Child care options for parents include in-home care, home day care, child care center and Head Start programs. Child care expense varies by location and by type of program. The age of your children also affects the annual cost of child care. For example, infant care is typically more expensive than toddler or preschool care. The money you spend on child care not only covers the cost of care, but also helps providers pay for training, activities, materials, food, insurance, building upkeep and equipment.
Step 1
Choose a child care program that meets the needs of your child and your family. The National Network for Child Care recommends that you consider the convenience of location, cost, adult to child ratio, provider's training and experience, provider's temperament and your child's personality, as well as the facility's health and safety policies. Visit the child care programs you're considering. Plan to spend a few hours on site to observe provider/child interactions and better understand the program.
Step 2
Ask for a copy of the child care program's policies and contract. Make a note of child care fees, as well as holiday closings, vacation policies and registration and/or activity fees. Ask specific questions about fee policies for holidays, the provider's vacations and your own vacations. Most day cares require full payment for enrolled children even when a child is sick or away on vacation. Holiday and vacation pay is also generally standard for child care providers, although there are some exceptions.
Step 3
Plan for child care arrangements not covered by the day care program. If you need to hire a sitter or provider to work hours or days not available through your primary provider, secure substitute care ahead of time. Agree on an hourly pay and estimate the annual cost based on anticipated hours of substitute care.
Step 4
Find out if you qualify for financial assistance with child care expense. Options include state child care subsidies, dependent care assistance programs, support from United Way and employer support, according to the National Association of Child Care Resource and Referral Agencies. Call 800-424-2246 for additional information about programs in your area and qualifications.
Step 5
Write down your weekly child care expenses, including primary care costs and the estimated cost of substitute care, if applicable. Multiply your total weekly expenses by 52, add any additional program fees required by your provider and subtract any subsidies or financial aid secured through child care assistance programs.
Step 6
Base your payment schedule on the child care program's fee policy. Most programs require payment by Monday or Friday for the current week of care. Providers also usually accept monthly child care payments at the first of the month for the current month's expense
Step 7
Consider using a flexible spending account for child care expenses. Flexible spending accounts for dependent care allow you to set aside up to $5,000 in pretax income to pay for child care, according to Kiplinger. The funds must be used by the end of the year. If you opt to pay for child care through a flexible spending account, you can't claim the dependent care credit for the same expense on your tax return. However, Kiplinger advises that paying through a flexible savings account benefits most families, noting that the dependent care credit option is more valuable for low-income families.
