Making Sure My Kids Are On Track

Starting A Family? The Financial Cost Of Different Child Care Options

9 January 2017

Jackson Henry

Starting a family can be a very exciting time for many families. It can also be incredibly stressful. Before bringing a new life into the world there are a lot of details that need to be sorted through. Things like medical costs, day to day expenses, and even living arrangements are likely to undergo some major changes. There's also the issue of finding child care, which can take up a large portion of a family's budget. Here are three child care options for new families and the financial impact they can have.

Child Care Center

The cost of a child care center can vary greatly depending on location, the age of the child, and the local demand for child care services. The average cost of a child care center in the US is $11,666 per year but can range anywhere from $3,582 to $18,773. These numbers may come as a surprise to some new parents. However, a quality child care center is often worth the cost. Employees who are trained in early childhood education can help with the development of a child. Plus, children are exposed to other children in these centers, which can aid in social development.

There are also some options that may help families afford child care centers. Some workplaces offer Flexible Spending Accounts that allow parents to put aside up to $5,000 in pre-tax dollars for child care expenses. There are also tax credits and state assistance that may be able to help.

Stay-At-Home Parent

For parents who find the cost of a child care center staggering, there are other options. Having one parent stay home to provide child care is one option that can save a lot of money in certain cases. This may be the right decision if one parent has a low paying job. At times child care may cost more than the income one parent is bringing in. This is more often the case with families who have more than one child. Before making the decision to stay at home it's important to carefully consider how this can affect future earning potential. Staying home for just three years can lead to a 37 percent loss of earning power for women.

Nanny Care

Hiring a nanny may seem to be something that's only available for the affluent. However, it's an option that may be more affordable than many realize. Hiring a nanny may be a great idea for families who only require child care for just a few hours per day. The cost of a nanny can range anywhere from minimum wage to over $20 an hour depending on location and their qualifications. There's also the option of a nanny share, where more than one family shares a nanny in order to keep costs lower.

Child care can be one of the most expensive parts of starting a family. Child care centers can take up a large chunk of a family's income while staying at home can hurt a parent's future income potential. Hiring a nanny is still an expensive option. However it may be a more affordable choice if care is only needed for a few hours a day or if the family participates in a nanny share situation. 

For more information, contact local professionals like Rainbow Montessori.

Share

Search