Image source: Getty Images
Child care costs are a significant expense for many families in our country. For parents who work, having a safe, reliable, and quality child care provider for their children is a must. But it can be hard to find a great place that doesn't break the bank. If you're a new parent or are thinking about becoming one soon, it's essential to begin considering these costs.
Unless you have family or friends in the area willing to help or can afford to stay home with your children, child care costs are worth considering before it's time to pay them. You may be surprised at how expensive quality child care can be.
New: Card with huge $300 bonus hits market
More: These 0% intro APR credit cards made our best-of list
58% of families plan to spend over $10,000 on child care in 2022
Care.com, an online marketplace for care services, researched the cost of child care through its recent Cost of Care survey. It found that many families are greatly concerned about the cost of care and child care costs and the availability of quality child care.
Here are some notable stats from the study:
- 59% of parents are more concerned about child care costs now compared to prior years.
- 43% of parents think it's been harder to find child care over the last year.
- 58% of those surveyed plan to spend over $10,000 on child care costs in 2022.
- 72% of parents spend 10% or more of their household income on care for their children.
- 51% of parents spend more than 20% of their household income on child care.
It's clear that child care is not cheap. But many families don't have much choice, especially if they can't afford to leave work and stay home to care for their kids as they grow up.
Some parents have to make career changes to afford care. That may mean limiting work hours, switching jobs, taking on extra work, or leaving the workforce entirely.
How to prepare for child care costs
If you already have young kids or are planning to start your family soon, you may be wondering what you can do to prepare for this major expense. Here are some tips that may help:
Start saving ASAP. It's best to start saving for child care expenses as soon as possible. If you can start saving before you get pregnant or begin your family, it will give you more time to put away extra cash in your savings account.
Research care options early. You want to start looking into child care options as early as possible. Many child care centers book out well in advance, and if you wait until the last minute, you may not have many options. Researching early can help you adjust your budget, too.
Check to see if you have child care benefits. Some employers offer care benefits that could help reduce out-of-pocket child care expenses. It's worthwhile to look into this so you don't miss out on money-saving job perks.
Consider alternative work opportunities. If you're not making enough money or are working for an employer that doesn't prioritize family, it may be time to explore other work opportunities. Switching careers entirely, getting a job with a different company, or committing to a freelance or self-employment role are some options to explore.
Look for affordable solutions in your community. If you have limited funds but need help with care, there may be affordable solutions in your area. Some child care programs offer grants or lower pricing to parents that meet the income qualifications.
Being a parent is hard work, and it costs a lot of money, too. Planning for child care costs before you need help with care is a good move to make. If you're looking for tips and tricks on how to make your money go further, review our personal finance resources.
Check out our pick for Best Cash Back Card of 2022
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
