctors recommend it (in fact, doctors themselves should do it!), and, frankly, it's hard to fault taking care of yourself.

So what's the hang-up? Most resources on the topic are targeted toward people who have time and money to spend on self-care. For people in lower income brackets, it’s understandably very frustrating to feel like self-care relies on your ability to pick up a glittery bath bomb at the mall.

We can't all be you, my friend. Image via iStock.

It’s doubly upsetting because self-care is even more important for people who experience high stress levels for long periods of time. People who are most at risk for burnout are the ones who need self-care and preventive health care the most. Research shows that family caregivers are at a much higher risk for depression, alcoholism, and chronic illness when they attend to the needs of others at the expense of their own.

The good news is that self-care — real self-care, not the superficial trend — isn't about money. It's about prioritizing and setting boundaries.

Self-care isn't a specific set of activities like massages, manicures, or other seemingly luxurious expenses. It's about doing what's necessary in order to prioritize your needs above others' wants.

Audre Lorde said it best: "Caring for myself is not self-indulgence, it is self-preservation."

So it may not be feasible to come home from work and spend loads of time and cash on setting up an at-home spa. But taking a little time to do what makes you feel good and keeping an eye on indicators of your health such as blood pressure, Body Mass Index (BMI), cholesterol, and blood sugar is essential to keeping you healthy and, in turn, keeping everyone that you care for healthy, too.

You can do plenty of self-care at the dollar store: pick up some bubble bath, light a cheap candle, or treat yourself to a new nail color. Image via iStock.

Here are five ways to prioritize self-care on a low salary:

1. Work in teams.

When you work full time (or even more than that) and are supporting a family, it can be nearly impossible to get even a moment alone. So work in teams — coordinate with your spouse, siblings, coworkers, friends, and community to help you arrange some free time. Offer to watch another mom's kids in exchange for a night off next week. Even as little as an hour can rejuvenate you.

2. Focus on intention, not luxury.

The thing that makes self-care valuable isn't how much it costs — it's about making a plan to do something for you and following through. Pick something that you do already and find a way to make it a mini-event. Take a walk alone in the sun during lunch. Plan to make your favorite dinner next week. Stop at the library and rent a movie you've been wanting to see.

Public libraries are an awesome resource for free stuff. In addition to books and movies, some also offer classes and events for adults and kids alike. Image via iStock.

3. Don't let others guilt you out of it (or into doing something else!).

There will always, always be something that someone else is asking of you, but it's important not to feel selfish for putting aside time to take care of yourself. Giving all of yourself to others isn't a sustainable lifestyle for anyone, and you'll be useless to yourself and others once you're all burned out.

Plan a walk during lunch, and don't let anyone persuade you to cancel on yourself. Image via iStock.

Self-care can include saying "no" to things, too! You may feel obligated to take care of your family's basic needs, but beyond that, you have every right to refuse to do something that gets in the way of doing you.

4. Remember to make time for doctor appointments too.

Self-care isn't just about stress — it's also about keeping your body and mind healthy. Make time to see your doctors regularly (before a health issue arises!) and be sure to check your four health numbers so that you can take steps to prevent disease early. Make your hygiene a habit that you refuse to break. See a mental health professional when you're having a hard time. You, your mind, and your body deserve basic care and respect. So remember: Go. Know. Take control.

Making time for your medical and mental health is essential. Image via iStock.

If you don't have health care coverage, research free medical and dental clinic options in your area. You can also find resources for locating affordable mental health services in your area.

5. Keep it simple.

Don't get overwhelmed by the idea of having to plan yet another item into your routine. Self-care is about what makes you feel good — not what others say you should do.

It's not selfish to make self-care a priority. You can't keep others healthy if you aren't healthy yourself.

Learn more about how to take control of your health at Cigna.com/TakeControl.

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19 things that happen when the government shuts down.

On May 2, 2017, President Trump tweeted that maybe what the government needs is "a good 'shutdown.'"

It would be to "force a partisan confrontation over federal spending," according to The New York Times — as if the American government were a kid who needs a timeout. But that's just not how government works. When politicians can't get their act together, the rest of the country suffers.

How do we know this? Because in 2013, it did shut down. For 16 days. It, uh, wasn't great. If you (and the government) need a reminder of what's at stake, here are 20 things that happened to real people because of it:

1. Furloughed government employees were forced to take part-time jobs.

One U.S. Capitol employee took a job as a middle-school janitor, according to the Washington Post. Another family had to lay off a reading specialist they hired for their autistic son. At its peak, the shutdown put about 850,000 government jobs on hold.

2. National parks closed.

Photo from David McNew/Getty Images.

