How To Reducing Childcare Costs

By: Cornie Herring

Next to rent or mortgage payments, childcare often ranks as the second-highest expenditure in a household budget. Working couples can pay a whopping 10-20% of their incomes on childcare while their children are small. Seeing the high cost needed to be expensed for their children childcare, some couples decided to take a better financial sense for one parent to take a few years off to stay home with the baby.

But a little inventive planning can save you money without compromising the quality of care and the government does offer several tax breaks to families with children. This article will outline helpful hints for parent's references:

!b>Pay with pre-tax dollars

You can significantly cut the cost of childcare by paying with pre-tax dollars. Many employers offer flexible spending accounts. Check with your employer to see if this is available. Flexible spending account allows you to set aside pretax dollars to pay for licensed dependent care services.

Take the childcare credit on your tax return

The government offers a tax credit that you can subtract from your tax bill at the end of the year. Unfortunately, you aren't allowed to use both the childcare tax break and the child tax credit.

Enroll into childcare subsidies program

See if you qualify for childcare subsidies and programs at local, state, and federal government levels. Depending on your income, you may be eligible.

Share the childcare cost with other parents

Consider sharing childcare with a close friend, neighbor, relative or coworker. You can save money by sharing the costs of a babysitter or nanny. Be sure to plan well and meet with everyone before the first day of childcare to make sure instructions and expectations are clear.

You can organize a babysitting co-op or playgroup with other parents whose children are close in age to your child. Swapping childcare is one of the most cost-effective ways to free up time for yourself while your youngster can enjoy playtime with friends.

Work out flexible scheduling with your employer

Ask your employer about the possibility of flexible working scheduling. If you get the approval of flexible working schedule, you could share responsibilities with your spouse or partner; this will alleviate the need for expensive daycare cost.

Reducing Your Children's Spending The best way to reduce the cost of the things that children want is simply not to buy them. By trying to instill healthy money habits and attitudes from the time children are very young, you will be able to save a great deal of money in the long run.

The more time you spend teaching young children good money habits and discouraging them from wanting needless things, the lower the financial impact their teen years will have on your family budget.


Childcare cost is an expensive expenditure of household budget, it worth to put your effort in working a good financial planning to down the childcare cost without compromising the quality of care. Cost effective childcare may mean a happier solution for you, your child and your piggy bank.

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Cornie Herring is the Author from "StudyKiosk-Credit Basics" is an informational website on credit basics, mortgage and personal finance.

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