The Cost of Living in Early Childhood Education and Care (ECCE): Financial Constraints among Low (B40) and Medium Income Group (M40) in Kuala Lumpur, Malaysia

The issue of Early Childhood Care and Education (ECCE) has lately resurfaced as a prominent concern among Malaysian. Many couples worried that they won’t be able to afford the cost of ECCE for their children with the rising of cost of living. Consequently, many couple planned to not have children or just have one or two children. Therefore, this study tries to analyse the financial stress and depression among parents from low-income (B40) and middle-income groups due to paying the cost ECCE for their children. A quantitative study was conducted on multidimensional financial stress scale consists of 20 items and eight items represent the financial ability for parents to pay for ECCE. A total of 342 responses were used in exploratory factor analysis and 387 responses were used in the confirmatory factor analysis. Correlation analysis shows that there is a positive significant relationship financial constraint among B40 and M40 parents to paying the cost of ECCE. This shows that the financial stress related to the cost living in ECCE is a real concern among B40 and M40 parents nowadays. The implications are that the government has to provide child care financial assistance such as vouchers, certificates, or subsidies and make ECCE fees more affordable to help families with low-income pay for child care.