Ways to Help Manage the Cost of Childcare
Raising children is a lot like managing a three-ring circus. While watching them learn and grow is the greatest show on earth, it’s not without challenges. Juggling the demands of work and joys of family time, while still carving out much-needed adult time, is no small feat. Throw in financial responsibilities and the rising cost of childcare—and many families find themselves walking a tightrope to stay on track and on budget.
The good news is there are strategies, programs and different childcare options that can help you find the right balance to make quality childcare more affordable.
Evaluate Your Childcare Needs
Before you get too caught up in the cost of childcare, it’s important to identify the type of care that best fits your family’s needs. Are you looking for full-time daycare? You have various choices including daycare centers, in-home daycare providers and nanny services. For a more flexible part-time solution, you might consider a drop-in childcare center, parent’s day out program and babysitters for date night. Or perhaps you need after-school and summer care for your school-age kids. No matter what type of childcare you choose, each option has its own offerings and costs to compare.
Start Early and Create a Childcare Budget
So, how much does daycare cost? According to Care.com, the weekly price of daycare for one child averages $321 (up 13% since 2022). That’s why it’s never too early to start planning and saving for it. Even if you don’t need childcare just yet, the sooner you can create a budget and begin allocating money for it, the easier it will be to implement it when you need it. Once you’ve identified the type of childcare you’d like to explore, you can begin researching costs in your area and comparing options. To create your initial childcare budget, use your overall household budget as a starting point. This will help determine how much you can realistically plan to spend on childcare given your income and financial obligations. Don’t get discouraged if you are initially over budget. Use this budgeting exercise as an opportunity to re-evaluate your options and explore creative ways to reduce spending in other areas to cover childcare costs. You may also want to consider, if you can, slowly starting to put aside funds for college. This could help make it more manageable when the time comes.
Ask About Employer Benefits for Daycare or other Childcare Services
Your employer may offer childcare benefits, such as dependent care flexible spending accounts (FSAs) that allow you to use pre-tax dollars to pay for childcare services. Some employers even have on-site daycare facilities or partnerships with local childcare providers. And it’s always a good idea to get advice on childcare from other parents at your workplace. Take advantage of these workplace benefits to reduce your out-of-pocket childcare expenses.
Share or Trade with Other Parents
We all know raising children takes a village. So, why not collaborate with other families in your community to share a nanny and split the costs? This can give your children more consistent, reliable care in a home setting. You could also consider joining (or forming) a babysitting cooperative in your neighborhood. With a larger group of local parents, you may be able to arrange a no-cost exchange for babysitting services.
Keep it in the Family
Hiring grandma or grandpa to watch your child can be a mutually beneficial arrangement. If they’re retired and on a fixed income, they’ll appreciate the extra money (and the extra time with their grandchild). And you’ll have a trusted, more affordable caregiver in your home or theirs. The key is to establish ground rules up front and keep communication open.
Depending on where you are in your respective careers and future goals, it may make sense for one parent to stay home with the kids or adjust their career path for a certain time period. This is especially true when childcare costs are close to or higher than one parent’s income.
Research Government and Non-Profit Programs
You may qualify for income-based childcare subsidies. Look into affordable childcare programs that may be available in your area through government agencies or nonprofit organizations.
The Bottom Line
Remember, the cost of childcare can vary greatly depending on the type you’re considering and where you live. As a ringleader for your family, it’s important to do your due diligence on each childcare option you’re entertaining. The more you know, the better informed your decision will be. Visit each facility, interview providers and staff, get references and talk to other parents in the community to find a childcare solution your family can feel good about.
Having more affordable childcare may also free you up to provide better protection for your family’s financial future. At Gerber Life, we can help you select the life insurance policy that best fits your growing family’s needs and budget. Call us today at 1-866-503-4481 to speak with one of our dedicated representatives, or you can get a free quote online.
