Are Daycare Expenses Draining Your Wallet?

Children can be life-affirming. For many parents, having a child gives them a purpose in a way they may have never experienced before. Suddenly you are responsible for the well-being of another person -- and that person comes with needs, from food to diapers to clothes, which translate into expenses that not everyone can afford.

For working parents, child care costs can be a huge burden. According to a report by Care.com, in 2023 “The average weekly child care cost for one infant child is $230 for a family care center, $321 for a daycare center (also referred as ‘child care centers’), and $766 for a nanny.”

The cost of child care can be difficult to manage, regardless of your situation. If both parents work full time, they may earn more money to help make ends meet. If you are a single parent who works, then you may have to deal with the disadvantage of having a full-time work schedule without a second household income. If you have more than one child, the cost of quality child care are even higher.

The bottom line is this: you want your child to have the best possible care, but you shouldn't have to take out a personal loan to cover the cost. We spoke to several experts to help brainstorm more affordable child care options,or cost-saving methods, so you can save money.

Talk to your employer

If you are a parent and work outside of the home on a full- or part-time basis, you will likely find it difficult to accomplish everything you have to do in a given day without a child care provider. The balancing act of being both a stay-at-home parent and a working parent are tricky, but if your employer is the understanding type, they may appreciate the needs of young children.

“Your employer will likely not allow you to start working from home full-time,” says Lynell Ross, a Health and Wellness Coach at Health & Harmony Wellness Coaching. “However, don't just assume they'll outright shut down any ideas you have. In fact, a lot of my clients have found their employers to be quite receptive to flexible schedules. For example, one of my clients now works in the office from 9 AM to 1 PM but then is allowed to work from home from 2 PM to 5 PM.”

If you can successfully place your child on a sleep schedule, you can work in the morning while your child is still sleeping. If you cannot work from home the entire day, any money that you do not have to use to pay a babysitter or child care program can make a difference, especially for low-income families.

Ask work about child care savings programs

As long as you’re talking to your employer, find out if they offer a dependent care reimbursement program. Dependent care reimbursement programs are similar to flexible spending account (FSA) programs, serving as a combination of a savings account and income tax relief program.

With a dependent care reimbursement program, you can designate a portion of your salary to pay for child care assistance. The money is put aside before taxes are taken out of your paycheck, allowing you to save for an existing expense while also limiting the amount of money from your paycheck that can be taxed. Your take-home pay may look lower at a glance, but remember: the money you set aside for childcare is waiting for you, tax free.

Friends and family

If you are fortunate enough to have a family member who lives nearby with time on their hands, it may be possible to minimize daycare costs. According to a study we just made up, the average cost of infant care from overjoyed grandparents is about $0 per week (minus any food they may eat from your fridge).

Unfortunately, not everyone lives close to relatives who are able and willing to devote time to babysitting. Even if you do, they may not be available all the time. This is when looking out to your network can help. “Moms who need to find quality and affordable childcare should consider starting their own childcare co-op,” advises Shannon Serpette, chief editor at Mom Loves Best.

Serpette explains that a childcare co-op is “A group of women committed to providing babysitting services to each other’s children. Think of all the mothers and grandmothers in your life who are great with children -- ones you know would take good care of your child. Let them know you’re starting a co-op and you’d like them to join.”

Serpette has said that her co-op has been a “lifesaver,” so it could be an option if you can manage with less than full-time care.

Child barter system

Bartering is one of the oldest forms of human interaction, and it can help save you money on childcare. No, we are not talking about bartering your child away entirely. We are talking about providing some sort of service to the daycare in exchange for a reduced tuition bill.

“If you have a specialized skill, you might be able to barter services with your child care operator,” Ross says. “For example, if you're a dental hygienist, consider giving your child care operator free cleanings in exchange for a reduced child care fee. If you're a web developer or graphic design expert, propose building your child care operator a more functional and optimized website in exchange for a reduced rate. You never know what kind of trade people will be open to.”

Financial assistance and scholarship options

It can’t hurt to ask if your daycare service provider offers a reduced rate for financial hardship. Some day care programs have scholarship or grant programs for families that may have trouble covering tuition. In Chicago, for example, the Jewish United Fund offers a grant of up to $2,000 for families that enroll their children in a qualifying early childhood program. Depending on where you live and your income, you may also be eligible for government-sponsored fee assistance or other options.

No part of having children is easy or cheap, but we hope these suggestions provide ideas for finding some financial relief.