OPINION: Universal child care can lead to more educational opportunities

New Mexico’s first-in-the-nation universal child care policy came into effect last month.

This new initiative will provide new, and possibly significant, opportunities. Many details still need to be worked through; child care providers have expressed implementation concerns related to this new policy, such as pay rate minimums and care center staffing. Statewide capacity constraints present another challenge. These concerns are serious and deserve close attention in this effort.

Yet, when the trade-off between paying for child care and saving for education is no longer a worry, the impact on educational attainment for families has the potential to be tremendous.

It’s well documented that higher education — whether trade school, professional degrees, postsecondary credentialing and certification programs, or apprenticeships — creates growth for individuals and families.

But pursuing higher education has become more and more costly — often rising annually at a pace greater than general inflation. One year of college can cost, on average, nearly $30,000 for a full-time, in-state student at a public four-year university. Financial aid has been decreasing at the same time.

Issues like intergenerational poverty and adult literacy are directly related to educational attainment. New Mexico must continue to strive toward improvement in both areas.

For thousands of New Mexican families, juggling child care and supporting the educational dreams of themselves and their children has been a real challenge. According to the New Mexico Early Childhood Education and Care Department’s most recent cost estimation report, child care can cost as much as $2,919 per month.

In fact, New Mexico is one of 38 states where infant care is more expensive than public college tuition. The average annual cost of infant care tops $14,000 in our state, higher than the listed annual rent cost.

How can a parent choose between saving for education and paying for safe care for their child?

Universal child care could mean parents no longer have to make that choice.

When child care becomes universal, it provides financial relief to parents, giving them the time and financial freedom to begin saving for their children’s education, or pursuing education themselves.

The major benefits of higher education, like increased earnings potential and more job opportunities, lead to significant downstream effects, too.

Better educated parents who earn higher incomes can help build stability and wealth for their families. Working at a job that’s aligned with one’s personal goals boosts confidence. When children see their parents fulfilled, their own outlook for the future brightens.

This isn’t merely a hopeful story, however. It’s part of broader momentum in New Mexico.

Last year, our state recorded the fastest median family income growth. We also came in third in terms of median household income growth.

Universal child care can accelerate this trend, when more opportunities to save for and invest in education are unlocked for families across New Mexico.

In addition to universal child care, New Mexico has excelled in other ways. Scholarship opportunities and the generous state-incentivized 529 education savings plan lay a foundation that universal child care bolsters.

The Education Plan is our state’s official direct-sold 529 education savings plan offered by The Education Trust Board of New Mexico, which provides a valuable tool for parents to begin saving for their or their families’ educations.

Thanks to a slew of new allowances, like expansions for many authorized postsecondary programs and K–12 expenses, different generations can reap the tax-advantaged benefits of setting aside funds for education.

New Mexico’s bold universal child care policy creates unprecedented potential for families in our state. Saving now means families can realize that potential and unlock educational opportunities that span generations.

Natalie Cordova is the executive director of the New Mexico Education Trust Board, the state agency responsible for administering The Education Plan, New Mexico’s official direct-sold 529 education savings plan.