Childcare in the U.S. averages about $1,230 a month, but the exact costs depend on where you live, how often you need care, and how many kids you have. Here are six practical tips to help you manage these expenses.
1. **EXPLORE PRIVATE CHILDCARE**
Daycare centers can be convenient but are often the priciest, with little room for negotiating prices. 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 childcare allows for more flexibility in rates while still ensuring quality care if you check reviews and credentials.
2. **APPLY FOR SCHOLARSHIPS AND DISCOUNTS**
Some childcare centers and programs offer scholarships or discounts based on your income. Organizations like the YMCA or local park districts might provide these options, so apply if you qualify. Additionally, some daycare facilities offer discounts for enrolling multiple children or if you can volunteer occasionally in exchange for reduced rates.
3. **DISCUSS A HYBRID WORK SCHEDULE WITH YOUR EMPLOYER**
High childcare costs stem from several factors including state labor laws and real estate expenses. Discuss a flexible or hybrid work schedule with your employer, allowing you to work from home part-time. This can help you coordinate with your partner and significantly cut down on childcare expenses.
4. **CALL ON FAMILY AND FRIENDS**
If you have family or friends nearby who are willing to help with childcare, take advantage of their offer. Even occasional babysitting can reduce costs, especially for infants, who are typically the most expensive to care for. You might negotiate a lower rate or exchange favors with friends who also have children.
5. **CONSIDER A DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT (DCFSA) OR CREDIT**
A DCFSA allows you to use pre-tax dollars to pay for childcare for children under 13. Contributions to this account are tax-free and can be a smart way to save. Alternatively, look into the Child and Dependent Care tax credit if you pay for childcare to enable you to work. Consult a tax professional to see if you qualify.
6. **SET A BUDGET FOR CHILDCARE**
Create a budget to understand what you can afford for childcare. Compare local costs and weigh the pros and cons of different options like daycare centers, licensed home daycares, or relying on friends and family. Look at your monthly expenses to see where you can cut back, such as dining out less or canceling subscriptions.
In summary, while childcare can be a major expense, there are several strategies you can use to manage it better. Explore various options, cut back on unnecessary expenses, and plan your work schedule to find a balance that works best for your family.