According to the Los Angeles Times, Cleo Tung and Matthew Locascio had to reschedule their wedding after the government closed Yosemite National Park. Another group was told their reservation to raft down the Grand Canyon — a plan 18 years in the making — wasn't going to happen.

3. National wildlife refuges closed too. Officials had to cancel a wild pony roundup on the Virginia coast.

Each year, workers round up the wild ponies on Assateague Island, conducting vet checks, giving immunizations, and collecting and selling new foals. The event had to be cancelled because the national wildlife refuge was closed. The same park closure also stopped a yearly peregrine falcon survey.

4. Outdoor-dependent businesses near the parks and refuges suffered greatly.

Closing Kenai National Wildlife Refuge in Alaska cost fly-fishing guide Fred Telleen thousands of dollars, the Washington Post reported, and closing Zion National Park in Utah cost the Zion Park Inn tens of thousands of dollars, reported The New York Times.

5. If Americans thought they'd hit a museum instead, tough luck. National museums and monuments were closed too.

Photo by Spencer Platt/Getty Images.

The shutdown affected the Smithsonian museums and national monuments such as the Statue of Liberty and the Lincoln Memorial.

6. But it didn't stop 92 veterans from visiting the World War II Memorial.

The Mississippi Gulf Coast Honor Flight veterans dodged barricades to tour the temporarily closed site.

7. And this red-blooded American helped mow the Lincoln Memorial's lawn.

Photo from AP Photo/Manuel Balce Ceneta.

Chris Cox from South Carolina took it upon himself to mow the lawns and empty the garbage cans on the National Mall. He refused donations, saying the point was to send a message to the government.

8. Meanwhile, 50,000 North Carolina families were left without baby formula.

The shutdown locked about 50,000 families in the state out of the Special Supplemental Nutrition Program for Women, Infants, and Children, which provides vouchers to low-income moms and families.

9. Homeowners at Lake Mead were told to vacate.

Joyce and Ralph Spencer, whose home is located on government land, were given 24 hours to find new accommodations, according to the Washington Times.

10. $4 billion dollars worth of tax refunds were delayed.

Tax refunds aren't just a nice bonus — they're money that's legitimately owed to workers and families. Checks had to be delayed because of staffing issues at the IRS.

11. Farmers' planting plans were thrown into disarray.

When the government shut down, it stopped providing insurance rate and price predictions to farmers. Combine that with a frozen-at-the-time farm bill, and it's understandable why farmers like Val Wagner said they were having trouble planning the next year's crop.

12. Potentially life-saving clinical trials got all scrambled up.

The shutdown furloughed about three-quarters of the National Institutes of Health's staff, putting a freeze on new clinical trial enrollments. About 200 patients a week had to be deferred, wrote the L.A. Times.

13. Alaskan crab fishermen were idled on the docks, waiting for NOAA permits.

Crab fishermen depend on the National Oceanic and Atmospheric Administration to set quotas and issue licenses. The shutdown meant the crews had to sit around waiting.

14. New airplanes were delayed.

Photo by Saul Loeb/AFP/Getty Images.

JetBlue and US Airways couldn't get new Airbus planes because the Federal Aviation Administration had furloughed the workers who certify them for flight.

15. In Daphne, Alabama, a domestic violence shelter had to ask the city for emergency funding.

A victim of domestic violence at a safe house in 2010. That year, domestic violence shelters in California experienced a similar crisis due to a state budget crisis. Photo by Rich Pedroncelli/AP.

The city came through with funds for the The Lighthouse, but not all shelters were so lucky. The White Buffalo Calf Woman Society, which serves the Rosebud Reservation in South Dakota, said they had to turn at least four people away.

16. Native American communities lost big.

In Fort Yukon, Alaska, for instance, the political brouhaha shut down jobs, scholarships, and aid programs.

17. Asylum-seekers' cases were delayed or frozen entirely.

A Congolese doctor, applying for U.S. asylum after he spoke out about human rights atrocities, had his case frozen. The already backed-up system became even slower after courts shut down, a situation one lawyer called "a nightmare."

18. An investigation into Dartmouth College's sexual assault policies ground to a halt.

The college was under investigation after students complained the college hadn't been reporting or prosecuting sexual violence on campus. The shutdown paused the investigation.

19. Government workers grew beards.

With nothing else to do, furloughed employees grew beards and posting them on social media, leading to what must be one of our country's lowest moments: the creation of the #ShutdownBeards hashtag.

Ultimately, the 2013 shutdown cost the country about $24 billion.

According to the Standard & Poor's rating agency, the shutdown ended up draining $1.5 billion a day from the American economy.

So no, Mr. President. A government shutdown isn't a good thing.

Photo by Mark Wilson/Getty Images.

These are just a handful of the shutdown's effects. From passport applications to airplane accident investigations, we depend on the government to do its job. When politicians play games, real people get hurt.

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