There’s no doubt about it: finding affordable and trustworthy childcare options is one of the biggest challenges facing many working parents today. What can you do in order to reduce your childcare costs? Having a baby can be a huge financial stain on first-time parents, and many don’t realize how many affordable childcare options there are out there. Here are some tips for finding ways to save money with different childcare options. Some of these may seem like common sense, while others may force you and your partner to make some hard decisions.
Financial aid can help you subsidize childcare costs
There’s no getting around the high cost of child care in the United States. In some cases, you may find yourself paying more for child care than your rent or mortgage. There is some help to be found with financial aid. Take advantage of flexible spending accounts offered by your employer, such as the dependent care account. These accounts allow you to save pre-tax dollars specifically for such things as day care and elder care. You can save thousands in taxes each year by taking advantage of these flex spending accounts. If you pay for child care expenses with your after-tax dollars, you can take advantage of the Dependent Care Tax Credit on your income tax return. You can claim from 20% to 35% of up to $3,000 for one child.
Check with you child care center for ways to offset costs
Some child care centers are willing to work with their parents to help offset costs. If you are having trouble keeping up with payments, talk to your child care center before things get worse. Let them know your financial situation and see if there are things you can do in order to offset your child care costs. Volunteering, donating goods or other kinds of contributions are sometimes an acceptable way of offsetting your child care bill. Some child care centers have the resources and information to refer you to government agencies that can also help with grants and financial aid.
Offset costs with family help
Traditionally, extended families have always been around to help offset the cost and responsibility of child care. If you are fortunate enough to have caring and supportive family members, see if they can help you with child care. Many couples or single parents work with their relatives to coordinate a child care schedule that works for both parties. Of course, you should do your best to compensate your relatives for this care.
Do you have a flexible work schedule?
Many parents rearrange their work days in order to take care of their children. With some finagling and juggling, many parents can reduce their day child care costs significantly by flexing their work schedules.
Start a home business or telecommute
With today’s advanced technology, it is easier than ever to work from home. If you or your partner has the option of working from home, take advantage of it. Even if you can only finagle a couple of days of telecommuting a week, this will still give you a great advantage. If there is simply no way that you can bring your work life home, consider starting a sideline business that can help you cope with the high costs of day child care.
Use student child care
If you are located near a college or university, there is a good chance that you can find adequate child care close to home. Many students charge less for their services than a professional day care business. If you are looking for a nanny, consider hiring from an au pair service.
