If you’re the parent of an infant, and you need safe and affordable childcare, you will have a challenge ahead of you. In fact, according to the U.S. Bureau of Labor Statistics, 56% of families with infants and toddlers stated that finding childcare is complicated. All parents may feel some apprehension about entrusting their child’s care to someone they don’t know, and childcare costs often compound that difficulty. Here are some things you may want to consider when trying to find an affordable caregiver for your infant.
1. Know What to Look For
When searching for the right childcare center, you should ask about their staff-to-child ratio and check the facility for cleanliness. Look at the schedule for a mixture of individual and group activities, and be sure the center encourages some time outdoors. After all, according to PBS, outdoor activities that include digging and planting soil improve children’s moods and relieve any anxiety they may feel.
2. Ask Family Members First
Many parents seeking infant care ask a family member to help them. If one family member can’t assume full-time responsibility for your baby’s care, a few can form a family care circle for your baby. In such cases, you may only have to pay for gas to drive to and from the caregiver’s home.
3. Use a Company Childcare Center
You may be lucky enough to work for a company that has an onsite child care center. Alternatively, some companies will contract with nearby childcare centers, for which you may pay a discounted price. In either case, many companies offer an FSA (flexible spending account) with which you can set aside up to $5000 of your paycheck to pay for childcare expenses. Those funds aren’t subject to payroll taxes, which can save you a significant amount of tax money.
4. Share a Nanny With Other Families
If you know other families in your neighborhood seeking child care, but you can’t afford the total cost of a caregiver, you could split the price of one caregiver with those other families. This may also allow you to swap childcare duties with those other families on the weekends. If you hire a nanny independently, they can be considered a household employee. Ask an accountant to help you discover how to offer your nanny non-taxable compensation, which may save money for everyone involved.
5. Don’t Forget Your Tax Credit and Earned Income Credit
When it’s time to pay your income tax, don’t forget to take the federal childcare tax credit. According to Care.com, you can itemize up to $3000 in childcare expenses per child (or $6000 per family), which can save families about $600 per year. The same website encourages you to see if you qualify to apply for the EITC (earned income tax credit), which provides a tax credit for parents with low to moderate incomes.
6. Gather Childcare Options Before You Need Them
If you’re expecting a baby and planning to go to work soon after the baby is born, you should optimize the months before the baby’s birth. If your baby is arriving via surrogacy, that process may take 12 to 13 months, and you can invest some of that time in reviewing childcare options. This is the time to thoroughly examine your options and visit any childcare facilities you are considering. In some cases, searching in advance may be necessary due to popular childcare facilities having a waiting list.
If you’re still searching for options that fit your budget, look around for local nonprofit programs that may offer child care. Your church may offer a child care center, which can provide the advantage of a faith-based program. Childcare solutions differ for every family, and time will tell which situation will be best for you and your baby. Here’s hoping you find an affordable solution that works for you.