Skimm Money: The Child Care Cliff, Emergency Cash, and Small Biz Credit Cards

How the news affects your finances.

The Child Care Cliff

Child care in the US is officially in trouble. On Saturday, funding from the American Rescue Act of 2021 ran out, which could leave 3.2 million kids without spots at daycare centers. It also means working parents’ finances are poised to take a hit as child care providers raise their rates. Hint: Providers have been relying on that federal funding to pay their rent and improve their workers’ compensation. Without access to affordable child care, moms — who are currently employed at record-high numbers — could potentially be pushed out of the workforce.

Your move:

• Tap into your 9-to-5 benefits. Your employer’s HR department can tell you if child care resources are included in your benefits package. Think: Paid parental leave or access to a dependent care flexible spending account. Reminder: Don’t forget to leverage your partner’s work benefits, too.

• Explore other assistance options. Programs like Head Start and state-funded pre-kindergarten can be options for families struggling to afford child care. Requirements for each program vary, so be sure to double-check the details when looking up what government assistance you may qualify for. 

• Share the load. Unconventional child care options, like “mommunes” or co-op child care networks are something to consider. Arrangements like these allow parents to share the burden of child care costs with other families.

One way we can all use theSkimm to spur change is to shed light on how the child care crisis is playing out in women's lives. To do that, we're asking you to #ShowUsYourChildCare. We would like to hear how you are coping with the child care cliff, and what it's costing you. Let us know by filling out this form. Thank you in advance.

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Some experts say it’s a good idea. But how much should you have stashed away?

The average mortgage rate has hit a 23-year-high…

And first-time buyers are feeling the financial pressure.

Is that bad feeling at work burnout or exploitation? 

For many working Black women, it could be both.

A “mandatory” after-work happy hour?

Hard pass.

Things like student loans or credit card debt can get in the way. Check out our articles, podcasts, and expert advice to start managing your debt.

The Wall Street trends to know this week.

Good news: The US gov avoided a shutdown that had investors feeling nervous. The bad news: Higher interest rates — plus the still looming possibility of a future gov shutdown — led to a slight dip in stock prices this morning. Other uncertainties: Rising oil prices and student loan payments restarting could mean that October will be a rollercoaster for investors. Buckle up.

Small step now, big payoff later.

Sign up for a small business credit card.

If you're self-employed, level up with a small business credit card. Rewards at places like office supply stores and gas stations (hey, biz-related travel) can help you save $$$ on operating costs. Plus, when tax season rolls around, having a biz-only card can make tracking your expenses a breeze. Pro tip: Apply for a small business credit card via the same company that handles your personal card. That way, you can pool your rewards and bonuses (when possible) to make your points go even further.

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