Childcare is one of the most expensive costs for families. Statistics show that childcare costs have increased 200% from 1990 to 2015. The average cost of childcare ranges from $6,000 to $20,000 a year depending on where you live and how old your child is. Luckily there are ways to save money on childcare. You just need to know where to look and be ready to sacrifice some luxuries. If you’re a parent planning on working or going back to work soon, read through this list of ways you can save money on childcare. It may not be easy at first, but your kids are worth it.
Find Free or Less-Expensive Childcare Services
Before you start slashing your budgets, make sure you’ve exhausted all free resources. Check your local community college or university, as many offer childcare services for students and professors at a discounted rate. If you work for a company with a child care assistance program, make sure you’re taking advantage of it. There are also many online resources that offer free childcare. You can try websites like Sittercity or Care.com. You can also ask around and see if any of your friends have extra space at their house that they’d be willing to rent out.
Set Up a Dependent Care FSA
While you won’t get a huge chunk of change back, you will still save some money. If you’re planning on taking a break from work, or if you’ve recently had a child and will be going back to work, you’ll want to set up a dependent care FSA. You can do this with your Human Resources department or your financial advisor, and they’ll help you navigate the process. A dependent care FSA will allow you to set aside a specific amount of money that can be used to pay for childcare. You’ll be able to claim a tax break on this money, so it’s an excellent way to save a bit of cash.
Make Your Own Childcare Food to Save Money
Food is one of the biggest costs associated with childcare, so it makes sense to start there. You may be able to negotiate with the daycare provider to have less prepared foods, but you can also save money by making your own snacks. Try making your own trail mix, granola, or chips. If you have a young child, you can make homemade purees. While it may seem silly, it can really help you save money when it comes to food expenses.
Send Your Kid to a Free After-School Program
Many school districts offer free or discounted after-school programs for working parents. Most schools will have this information available on their websites, and you should definitely check there first. If your school district doesn’t have anything available, you can also check with your local YMCA or Boys and Girls Club. All of these organizations offer free after-school programs, which is incredibly helpful for working parents.
Adjust Your Housing Situation
This one may seem obvious, but it’s worth a mention. If you own a house, you’re probably paying a mortgage. If you’re struggling with childcare costs and don’t have the extra funds to pay for it, you may want to look into refinancing your mortgage to lower your payments. You can also consider moving to a more affordable neighborhood. If you’re living in an expensive area, you may be able to find a less expensive neighborhood that still has good school districts.
Take Advantage of Travel Times
This one may not apply to everyone, but if you work for an airline or have a long commute, you may be able to take advantage of travel times. Try taking advantage of that time by having your child join you in the car or on the airplane. This will allow you to use their time productively while also paying for their childcare. This is a great option if you’re a parent who likes to be productive while traveling.
Conclusion
Childcare costs have increased massively in the last few decades. In order to save money on childcare you need to be creative and try new things. You can also ask your family and friends for help if you need more options for childcare. And don’t forget about your options if your child is ready to transition out of childcare. You can look into extracurricular activities that are cheaper than sports. You can also take advantage of free activities offered by your town or city. With these tips and tricks, you should be able to save money on childcare. Pair this with other money tips like asking for a raise at work to supercharge your earnings and savings!