Finding a balance between income and childcare costs can be difficult. The price of childcare is rising, and parents often find themselves struggling to afford care for their children while they work.
Fortunately, there are options to consider when trying to save money. Below, we’ll discuss 12 tips to finding affordable childcare that may be of assistance.
- Budget - As with most financial goals and savings necessities, figuring out your budget is essential. When you know exactly how much you have going out and coming in financially, it can sometimes clear a way for affording something that you previously thought was unaffordable. Doing this before checking out childcare options will give you the confidence of knowing exactly where you stand.
- Check into Dependent Care Account Options - Check with your employer to see if you can open a tax free dependent care account. You should have this option if your employer similarly offers a flexible spending account. With a dependent care account, you can set up to $5,000 aside tax-free and utilize it to pay for camp, preschool, and daycare.
- Child Care Tax Credit - When you pay for childcare out of pocket, you can itemize up to $3,000 per child in those expenses per year on your taxes. This tax credit caps at $6,000 per family.
- Utilize Family Resources - Do you have family nearby? Try asking to see if anyone is available to assist in childcare! Grandparents don’t often mind!
- Au Pair Services - Au pair programs are when you can host a foreign national for a year. Au pair participants will study while in the US, while also providing childcare. Your au pair would live with you during the scheduled year and take care of your children, while you provide room and board and a stipend in return.