Casey Lybberts 6-month-old daughter is in day care five days a week. The monthly expense is unnervingly close to what the family pays for its mortgage.
Yet, Lybbert said, they consider themselves incredibly lucky.
Having the stability of regular, all-day care at a facility that can accommodate their employees' sick days is priceless, said Lybbert, a 28-year-old advertising copywriter from Louisville, Colorado. Our home life and opportunities are getting better as a result and I'm not burning out. But perhaps we are the exception.
Lybbert and her family arent exceptions in one respect the amount of family income they pay toward child care. A recent report from Child Care Aware of America, an information clearinghouse for parents and child care providers, says child care is a potentially crippling expense. Depending on the state, the average cost of full-time care for one infant in a center ranges from 7 percent to roughly 19 percent of married couples median income. Thats often more costly than housing, food, transportation and even college tuition.
For the families of nearly 11 million children younger than age 5 who are in some type of child care arrangement, paying for child care is an unavoidable expense. But there are strategies to lessen the financial burden.
An 'overwhelming' expense
Child Care Awares study isnt the only one to document the exploding cost of child care. According to a 2014 report by Care.com an online resource for locating and managing family care 75 percent of U.S. families who rely on child care consider themselves overwhelmed by the cost. Just as troubling, nearly half say they dont take child care into account when mapping out a budget.
Perhaps, back in the day, people relied on family members more for child care, said Katie Herrick Bugbee, senior managing editor at Care.com. That, and its much more common now for both parents to be working.
A further breakdown of Care.coms findings offers little solace. For one thing, how much a family spends on child care depends in large part on their zip code. For example, a family in Dallas can expect to spend $276 a week on day care. A family who calls Boston home should gird themselves for a $664 weekly bill for the same level of care.
Not surprisingly, nanny care is no bargain, either. Care.com reports that average weekly rates for a nanny range as high as $504, depending on the number of children being looked after and the location.
Plan, then plan some more
Those numbers are justifiably discouraging. But there are ways to bring them more into line. Families who determine that child care will be a necessity should start including the cost in a family budget when they know theres a baby on the way or, for that matter, even before that day arrives.
Its smart to start saving for child care even when youre just thinking about having a baby, Bugbee said. Its the same thing you might do when starting to save for a college education.
Another strategy that can help trim the cost of child care is to maintain an expense-cutting mindset when shopping for a program or facility. Keep a sharp eye out for services and activities that, however attractive, might be somewhat unnecessary for many toddler yoga classes, an outdoor swimming pool thats only usable for a few months a year and other offerings that add to the bottom line price tag.
If you do come across a program thats both appealing and affordable, it never hurts to act quickly. Many desirable programs particularly in metro areas can command lengthy waiting lists, so be sure to put your name in once youve made a choice.
Someone told me to start looking the minute we knew I was going to have my first baby, and we still didnt get off the wait list until a year after our child was born, Bugbee said.
The nanny option
Many families for whom child care is a necessity might assume a nanny is solely the purview of the well-to-do with the resources to afford personalized attention. While the price can be steep, give some thought to sharing a nanny with a neighbor or some other nearby family with children of comparable age.
Here, simple math comes into play. For instance, a nanny who might charge $17 an hour for one child could be amenable to accepting $20 or so for two or more children from different families not to mention offering other advantages that many day cares simply cant match.
This is a win-win for many families and nannies alike, said Holly Flanders of Choice Parenting, a Hoboken, New Jersey, child care consulting service. Child care is extremely expensive, but nannies offer flexibility that day cares cannot. They also offer perks for working parents such as light housekeeping, grocery shopping, meal prep and one-on-one education.
If nanny sharing appeals, set the ground rules in advance to avoid conflict and misunderstanding down the road. For example, consider a policy that covers illness would the other family be comfortable with their kids near a sick playmate? Consider, too, vacation periods and other potential disruptions to the usual schedule.
Talk to human resources
Most families are thrilled to share the news of a baby on the way. Take that enthusiasm a step further by talking with your companys human resources department, as it can prove an invaluable stress- and money-saving resource, including:
Last, Bugbee emphasized that child care costs are not only a temporary expense but should be considered an investment in both a parents career and a childs happiness and growth. Lybbert agreed: We expect quality care for the most important person in our lives. And I've had the opportunity to get raises and advancement at work that I wouldn't have gotten if I had become a part time or unreliable employee.
Yet, Lybbert said, they consider themselves incredibly lucky.
Having the stability of regular, all-day care at a facility that can accommodate their employees' sick days is priceless, said Lybbert, a 28-year-old advertising copywriter from Louisville, Colorado. Our home life and opportunities are getting better as a result and I'm not burning out. But perhaps we are the exception.
