How To Budget For High Childcare Costs
If you think everything costs a bit more these days, you’re not wrong. And “a bit more” is likely an understatement.
Take the cost of childcare. According to a Care.com survey, 63% of parents say childcare is now more expensive than it was just a year ago. Daycare and babysitting costs have jumped between 5% and 15%, while nanny costs have risen 20% since 2020.
While the expense has skyrocketed, there are still ways to prepare for high childcare costs or adjust your budget to reflect the price increases. Here are a few tips for budgeting for the new normal of high childcare costs.
Simple Ways You Can Budget Your Childcare Expenses
Figure Out What You Can Afford
Break out your budget — and if you don’t have one already, looming high childcare cost is a good reason to start.
Look at your monthly expenses and income and come up with a realistic figure for the childcare cost you can afford or see where you can make some cuts to be able to afford the type of childcare you’d prefer.
A good place to start making cuts is among the nonessentials. When childcare cost is a priority, your best bet is to reduce your spending on such items as travel, entertainment, eating out, and more. For the time being, you may have to set those expenses aside in favor of childcare.
Explore Your Options
While overall childcare cost has risen, the actual cost varies from city to city and state to state. Familiarize yourself with the average childcare cost in your area as well as the childcare options.
Does your town only offer large childcare centers or are there sometimes less-expensive private daycare operations, usually run out of someone’s home, to choose from? Is it more or less expensive to go with a nanny? Childcare costs may also depend on the age of your child.
Think About What Can Work Best For Your Time And Money
Rising childcare costs have led to some families deciding to commit to one parent staying at home, eliminating, or largely decreasing expenses. If it’s easy to live on one parent’s income, that may be a good option.
There could also be a middle ground by having parents split time in the office and working from home or having one move to part-time work. This allows either full-time childcare at home or saving cash by being at home a few days a week to provide daycare.
Reach Out To Family Or Friends For Help
If you’re lucky to have family close by, they may be great options to either cover childcare entirely or offer at-home care for part of the week. Check with family members to see if they can help for even just one or two days during a workweek.
Another alternative is getting together with other parents you trust to split childcare costs. This typically is done by having parents rotate between days hosting children at home and providing care there at either low or no cost.
Look For Financial Assistance
Many state and federal programs help with childcare costs for those who qualify. Such programs are usually available for those families considered low income, for households with a parent who is in college or working full time, or for a foster care family.
Employers may also offer their grants to help employees cover childcare costs, either by offering at-work daycare services or such plans as a Dependent Care Flexible Spending Account, which lets employees save money from their paychecks to cover childcare costs.
Consider Installment Loans Online
Budgeting for high childcare costs can be challenging, and sometimes a little extra help is needed, especially when you’re facing a financial emergency.
Delaware Title Loans, Inc.’s online signature installment loans are an option for short-term assistance paid off over time in set installments. Those who qualify may receive up to $1,500 and get the cash they need the same day or the following business day. It can take as little as 30 minutes to qualify.
It’s easy to get started. Head to our homepage and fill out the installment loans online form. One of our representatives near you will give you a call to answer any questions you may have about installment loans online and guide you through the rest of the easy process.
Once you bring the required items to a Delaware Title Loans, Inc. location near you, the items will be verified and there is very simple paperwork to fill out. Once you are approved, you get the cash you need quickly.
Get Started Today!
High childcare costs have left many strapped for cash. If you’re in the process of budgeting for childcare and need a little extra help, consider installment loans online from Delaware Title Loans, Inc. Start online, give us a call, or visit one of our locations near you today.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.