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The Allstate Blog | Everyday Peace of Mind

Share Your Day Care Cost Concerns via E-Cards

Newborn babies seem to arrive hand-in-hand with new expenses. One of the biggest expenditures new parents may encounter is the cost of day care. According to the Association of Child Care Resource & Referral Agencies, the average cost for baby and toddler care in center-based day care facilities in the United States… Allstate https://i0.wp.com/blog.allstate.com/wp-content/uploads/2015/02/Baby-Day-Care-Dilemma-No-Logo.png?fit=4005%2C1393&ssl=1

Baby Budgeting Blueprint logoNewborn babies seem to arrive hand-in-hand with new expenses. One of the biggest expenditures new parents may encounter is the cost of day care. According to the Association of Child Care Resource & Referral Agencies, the average cost for baby and toddler care in center-based day care facilities in the United States is $972 per month (or $11,664 annually). Pricing for licensed, home-based day care is a bit cheaper — averaging about $650 per month. The most expensive option? Private, in-home caregivers or nannies who make an average of around $2,400 per month.

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All of these child care options have financial implications, and some of them might be surprising. When researching your options, here are some things other parents have encountered that you may want to consider.

Day Care Center/Home-Based Day Care:

Many facilities have specific closing times, and some even charge fines for late pick-ups that can add up by the minute.

Day care sick policies are often strict, so be prepared for unexpected early pick-ups if your little one comes down with something in the middle of your workday. You’ll also want to consider additional medical costs and the possibility of having to take unpaid time off from work if you exceed your allotted sick days.

Todaysparent.com recommends making sure you fully understand your day care’s specific illness policies and protocols before your child gets sick, so you’ll have a backup plan ready when the time comes. This will help to minimize the worry of waking up with a sick baby, and also help protect you paycheck from unpaid days taken off from work to care for the little one.

 

In-Home Caregivers or Nannies

If your caregiver gets sick or needs to take time off, you’ll have to find coverage. An additional consideration is that you’re the employer, so if your nanny makes more than $1,900 a year, according to Care.com you’ll need to pay taxes. Because nannies are working (and sometimes living) in your home, you may want to account for things like extra insurance and gas if they have use of your car, or even the additional utilities, internet or food they consume. Finally, some families might also factor in bonuses to keep an outstanding nanny happy.


These are just a few things to consider. Parents who’ve been through it say it’s always good to be flexible and try to minimize stress by being prepared as you make your arrangements. In that spirit, feel free to share these e-cards with others who are navigating childcare options.