5 Tips for Saving Cash on Your Daycare Expenses

$235,000. Gulp.

Yes, that’s the newest estimate of how much it costs for a middle-income family to raise a child through age 17. And then there’s college. Whew!

After that little shocker, you deserve a reminder of how adorable and funny kids can be, so take a giggle break with the Worry ‘Bout Yo-self little lady!

How great is she?! Yep. Start sharing that one. She’s a keeper, and of course, so are your little ones.

Nothing can offset the joy you feel as you watch your little ones grow. It’s all worth it, and then some, but you already know: The monthly spreadsheet does not always look easy on the eyes.

There are some financial corners that you can cut, but there are some you just can’t. When push comes to shove, the designer labels, vacations, and dinners at restaurants can be put on hold. But when it comes to daycare, it’s impossible to rationalize putting your child in not-so-capable hands.

That said, there actually are ways of saving some cash on your daycare expenses. Exhale, and read on to 1) get your breathing back under control after seeing that figure at the top of this article, or from laughing — and 2) find great tips on how to save some of that hard-earned money.

1. Used is BETTER

Parents often purchase products to bring to the daycare centers or private homes where their little ones are taken care of. Often, they’ll buy two of the same product, so the baby can have the comforts of home while away from their familiar surroundings.

Talk to seasoned parents, and most of them will laugh and mock themselves for the hundreds (and thousands!) of dollars they spent on new baby strollers, cribs, car seats, bouncy seats, sit and stand strollers for when baby #2 arrives, pack ‘n plays, tricycles, diaper genies, changing tables, rocking chairs, infant swings, baby joggers, baby carriers, and baby stuff.

Here’s the deal: It’s a short phase! Many of these items barely get used! Hello, Craigslist, nice to meet you! You can easily find gently used baby products that truly look brand new, because — they just about are. Listen to the seasoned pros on this one: Buy used, and you’ll save so much money.

2. Uncle Sam got this one right: Take the tax breaks!

You can itemize your daycare expenses, but so many parents don’t take advantage of this deduction. Don’t miss out on this.

3. Care sharing

If you know someone who is in the same boat, there are a couple of options here. First, if you work for a company that offers flex hours or if you’re in a position to work only two or three days each week, you could take care of each other’s children while one of you works. Translation: FREE daycare. That’s a pretty price tag.

A second option might be to, again, team up with someone you know, and search for a nanny who could work for both of you at the same time. This is especially great if you only have one or two children. A seasoned nanny can handle two, three, or four children, depending upon ages, and that could work wonders for your wallet. This is a win-win; the nanny (or manny) will make more than if he or she works for just one family, and your costs will drop substantially.

4. Flex-spend account

A lot of people get slightly intimidated by flex-spend accounts, and frankly, that’s just silly. Even by the name alone, you know that it’s flexible. Press the Easy Button! You have money taken directly out of your paycheck and put into the flex-account. You then write the checks for your daycare provider, submit the receipt to your flex account manager, and immediately get that money back. What you’ve saved is about 35% in your un-taxed pay.

It’s almost hard to find a company that does not offer this coveted option anymore. It’s a no-brainer! If you can put tax-free money into a flex-spend account, and then get reimbursed (fast — often in just a day or two!) for daycare payments, DO IT. This is such a silly waste of money if you’re not taking advantage of this, and so many people don’t.

Be the smart one, and approach your employer asap if you haven’t already done so. You’ll save thousands of dollars. (And forgive yourself quickly when you’re beating yourself up for not having done this earlier.)

5. Partner up

If you have a spouse or partner who also works, look into opportunities where you might be able to alter each of your hours a bit so that there’s less overlap with both of you away from the home at the same time. Even if you can lob off 10 or 15 hours of daycare each week, that can really add up.

And if you go the distance on this one and actually work different days or shifts so that one parent can be with the child at all times — or most of the time — remember, this is just a window. As every seasoned parent will tell you, it really does go so, so fast, even if it doesn’t always feel that way! What you give up in couple time, you’ll gain back in your wallet. And that might just allow for some babysitters at night or even for a weekend away every once in a while. Quality time, not quantity of time, might be the way to save a bundle.


Valerie J. Wilson is a freelance writer for many companies and organizations. She is the proud mom of two teenagers; the days of shopping for convertible car seats are long gone. Now she just wants the convertible! (That said, she so misses those days when they were little!)

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