When it comes to choosing a great daycare, price is one of the biggest factors for most parents. Over the past decade, the cost of child care has skyrocketed. It even exceeds the average price of college tuition. Despite the hefty price tag, daycare is still a non-negotiable essential for most parents. Luckily, there are still ways to find a great, affordable daycare and make it work with your budget.
How much is daycare going to cost?
Posted daycare rates average $321 per week for one infant and $293 for a toddler, according to the Care.com 2024 Cost of Care Report.
That said, the price of daycare in your city will vary widely depending on where you live and what type of care you’re looking for. In major metropolitan areas like New York City or San Francisco, the price is obviously going to be higher than in smaller areas with lower costs of living.
The price of daycare is also affected by other factors, including:
- Age of the child; infant care is more expensive than care for older children.
- Whether you need full-time or part-time care.
- The availability of programs in your area.
- Class sizes and amenities offered by the daycare facility.
- Whether the facility is public or private.
- The demand for the program.
Care.com’s Cost of Care Calculator can help you figure out what daycare in your area will cost, but first you need to be certain of a few details about the kind of care you need:
- What zip code do you need care in?
- How many kids need care?
- How many hours do you need child care?
Another way to figure out specific prices in your area is to get referrals from people you trust. A neighborhood Facebook or NextDoor group can be a fantastic resource for asking local parents what daycare centers they use and what you should expect to pay. Schools and churches may be able to offer information about recommended daycare providers in the area.
How much can I afford to pay?
Once you have a good idea of the price range for the kind of care you’re looking for, take a look at your monthly budget and figure out what you can actually afford to spend.
“There isn’t a set rule, but I suggest keeping it around 10% of your income,” says Beverly Harzog, a consumer finance analyst and credit card expert at U.S. News and World Report. Of course, higher quality programs and those in more expensive parts of the country may cost more than 10% for some families, says Harzog.
What if daycare is too expensive?
If fitting the cost of daycare into your monthly budget sounds challenging, you’re not alone. According to the 2024 Care.com Cost of Care Report, parents surveyed say they are spending 24% of their household income on child care. Here are a few tips and alternatives you can consider if paying for daycare is feeling too tight for comfort.
Cut costs on ‘extras’
If you’re angling for a pricier program but are sweating the added expense, says Harzog, it’s worth it to look for ways to lower your other expenses.
“If you want to use a daycare that’s a little on the high side, then go through your budget and find expenses that you can reduce or eliminate,” she says. “For instance, instead of working out at a gym and paying a monthly membership fee, buy some exercise DVDs and work out at home.”
Consider a daycare co-op
Of course, if your budget is already tight, eliminating a few memberships likely isn’t going to cut it. A daycare co-op, where care is shared between a group of parents, may be a practical solution for some.
Reduce the hours of care you need
Harzog also says to look for creative ways to lower the overall cost of care. “If you’re part of a couple, then explore options such as staggering working hours so that each parent can cover part of the day,” she says.
Try a family member or neighbor
Another good option may be to see if you can work out a care agreement with a nearby relative or neighbor for some or all the hours you need child care.
Find local resources that can lower the cost of daycare
If none of those options are open to you, you might also look into whether or not there are federally funded programs and subsidies available to you, such as preschool or after-school care provided by the local school district. Churches and recreation centers, like the YMCA, also sometimes offer cheaper daycare programs.
Check your work benefits
Lastly, some employers offer benefits to aid in covering the cost of child care.
“Check with your employer to find out if Dependent Care FSAs are offered to employees,” Harzog says. A Dependent Care FSA allows you to deduct pre-tax income from your paycheck to pay for qualifying dependent care programs, like daycare and after school care, which can reduce your overall tax burden to help you save some money.
