Financial strain in households with young children
Key points:
- Half of surveyed families report material hardship.
- Parents express widespread job insecurity and financial concerns.
- Parents describe the essential role of public benefits in supporting their family.
- Financial stability is associated with healthy child development and family well-being.[1]
This issue brief presents average rates of affordability challenges and financial strain among surveyed families with children under age 6 from August 2025 to January 2026. (Note: Stanford Center on Early Childhood issue briefs, like this one, report current RAPID national survey data on key early childhood issues for policymakers, updated twice annually.)
Basic needs are out of reach for many families
Job insecurity is part of a larger pattern of financial strain. Families face material hardship when they struggle to afford basic needs like food, housing, utilities, child care, and healthcare. On average, about half (53%) of surveyed families reported material hardship. In open-ended responses, families described these strains. A New Jersey parent said, “My husband and I both have professional careers and make what many would consider to be good salaries, but the cost of living is so high.”
Public benefits provide crucial support
On average, 15% of families surveyed reported using public benefits and an additional 9% intended to apply for public benefits or were waiting for a decision on their application. A parent in Washington said, “Our social and financial safety nets [are helping the most right now].” Parents described public benefits as essential to meeting their family’s needs while noting that maintaining access to these benefits is sometimes challenging. A parent in Louisiana shared, “My Medicaid was up for renewal last month, and it was a very stressful time with them telling me that I made too much a month, even though I really don’t make that much. Same with my SNAP renewal.” A parent in New York shared, “My state ran out of federal funding for child care and I have no idea what to do. No one cares and no one has answers.”
In spite of high employment rates, parents report financial stress and job insecurity
On average, 80% of the more than 5,000 surveyed parents worked full-time or part-time, 9% were stay-at-home parents, 2% were unemployed or laid off, and 2% were furloughed. Despite this high employment rate, parents expressed widespread concerns about job instability and financial insecurity in their written responses to open-ended survey questions. A parent in Ohio said, “I am worried about my job being eliminated next year due to state funding issues.” A parent in Virginia described “fears of the job market, getting laid off.” Parents who identified as contract and gig workers (4%) faced particular uncertainty. One parent in California explained, “While I have found work after becoming unemployed, my job is as an independent contractor. Less than half what I made before. I’m hopeful I will be ok, but it’s not guaranteed.”
Conclusion
Basic needs are out of reach for many families, and parents worry about job security. Published, peer-reviewed research from the Stanford Center on Early Childhood shows that having financial stability is associated with parents’ ability to provide caregiving conditions that support children’s healthy development and overall family well-being.[2] These data underscore the urgent need for policy solutions that increase affordability and economic stability for families with young children.
Sample description
This analysis on RAPID data is based on responses collected from 5,121 caregivers between August 2025 and January 2026. These caregivers represent a range of voices: 24.3% are Black, 28.1% are Latinx, and 29.5% live below 200% of the federal poverty level. We weight data to reflect the real-time makeup of U.S. families with children under age 6.
Definitions
Supplemental Nutrition Assistance Program (SNAP)
[1] Liu, S., Mazzaferro, M., Raikes, A., & Fisher, P. (2026). How does environmental unpredictability embedded in systemic and interpersonal contexts predict early childhood development and psychosocial outcomes? An ecological examination. Manuscript in preparation.
[2] Liu, S., Curenton, S. M., Sims, J., & Fisher, P. A. (2024). The promotive and protective effects of parents’ perceived changes during the COVID-19 pandemic on emotional well-being among U.S. households with young children: An investigation of family resilience processes. Frontiers in Psychology, 14, Article 1270514. https://doi.org/10.3389/fpsyg.2023.1270514