And by permanent, I mean as long as you have kids who need child care. So how do you find the money? Do a couple of trial runs in your budget to see what amount you can make work for you and your family.
Also, start to look for everyday ways to save, like cutting the cable at your house. Scale back on going to restaurants and hitting up the drive-thru. Limit your family to eating out once a week or even twice a month and see how much you could save. If both you and your spouse are working full time at good-paying jobs, that may not be an expense that worries you.
That means nearly all of your take-home pay is going right back out to cover the cost of daycare prices. You might barely be breaking even! If you love what you do, then it could be totally worth it. So, the big question here is: Is it possible to save money on daycare prices?
It never hurts to ask! Depending on your income and filing status, you might be eligible for some tax breaks when it comes to child care too. Your daycare costs could be deductible! Contact a trusted tax pro if you want more information on that. Of course, there are some restrictions with this, so check with your employer to see what they offer. Select basic ads. Create a personalised ads profile.
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A family member might be able to adjust his or her schedule to your needs, while a contract provider might charge additional fees. Trade babysitting services. How it works is simple: One of the other parents comes over to your house to watch your kids ideally after they are asleep while you go out, and then you return the favor at another time.
Join or create a babysitting co-op. A little more organized than simply trading one-for-one babysitting services, this option takes more effort to get started and works better when more families are involved, but it's worthwhile once it is up and running.
Split a babysitter or nanny with another family. The cost goes down for both families and the kids may even form close bonds. Consider an in-home day care or family child care option. A family day care — where a provider cares for children in a private home — can often be a budget-friendly choice compared to full-time nannies or day care centers. Like commercial day care centers, home day cares must meet strict state licensing regulations to operate.
In-home day care providers should also take the same safety precautions you take at home gated stairways, guards on windows, fluff-free bedding in cribs.
The house should be neat and child-safe, with a spick-and-span kitchen and bathroom and an enclosed outdoor space for play. Look at corporate day care options at your office building. You may not realize it, but many office complexes have on-site child care and may offer a discount. Ask your human resources department if they have any negotiated discounts for employees at any nearby child care centers. Some workplaces even offer subsidies to help cover caregiving costs. Ask your HR representative about additional reimbursements and benefits.
Benefits like educational assistance, transportation benefits, adoption assistance, gym memberships — they may even have negotiated a special rate with a nanny placement agency — are all ways you can cut costs, adding to your revenue stream — and helping to make child care more affordable.
See if your employer offers a flexible spending account FSA option for child care, which lets you save pre-tax dollars from your paycheck to pay for child care costs. Similar to a health care FSA, which you use for medical expenses, this type of account allows you to contribute pre-tax income for work-related dependent care costs. Since the funds are taken from your paycheck before taxes, it will lower your tax liability at the end of the year.
Capitalize on those tax breaks. When you do your taxes, check to see if you qualify for the Child and Dependent Care Credit. The higher your income, the smaller the percentage and the credit. Though it may not seem like much, remember: A tax credit reduces your tax liability and could even lead to a refund. Apply for assistance. Eligibility requirements are different for each branch of service.
More information is available here. Assistance for high school students: Some states offer financial help for high school students who need child care to finish school. Ask about help for high school students.
College or university child care: Some colleges and universities offer child care on campus. These programs may offer special discounts to students, faculty, and staff. Employer-assisted dependent care: Some employers may allow employees to put a portion of each paycheck into a special fund to use for child care. The money placed in these funds is not taxed and can only be used to pay for child care. Check with your human resources department about what might be available where you work.
In addition, some child care programs may offer discounts for employees of certain companies. Find out if your employer has relationships with any nearby child care programs that offer employee discounts.
Sliding fee scale: Some providers allow families to pay a rate based on their income. This is called a sliding fee scale.
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