Childcare in the U.S. typically costs around $1,230 per month. The actual amount you’ll spend depends on where you live, how often you need childcare, and how many children you have. Here are six practical ways to manage those costs.
While some families might end up paying $500 or more per week, those costs add up quickly. Many parents start to question whether it’s worth both parents working or how to make childcare affordable.
If you want to save on childcare, there are several options available if you’re willing to be flexible and creative. Here are six strategies to help you manage your childcare expenses.
1. CONSIDER PRIVATE CHILDCARE
Daycare centers are convenient but often the most expensive. Many have set rates that don’t allow for much negotiation. Instead, look into private childcare options like experienced babysitters or smaller, licensed home daycare providers. Websites like Care.com or SitterCity can help you find local providers. Private care often allows for negotiating rates, without sacrificing safety or quality, as many private providers are licensed and insured. Be sure to check reviews.
2. APPLY FOR SCHOLARSHIPS AND DISCOUNTS
Some childcare centers and organizations, such as the YMCA, offer scholarships that can help reduce costs. These are usually based on income, so if you qualify, it’s worth applying. Additionally, some daycares offer discounts for enrolling multiple children. You might also be able to negotiate rates by offering to help out occasionally.
3. TALK TO YOUR EMPLOYER ABOUT FLEXIBLE WORK HOURS
High childcare costs are partly due to labor laws, real estate, and staff expenses. Ask your employer if you can work a hybrid schedule, splitting time between the office and home. This flexibility could help you save money by reducing the number of hours you need paid childcare. Some companies might also allow flexible shifts, enabling you and your partner to coordinate your work schedules.
4. RELY ON FAMILY AND FRIENDS
If you have family members nearby who are willing to babysit, take them up on it. This can significantly reduce costs, especially for infants, who are the most expensive to care for. You might also negotiate lower rates with friends or family members who can help with childcare. Additionally, consider swapping childcare duties with friends who have kids.
5. USE A DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT (DCFSA) OR TAX CREDIT
A DCFSA allows you to use pre-tax dollars to pay for childcare expenses, which can save you a lot of money. If you’re eligible, consider setting up an account to cover costs for children under 13. Also, look into the Child and Dependent Care tax credit if you pay for childcare to allow you to work. A tax professional can help you determine if you qualify, and the credit can help offset your childcare expenses.
6. CREATE A CHILDCARE BUDGET
A budget can help you determine what you can afford. Compare local childcare options and discuss with your partner the pros and cons of each—whether that’s a daycare center, licensed home daycare, friends, family, or a babysitter. Look at your monthly expenses to find where you can cut back, even temporarily, to make childcare more affordable. Be realistic about what you can truly manage.
To summarize, managing childcare costs requires a close look at all your options, flexibility, and perhaps negotiating a different work schedule. Start planning and saving early to accommodate your family’s future childcare needs.