Childcare is necessary for most families, but it can be incredibly expensive. Whether you're opting for daycare or an in-home nanny, footing the bill is a stressful cost for much of the nation. Even though the average childcare worker in the U.S. makes just $11 an hour, many two-income or single-parent families face spending the majority of their paychecks on this bill alone. Here are a few simple ways to save more money for childcare costs.
Did you know that you can get money back on your taxes simply for being a parent? If you aren't already taking advantage of this common credit, you're leaving money on the table. Leveraging your child and dependent care tax credit is a great way to put money toward your childcare deposit or your caregiver's salary. Even if you only need periodic babysitting, you could be eligible for this tax break. In order to find out if you qualify for this tax credit, take a look at the specific criteria required by the IRS.
In-home childcare is typically a luxury privilege for wealthy families to provide one-on-one care for the kids. But, there is a less-expensive way to gain access to live-in childcare. Hosting an Au Pair is a cultural exchange in which a person from another country exchanges room, board, and language immersion for basic childcare. Au Pairs are typically young adults with little to no formal job experience, and it's expected that they become more of a family member and less of an employee. If you decide to go this route, consider going through an Au Pair agency to ensure that you're going through the process correctly. Hiring an Au Pair usually requires additional documentation compared to hiring a U.S. national, such as a visa and residency permit. Although there is a bit more paperwork and red tape involved with hiring someone from abroad, an Au Pair typically earns a fraction of the salary you can expect to pay a full-time, live-in nanny or babysitting from your home country.
If you're struggling to pay for childcare because of a recent injury, illness, or other pay cut there might be financial help available from local or federal sources. Most of the time, these services are available to state residents who make less than 200% of the poverty income limit in their local area. This criteria is based on data at the state and community levels. For those in need of immediate income assistance, consider heading to the local career services center or social security office to see what is available to you based on your unique situation.
Many childcare facilities require a deposit to hold the child's spot for the next term. If you're short the amount needed to secure your child's place, consider taking out a loan to cover the cost. You don't even have to take a hit on your credit report to obtain fast financing. Since the loan amount is determined by the car's value and not the borrower's credit score, applicants can skip this step. An auto title loan is a great solution for families that need quick cash without having a hefty downpayment on hand. Simply search for “loan places near me†to find the best title servicer in your local area.
Did you know that you can get a nanny who also helps with the dishes and laundry? Or dual school that covers learning and play equally? If you want to make the most out of this investment, consider getting more bang for your buck. If you prefer to have a personal nanny or babysitter, take care to discuss their duties and expectations in detail from the start. You might be able to cut hours from your weekly routine if the nanny is able to handle household tasks like:
If you're already paying for any of these services, you might be able to reduce the bill by making a deal with your child care provider. If nothing else, you can reallocate the time you save each month to take on a part-time job. Childcare is a stressful topic, but it doesn't have to be. Putting away a few dollars here and there can work wonders for this part of your budget, but making these changes can help your household to secure childcare that fits in with everyone's lifestyle.
