One of the hardest things to do as a parent is to leave your child in someone else\u2019s care so that you can go back to work.\u00a0 Sometimes, preparing for the cost of that care can be nearly as difficult.\u00a0 Some care centers can cost more than in-state tuition at a university.<\/p>\n
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More than sixty-five percent of American children have two working parents and many children will be in a child care program for much of their youth.\u00a0 More than twenty percent of the family\u2019s income can be\u00a0 spent on child care over the course of the year and this cost can greatly influence career decisions.\u00a0 Forty-two percent of American families rely on a relative or relatives to care for their children.\u00a0 This can have a\u00a0 significant upside — allowing for one-on-one care with a familiar caretaker, often in a familiar environment and relatives can often provide a more flexible schedule.\u00a0 One down-side is that utilizing a relative for childcare can put a strain on inter-family relationships.\u00a0 In many cases the relative(s) taking care of the child are grandparents and the increasing mental and physical demands of a growing child came become too much.<\/p>\n
Hiring a nanny or an\u00a0 au pair can be a good option.\u00a0 It offers many of the same advantages as relative care, with mostly flexible hours, in-home care and one-on-one attention, however, it is important to note that hiring a nanny or an au pair is not necessarily as straight-forward as it seems.\u00a0 These types of caregivers are often the most expensive, since\u00a0 parents will become the employer.\u00a0 This\u00a0 means conducting interviews\/background checks\/reference checks, preparing a contract, paying household employer taxes, potentially providing benefits, and arranging for back-up care if the nanny or au pair is ill.\u00a0\u00a0 It is costly, but\u00a0 often you get what you pay for , as over fifty percent of nannies or au pairs have a degree in early childhood development or other child-related fields.\u00a0 This may provide your child with a more educational or well-rounded experience.\u00a0 In some cases,\u00a0 if you work it into the contract, many will provide light housework in addition to childcare.<\/p>\n
If you do not have a relative near-by or willing, and a nanny or an au pair is out of your price range, many parents opt for using an organized childcare facility.\u00a0 These centers provide licensed and sometimes accredited places where children have the opportunity to experience things outside of the home and socialize with other children in their age groups.\u00a0 Many centers include education, field trips and other programs that may be of interest to you and your child.\u00a0 These centers can be quite costly as well, and in-home daycares are often more affordable.\u00a0 In home daycare is usually limited in age and number of children\u00a0 to be cared for and are\u00a0 subject to different regulations.\u00a0 They may not hold the same level of licensing or accreditation as larger centers or private care.\u00a0\u00a0\u00a0 The state generally regulates the ratio of children to adult caregivers based upon age of the child.<\/p>\n
There are several tax benefits to paying for childcare, since working parents are eligible for a non-refundable tax credit of between twenty and thirty-five percent of their child-care expenses up to $3,000 per year for up to two children under the age of thirteen.\u00a0 This credit is limited by the amount of income made by the parents and parents making less than $15,000 a year qualify for the highest bracket of thirty-five percent, with the percentage dropping every additional $2,000 until it reaches twenty percent at $43,000 a year.\u00a0 The Dependent Care Flexible Spending Account is an employer sponsored account that allows the parent to pay for up to $5,000 per household per year of child-care expenses with pre-tax dollars.\u00a0 This means that a portion of the parent\u2019s wage is taken out prior to being subject to federal, state, Social Security and Medicare taxes.\u00a0 Keep in mind that you cannot claim both benefits for the same child care expenses.<\/p>\n
When looking at childcare options, it is important to first determine your budget.\u00a0 How much can you spend on childcare?\u00a0 How will that change with one or both parents able to work?\u00a0 Be sure to look into what savings options your employer(s) may have and if your employer has an FSA plan, calculate out how much you can set aside.\u00a0 If your employer doesn\u2019t have a plan, see what child care credits your may be able to take advantage of.\u00a0 Do the research by interviewing the various childcare options in your area and seeing what may then fit into that budget.\u00a0 Give yourself plenty of time, as this is a big decision and one that shouldn\u2019t be rushed.\u00a0\u00a0\u00a0 If you do choose to hire a nanny or au pair, make sure you understand the regulations that you must follow when adding a household employee.\u00a0\u00a0 Determine if full time or part time care is what you need, of if you can work a flexible schedule that allows for a few longer days but reduces the need for a full week\u2019s worth of care.\u00a0 See if you have friends with children of similar ages that may be interested in sharing a caregiver.\u00a0 Look into seeing if you can work remotely a few hours or days a week.\u00a0 Or perhaps find a side hustle that allows for extra cash without overtaxing your resources.<\/p>\n
Childcare is a situation full of emotional and financial pros and cons.\u00a0 It is important to enter into the decision making process fully armed and ready.\u00a0 You should invest in a care system that works best for you and your family, while still providing the hours that are needed at a cost that works.<\/p>\n","protected":false},"excerpt":{"rendered":"
One of the hardest things to do as a parent is to leave your child in someone else\u2019s care so that you can go back to work.\u00a0 Sometimes, preparing for the cost of that care can be nearly as difficult.\u00a0 Some care centers can cost more than in-state tuition at a university.<\/p>\n","protected":false},"author":6,"featured_media":905,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"yoast_head":"\n