Introduction
Returning to work after having a newborn or needing some time off from the incessant responsibilities of childcare can be daunting.
Play & Prosper is aware of the emotions first-time parents’ experience. You want to give your child top notch care, but finding out about various daycare possibilities and their prices can cause you stress.
The purpose of this article is to provide you with necessary knowledge and tools so as to choose a childcare option that perfectly satisfies your family’s desires and budget concerns.
The High Cost of High-Quality Care
Occasionally, childcare is an enormous financial load to parents and can at times be more expensive than housing. According to NerdWallet’s 2014 research, the typical yearly price of child care for a single offspring lies within $9,100 and $9,600 nationally.
Note that the cost can vary depending on factors such as your location, your child’s age and kind of care they need.
Related Article: The Cost of Raising a Child – Budgeting Tips for the First 10 Years
Exploring Your Childcare Options
Let’s consider different ways parents can take care of their children, using the information to highlight the pros and cons of normal pricing options. This data is from reliable organizations such as Child Care Aware and Care.com.
Nanny ($565 per week)
This is a level of personalized services in which you pay someone to take care of your child at home with a specific daily schedule that he or she becomes accustomed to. They may be able to assist with light cleaning or even cooking.
Yet, this level of flexibility and tailored care often means one will be paying more than they would for daycare service or other in-home alternatives.
Au Pair ($401 per week + room and board)
Au pairs are foreigners who come from various parts of the world to look after children in exchange for some money, a place to live and to learn about another culture. It tends to be cheaper since it’s an inexpensive way for your young ones to get exposed into different cultures.
However, keep in mind that au pairs may have little experience with kids or limited availability due to visa restrictions.
Family Care (cost varies)
Using family members like grandparent, aunties or uncles to look after your child can be a good childcare solution. The child gets used to being looked after by people they are familiar with and feel safe when they are left behind at home.
In addition, this option is budget-friendly when your family members agree to help you with no cost attached; however, it is important that clear lines of communication exist between the parties involved to avoid overwhelming the caregiver.
Preschool Programs (cost varies)
Preschool programs are usually tailored for children aged 3-5 years old which provide them with education setting in readiness for kindergarten. The price varies depending on the hours of operation and schedules followed.
Note: Some preschool programs may qualify for Dependent Care FSA that we will discuss later in this article.
Finding the Perfect Fit: Considerations for Choosing Childcare
When considering childcare, certain important elements have to be taken into account, including:
● Family Needs: Your job schedule, age and behavior of your child and financial status should be considered. You also need to think about how much leeway you want and if a structured learning place is important to you.
● Location: You need to know what options are available in terms of childcare near your home. Think about how long it takes you to travel daily and consider if it might be easier for you with either a day care center or a nanny coming to your house.
● Licensing and Regulations: Ensure that any daycare or provider being looked at is licensed by the state and complies with safety regulations.
● Curriculum and Activities: It is necessary while dealing with younger children that more time should be spent on playing than socializing them. As they grow up, you may look for programs which offer proper curriculum classes with educational activities.
● Caregiver Qualifications and Experience: Make sure you ask caregiver qualifications and experience. Background checks are essential for nannies and in-home care providers so as not to put your child’s life at risk.
● Facility or Home Environment: Before making a decision, take a tour of any daycare centers or in-home daycare facilities you’re interested in. Pay attention to the cleanliness, safety measures, and overall atmosphere of the environment.
● Communication Style: Share how often you want updates on your child’s day and what communication methods suit you best (phone calls, text messages, daily reports).
Financial Assistance for Childcare
For a family, childcare can be quite expensive but there are financial assistance programs that can offer some support.
Here are few alternatives to ponder upon:
● Government Assistance: All states have put in place programs that assist the families with low income in paying for child care fees. The qualifications for such programs vary from state to state; however they considerably lower child care expenses. For further information on how to apply, get in touch with your local Child Care Resource and Referral (CCR&R) agency.
● Employer-Sponsored Benefits: Employers may offer Dependent Care Flexible Spending Accounts (FSAs), which allow you to save pre-tax funds towards child care expenses hence reducing your taxable income. Check with your HR department if a Dependent Care FSA is available and get details about contribution limits and eligibility rules.
● Tax Credits: If you have kids and require help meeting costs of their care, you could be entitled to the Child and Dependent Care Tax Credit. With this credit, you can deduct part of what you pay babysitters from the amount of taxes owed. The percentage of the credit as well as maximum possible value depends on annual income level and filing method selected. To learn more about this credit’s benefits to your household, consult tax advisor.
Related Article: The Impact of a New Baby on Taxes
Bottom Line
Parents find themselves in a big decision when it comes to the kind of childcare they choose. Assessing your family’s needs, exploring different child care options, and looking into support programs for financial assistance may help you decide comfortably that ensures your child is appropriately cared for without spending too much.