Lybbert and her family arent exceptions in one respect the amount of family income they pay toward child care. A recent report from Child Care Aware of America, an information clearinghouse for parents and child care providers, says child care is a potentially crippling expense. Depending on the state, the average cost of full-time care for one infant in a center ranges from 7 percent to roughly 19 percent of married couples median income. Thats often more costly than housing, food, transportation and even college tuition.
For the families of nearly 11 million children younger than age 5 who are in some type of child care arrangement, paying for child care is an unavoidable expense. But there are strategies to lessen the financial burden.
An 'overwhelming' expense
Child Care Awares study isnt the only one to document the exploding cost of child care. According to a 2014 report by Care.com an online resource for locating and managing family care 75 percent of U.S. families who rely on child care consider themselves overwhelmed by the cost. Just as troubling, nearly half say they dont take child care into account when mapping out a budget.
Perhaps, back in the day, people relied on family members more for child care, said Katie Herrick Bugbee, senior managing editor at Care.com. That, and its much more common now for both parents to be working.
A further breakdown of Care.coms findings offers little solace. For one thing, how much a family spends on child care depends in large part on their zip code. For example, a family in Dallas can expect to spend $276 a week on day care. A family who calls Boston home should gird themselves for a $664 weekly bill for the same level of care.
Not surprisingly, nanny care is no bargain, either. Care.com reports that average weekly rates for a nanny range as high as $504, depending on the number of children being looked after and the location.
Plan, then plan some more
Those numbers are justifiably discouraging. But there are ways to bring them more into line. Families who determine that child care will be a necessity should start including the cost in a family budget when they know theres a baby on the way or, for that matter, even before that day arrives.
Its smart to start saving for child care even when youre just thinking about having a baby, Bugbee said. Its the same thing you might do when starting to save for a college education.
Another strategy that can help trim the cost of child care is to maintain an expense-cutting mindset when shopping for a program or facility. Keep a sharp eye out for services and activities that, however attractive, might be somewhat unnecessary for many toddler yoga classes, an outdoor swimming pool thats only usable for a few months a year and other offerings that add to the bottom line price tag.
If you do come across a program thats both appealing and affordable, it never hurts to act quickly. Many desirable programs particularly in metro areas can command lengthy waiting lists, so be sure to put your name in once youve made a choice.
Someone told me to start looking the minute we knew I was going to have my first baby, and we still didnt get off the wait list until a year after our child was born, Bugbee said.
The nanny option
Many families for whom child care is a necessity might assume a nanny is solely the purview of the well-to-do with the resources to afford personalized attention. While the price can be steep, give some thought to sharing a nanny with a neighbor or some other nearby family with children of comparable age.
Here, simple math comes into play. For instance, a nanny who might charge $17 an hour for one child could be amenable to accepting $20 or so for two or more children from different families not to mention offering other advantages that many day cares simply cant match.
This is a win-win for many families and nannies alike, said Holly Flanders of Choice Parenting, a Hoboken, New Jersey, child care consulting service. Child care is extremely expensive, but nannies offer flexibility that day cares cannot. They also offer perks for working parents such as light housekeeping, grocery shopping, meal prep and one-on-one education.
If nanny sharing appeals, set the ground rules in advance to avoid conflict and misunderstanding down the road. For example, consider a policy that covers illness would the other family be comfortable with their kids near a sick playmate? Consider, too, vacation periods and other potential disruptions to the usual schedule.
Talk to human resources
Most families are thrilled to share the news of a baby on the way. Take that enthusiasm a step further by talking with your companys human resources department, as it can prove an invaluable stress- and money-saving resource, including:
- Flexible savings accounts. These can be used to save as much as $5,000 per family to meet child care expenses. They function by withdrawing money from a paycheck before its considered income. The money is then reimbursed for eligible expenses. That helps pay for your childs care while reducing your tax bill.
- Tax benefits. Human resources can also help explain any potential tax breaks from child care expenses. You might be eligible to earn a tax credit as much as $6,000 for two children depending on your income and how much you pay for child care.
- Partnerships with nearby child care programs. Although relatively few companies provide in-house child care only 7 percent of companies nationwide offer on-site or nearby day care to employees, according to a 2014 National Study of Employers investigate other corporate-sponsored options. For example, your employer may have an agreement with a nearby child care program for reduced rates. Some companies also ask child care programs to reserve a certain number of openings for employees children.
Last, Bugbee emphasized that child care costs are not only a temporary expense but should be considered an investment in both a parents career and a childs happiness and growth. Lybbert agreed: We expect quality care for the most important person in our lives. And I've had the opportunity to get raises and advancement at work that I wouldn't have gotten if I had become a part time or unreliable employee.
