Childcare is a significant component of the high cost of raising children. Interestingly, in some states, sending an infant to daycare can be pricier than college fees for an adult child. As per the National Association of Child Care Resource & Referral Agencies, the yearly average cost of U.S. daycare centers is $11,666, equivalent to $972 monthly, but fees can range from $3,582 to $18,773 annually. It is disconcerting to know that childcare often outweighs the expenses of housing, college tuition, transportation, and food in many family budgets. Even in two-income households, childcare costs can be daunting. If you’re ‘feeling the pinch’, here are five practical ways to curb childcare expenses.
1. NANNY SHARING
Nannies often come with high costs for their individualized care and flexibility, but have you ever considered a two-children nanny arrangement? You could consider sharing a nanny with another family, splitting the cost while ensuring your child continues to receive personalized care.
2. CHILD CARE SWAPPING
Why not commence a mom-based childcare network? I’ve connected with numerous moms with similar aged children through local Facebook mom groups. Swapping childcare duties with some of them can be an effective way to save cost if your work schedules differ.
3. DAYCARE CO-OP
In a daycare or preschool co-op, parents play a significant role in the caregiving efforts. By volunteering to perform certain duties like after-school pick-up or facility upkeep, you can drastically reduce costs. The typical cost for preschool in our area is $800 a month, while a co-op can be between $100 to $300 per month. If both parents are working, most schools permit grandparents or another caretaker to participate. A quick google search can help identify such co-ops in your vicinity.
4. DEPENDENT CARE ACCOUNT
Numerous employers provide a Dependent Care Flexible Spending Account where pre-tax money can be set aside for childcare expenses. The average savings from such accounts is nearly 30% on eligible spendings like preschool, summer camp, after school programs, and naturally, daycare.
5. IN-HOME DAYCARE
If your schedule lacks flexible hours and traditional care is a requirement, in-home daycare options, typically cheaper than daycare centers, are a good idea. Always ensure thorough research to find the best surroundings for you and your child.
While entrusting your child to daycare isn’t simple for most parents, the cost shouldn’t dictate your child’s level of care. With some resourcefulness, you can discover a monetary situation that suits both you and your child. How do you strategize to save on childcare costs? Or do you cut corners in other areas of your budget to accommodate childcare costs?
