Paying for Child Care on A Budget

This is an article that I found on Yahoo Finance.

Onsite day care — it’s the serene ideal so many parents pine for.

The reality, of course, is that it’s often not available and stricter budgets are forcing moms and dads to scramble for new ways to manage child care costs.

For Jamie Lichtenstein, that means putting her 15-month-old son in a small day care run out of a nearby home. Two days a week costs $140. A traditional day care she looked into charged $2,000 a month for full-time care.

“Financially, it didn’t make sense. I would’ve used my whole paycheck,” said Lichtenstein, a 34-year-old post doctoral fellow at the Harvard School of Public Health.

She also joined a local group in Cambridge, Mass. that swaps chores like child care, home repair and baking in lieu of payment. It’s an additional resource she uses on the evenings when she and her husband go out.

Such creative measures might be necessary in the hunt for cheaper child care. Other strategies to consider include requesting flex time at work and rallying a team of parents to rotate baby-sitting duties.

It might take some juggling, but the effort will be worthwhile given the steep price of child care.

Across the country, average annual prices for full-time care for a toddler range from $3,400 a year in Mississippi to $10,800 in Massachusetts, according to the National Association of Child Care Resources and Referral Agencies. Nationwide the average annual cost is $6,700.

If such prices have no place in your budget, here are some ways to save.

CONSIDER CARE ALTERNATIVES

One alternative to traditional day care is family child care. These are small operations run out of homes by stay-at-home guardians looking to earn extra money.

The family child care home Lichtenstein uses, for instance, only has two other children.

As with any outside care you employ, ask for references and what credentials or experience the provider has. For family child care, licensing and regulation vary from state to state.

In Massachusetts, for instance, providers need at least a year’s experience caring for children. Homes also need to meet safety and space guidelines and can generally take on no more than six children.

Regardless of where you live, one way to assess a home is to bring your child along for a visit.

“You can tell a lot by that. If the provider is warm and nurturing, the children will just melt into her,” said Linda Geigle, executive director of the National Association for Family Child Care, an advocacy group based in Salt Lake City.

The YMCA also offers affordable child care at around 10,000 sites across the country. Costs vary depending on the region. As a reference point, the YMCA in Akron, Ohio charges $155 a week for full-time care for a 4-year old. Part-time care, or two days a week, is $80. Select centers also offer subsidies for low-income parents.

If you employ a caregiver at home, consider switching to an au pair to dial back spending. Unlike nannies, au pairs work for room and board instead of a salary. Most au pairs are college students, however, so their work week is often capped at 20 hours.

LOOK INTO COMPANY BENEFITS

Flex time and telecommuting can help cut back considerably on child care expenses.

Couples might even be able to stagger shifts so someone is always home with the kids.

Before you approach your boss about a special work arrangement, however, consider the level of trust you’ve built. You might want to wait a few months to broach the topic if you’re still relatively new, said Steve Williams, director of research at the Society for Human Resource Management, an industry group based in Alexandra, Va.

Once you get the green light, don’t let your boss regret the decision.

“It goes both ways; you have to be flexible too so your schedule doesn’t cause a disruption to the organization,” Williams said.

So if there’s an important meeting one week, make it into the office even if it’s inconvenient.

Many large companies also offer tax-free spending accounts to care for a dependent. The benefit typically lets workers set aside up to $5,000 to cover costs such as child care.

Last year, 84 percent of large companies offered spending accounts for dependent care, according to business consulting firm Mercer.

Onsite day care, meanwhile, is usually only available at corporate headquarters, said Suzanne Riss, editor-in-chief of Working Mother. That means the vast majority of U.S. workers don’t have access to it.

MOBILIZE THE VILLAGE

When all else fails, enlist your network of family and friends.

There might be a retired grandparent or stay-at-home mom in your circle willing to watch the kids a couple days a week. Even if you pay a small fee, it will likely still be cheaper than a day care center.

“People are really starting to embrace this notion that it takes a village to raise a child,” Riss said. “Parents are calling on friends, family, neighbors and forming informal cooperatives.”

Think of it as a throwback to the days of yore, when the larger community played a central role in tending to the kids.

For instance, a small group of families might want to pool their resources and split the pay for a group nanny. Or parents with flexible schedules might eliminate the cost of a caregiver altogether by taking turns babysitting.

To get started, engage other parents in conversation next time you’re at a school function or picking up your kids from soccer practice. Check Web sites such as Meetup.com to see if there are any parent groups in your area.

Coordinating this type of grass roots care will no doubt take some effort. Once you settle into a routine, however, the savings will be worthwhile.

More importantly your children will have in place a safety net of friends and families as they move through their adolescent years and beyond.

The complete article can be found at Yahoo Finance.