How to Save on Childcare
Many families have a love-hate relationship with childcare.
On the one hand, childcare enables parents to work. I probably don’t need to remind anyone why this is important. Life, and especially life with a young family, can be bloody expensive. But there are other benefits as well. Childcare can allow you time to run errands, work out or meet friends. Simply being able to schedule your time as you need is a big plus.
On the other hand, childcare itself is bloody expensive. In many places, the cost of daycare is like an additional rent or mortgage payment added to your monthly budget. For some families, when you add up all income, commuting and work expenses, it may make better financial sense for a parent to stay at home with the kids.
You may find yourself lucky and live in a place like Quebec where daycare is capped at $8-22/day, depending on income. But for the rest of us, how can we reduce our daycare bill?
Here are tips to save on childcare, regardless of where you live.
1. Start early
It has happened to many families. You find an amazing childcare spot and then realize you should have put your name on the waiting list months ago.
In some places, you have to put your name on a waiting list when you find out you’re pregnant. That is how early you need to sign up.
The best thing to do is ask other young moms in the area on their experience with childcare waitlists. Better yet, make a few calls to prospective daycares and ask them when they recommend signing up and what you need to do.
You may find that you’ll have to put your name on a central list managed by the city AND the individual daycare’s list.
2. Consider all the options
One of the mistakes people make is to think in a limited way. The decision is an either/or. Should we do a daycare centre or a home daycare?
In reality there may be many more options, especially if creativity is applied.
The following are some options to consider as well as potential costs or savings per child, or unless otherwise indicated.
Daycare centre – a daycare centre is usually regulated and reliable to be open. There are staff to cover if a teacher is off/sick. Monthly costs for fulltime: $1200-1800
Home daycare – this is usually a less expensive and more flexible option. It may be licensed or unlicensed. You should also have a backup plan if the provider is sick. Monthly costs for fulltime: $700-$1200
Preschool / cooperative – Usually these schools are half-days and often you can choose 2-3 days/week. Many coops have a component where a parent has to donate time of 1-2 days/month, which helps keeps costs low. Monthly costs: $150-400
Nanny – a nanny can be live-in or simply come at a scheduled time. You may find someone local or go through an agency that brings a foreign nanny to your country. This option is great for flexibility or if you have multiple children in childcare. Monthly costs for fulltime: $2500-5000/month/family
Nanny-share – similar to a nanny, but the nanny is shared by 2 or more families. Therefore the cost is shared in the same way. Monthly costs: $800-$2500/month/family
Au Pair – an au pair an international live-in nanny looking to get work and life experience in your country. They are usually young women and commit to staying between 6 months and 2 years. Families pay minimum wage for time worked minus a room and boarding allowance. Monthly costs: average $1700/month/family
Friend-share – similar to a nanny-share, but the nanny is you and a friend! You share who takes all the kids on which days or times. Monthly costs: negligible
Grandparent Childcare – if you have a grandparent (or other relative) living closeby who is willing and able, you may be able to have them care for your little one while you work. The key words are willing and able. Monthly costs: negligible or as agreed
Grandparent helps with drop-off/pickup – another option is to have a grandparent, aunt or other family member help with drop-offs or pick-ups to daycare. This may enable you so need less hours at daycare and save money. Monthly savings: $200-600/month
Optimizing parent work schedules – if one or both parents has a flexible schedule or the the ability to choose when they work, you may be able to have one parent home at all times or enable shorter times in childcare. Monthly savings: $200-600/month or possibly more
In all cases, you have to look at the impact to your budget, lifestyle, mental sanity, relationships.
3. Leave as many options open as possible
One thing that drove me nuts about daycare is you only find out a couple weeks, sometimes days, in advance that you have secured a spot. So much for planning ahead!
That is why it’s important to keep as many options open as possible – and for as long as you need it. If you don’t find a solution you’re happy with right away, continue to stay on lists until you find one that you do. If your work situation changes, you may also need to change your childcare arrangements.