In today’s world of two-income families, childcare is becoming more and more necessary to families. The problem is that it is also becoming more expensive. Even hiring a babysitter to care for your children when you want an evening out occasionally is starting to be an unreasonable financial burden. The good news is that you can save money on childcare expenses with a little planning.
The very first thing to do is to determine whether or not you really need childcare. Many two-income families are now finding that childcare expenses take almost the entire amount of what is made by the second income. By the time taxes are taken out, and the monthly full time childcare bill is paid, there is often precious little enough extra added to the income to make it worth it, what with money spent on gas and car repairs resulting in commutes for the second wage earner and the intangible effects of such a lifestyle on the home life. Many families are now looking at the situation and deciding that the partner who makes the most money, or who has the highest earning potential, will retain his or her job while the other stays home. Some families have found that they save more in the long run after reevaluating their income needs, and whether they really are making that much.
If you realize that childcare is necessary, then you need to start taking steps to save money. Many companies now allow parents to have hours that coincide with their children’s school schedules. Find out if you can work during times when your children are at school. If there is some overflow, arrange for your children to go over to friends’ houses to play after school. You can offer to have these friends over for a few hours on the weekend or for a sleep over on occasion while the other parents go out, in order to make it more of an even exchange for the adults.
When your concern is an occasional night out with your partner, then a babysitting co-op is a viable solution. Arrange with three or four other couples in the neighborhood to work out a rotating Friday night date night. Each Friday is one couple’s turn to watch all of the kids. You can make rules like “drop off at five, pick up by ten” in order to ensure that couples in the co-op are not taking advantage and staying out all night. This works out very well and is becoming more popular. This way no one has to pay for childcare, and everyone gets two or three Fridays a month to go out without the kids.
If none of these things work for you, remember that in some circumstances your childcare is tax deductible. Before signing your child up for care, make sure your provider has a tax I.D. number and that your provider offers services that are tax deduct. Then you can save a little money on your taxes come April.