Simple Tips To Optimize Your Child Care Budget

The childcare expenses have turned overwhelming, with about 75% of the Americans surprised by the costs; according to a recent survey of Care.com an average family spent about $18,000 per year on child care. Childcare expenses constituted a bigger share of income than even food and housing and most young parents are not even aware of the tax breaks for childcare expenses.

Talking of simple tips to optimize your child’s care budget it would be best to have a look at some of them:

If your employer offers you a flexible spending account or FSA, you could set aside $5,000 of your salary before taxes to use for child care expenses; this would save an average family of $2,000 per year.  

Next you could ask your employer's human resources department about benefits like child care reimbursements that could help you get a nanny or back-up help.   

You could get child care tax credit that allows you to itemize up to $3,000 in expenses per child, per year on your tax return up to an annual cap of $6,000.

You could go in for subsidized care depending on your income level; ask providers if they could offer fees based on income.

It helps to know the reasonable rate in that particular area; talk to neighbors and friends that engage childcare providers. It would help to also find out if caring for one child made a difference.  Also find out about the rates charged by all childcare providers to find the best that suits your budget and also provides quality needed.

Engaging professional caregivers like nannies definitely provides quality, but they may be expensive; it would definitely be a good deal when there are 2 children or one goes for nanny shares. Nanny shares could be availed of by parents with the same age children or a combination of school age and preschool children where the costs are split either 50/50 or according to the hours the children are looked after.

Day care centers are more affordable than a nanny, though this option could leave your child with less attention and you with less flexibility. A slight alteration of day care centers that is affordable is home day care providers where one or few caregivers watch a group of kids in their own home. However home day care centers are not tax deductible and could be pricey if the provider is sick and alternate care has to be arranged.

The other child care options are babysitting coop with other parents and blended care. Blended care helps to use your free nursery hours for pre-schoolers that is combined with grandparent care or by altering your work patterns. It helps to take advantage of the free care that is available to set the foundation for schooling and also give them some precious time with the older generation.

To conclude choosing the right child care is not just a financial decision, but one of emotion and lifestyle; research and choose an option that is realistic to your budget that would suit your entire family.

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