29 Ways to Make Child Care More Affordable

It’s a fact: Finding affordable child care isn’t easy. And unfortunately, the cost keeps going up in many parts of the country.

But before you start to wonder how you'll afford child care, here are some smart and effective cost-cutting tips you can start using now. 

How to save money on child care

By applying a little ingenuity and practicing some flexibility, these ideas will help you save on day care, babysitting or caregiver expenses, making affordable child care a reality.

Enlist the help of friends and family

If you have family nearby, the easiest way to reduce your child care costs is with relative care. And although you should always offer to compensate them, the cost will likely be much less than what you’d pay at a center or for a nanny. 

Another perk? Flexibility. A family member might be able to adjust his or her schedule to your needs, while a contract provider might charge additional fees. To avoid misunderstandings or hurt feelings, make sure you’re on the same page as far as care (like work hours and parenting philosophies), address problems as they arise, share tips about health and safety, and offer some sort of compensation, even if they refuse payment. 

Trade babysitting services

Whether it’s with another family in the neighborhood or someone from your baby group, trading babysitting services is a cheap option that gives the other parent a break — for free! 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 babysitting co-op is essentially a group of parents who come together to formally rotate caregiving responsibilities — instead of hiring a babysitter for money, participants “pay” each other by taking turns caring for the children. It’s a little more organized than simply trading one-for-one babysitting services, since a co-op typically exists during pre-set hours and days of the week. As such, this option takes more effort to get started (the legwork of finding other families is on you, but local Facebook groups are a great place to start) 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

When you're attending all those meet-and-greets and baby group activities, see if anyone is interested in sharing a nanny, sometimes called "share care" or "nanny share." The upside? 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

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

If you haven’t already, ask your HR manager about any perks or reimbursements the company offers that you may not have paid attention to when you first accepted your job. 

Benefits like educational assistance, pre-tax transportation plans, adoption assistance and gym memberships (some offer child care) are all ways you can cut costs. They may even have negotiated a special rate with a nanny placement agency.

Look into a Dependent Care Flexible Spending Account (DCFSA)

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. The maximum contribution for 2022 is $5,000 per year, per household. 

Capitalize on those tax breaks

When you do your taxes, check to see if you qualify for the Child and Dependent Care Credit. Your income determines the percentage for which you’re eligible. 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. 

It’s important to note that while there are some exceptions, you typically can’t use both a DCFSA and the Child and Dependent Care Credit. If you can, talk to a tax advisor about what makes the most sense for your family.

Apply for assistance

Most states have programs that provide financial assistance for child care to low-income families. Typically, you pay a portion of your child’s day care costs based on the size of your family and income, and the state program pays the rest. 

Child Care Aware of America has a database with information on the programs and other resources available in each state. These programs often have long wait lists, so apply as early as possible.

Research the Child Care and Development Fund

Available to low-income parents or caregivers, the Child Care and Development Fund subsidizes child care for children under age 13 (or under 19 if incapable of self-care or under court supervision). There are some stipulations to meet, including employment or training enrollment. 

If you're a student, look into subsidized care

Some U.S. institutions offer on-campus child care (often subsidized) that’s not only for the faculty but for students as well. The wait lists can be long, so it’s best to try and reserve your spot ASAP.

Reach out to a local university

College employment offices often know of students looking for part- or full-time work. Early childhood education or nursing students are ideal candidates when looking for help with child care.

Check out non-profit organizations 

In addition to government programs, some nonprofits like the YMCA, teen centers and religious organizations offer child care services for infants 6 weeks or older on sliding-scale fees based on income. Centers that aren't nonprofits might also offer similar programs or scholarships for low-income families. Don't be afraid to ask.

Hire a local teenager

Best for when your kids are older and more self-sufficient, a teenager’s hourly price will be well below the going rate for seasoned babysitters. Facebook is a great resource for finding local sitters. Many communities have “Moms and Dads” pages that are open only to individuals who live in the area — you can post here or search existing posts to find the help you need.

Hire a local tween 

Although you shouldn't leave a tween alone with your kids, hiring one as a "mother's helper" can give you the freedom to work or finish a project in the same room while your kids are entertained. You can often find this sort of help on your local Facebook page, too.

Stagger your work schedules 

If you work remotely or have flexible hours, see if you can stagger your schedule with your partner's and eliminate the need for child care. This option isn’t easy — and you might feel like two ships passing in the night (or day) — but at the very least, it may be a temporary solution.

Ask for flextime 

If you think it's right for you, discuss flextime with your boss, which would allow you to have a flexible starting and quitting time. Adjusting your work hours could help you save on the number of hours you would need for child care.

Ask to work from home

Whether it’s for a few days or your entire work week, working from home while your kids are there can save you a lot of money, although it can be tricky to juggle. If you’re able to be productive with your little one in tow, then a telecommuting arrangement is a win-win for everyone.

Create a budget

Never fun or easy, but if you create a family budget to reduce expenses (and stick to it), you’ll come out ahead. Also, knowing there is a fixed timeline for child care costs can help alleviate the pain of reducing your expenses. 

Cut the frills

Some day care centers have perks that, while terrific, can be expensive. If foreign language classes or the latest toddler gymnastics class isn’t on your list of must-haves, you can opt out of the pricier center for one that is less expensive but still meets all of your basic requirements.

Look into local clubs

Groups like the Boys & Girls Clubs of America offer older kids a place to go when they aren’t in school. A membership fee and any additional program fees are kept low to ensure all members are able to afford the program. Check with your local organization for age-related specifics, but note that many of these clubs aren’t licensed daycares, so they often can’t accommodate children until they turn 2.5.

Join a family-friendly work co-op

Today, there’s an emergence of co-working spaces that offer important perks for parents — namely a space for you to work adjacent to childcare settings, including playgrounds, supervised play areas, and classes. Often, members rotate supervision responsibilities, though some spaces employ help. Because it’s not as formally managed as a daycare setting, these options typically work better for older kids.

Join a day care co-op

Similar to regular day care, a day care co-op can help offset expenses (resulting in a lower cost for you) by using parents to volunteer their time for various activities like art class or read-a-longs. 

Ask for a discount

Many day care centers offer a discount for siblings. You can also ask if there's a discount for paying for a half year or full year's tuition upfront. If your family qualifies, see if the center offers military discounts. If neither of those options apply, ask the center’s director if there are any current or upcoming specials. It doesn't hurt to ask — and it could save you quite a bit of money over time.

It’s also worth noting that some preschools, which may accept children as young as 1, depending on their licensing, offer tuition assistance. Again, don’t hesitate to ask.

Ask for part-time options

If your schedule is flexible enough, check to see if your day care or nanny can provide services just two or three days per week, rather than all five. It’s also a viable option for those who have reliable fill-in help — like a family member or a mother’s helper who can commit to helping you on off days. If you can swing it, this sort of arrangement can almost immediately cut your child care expenses in half.

Hire a nanny

You might think a nanny is the last type of child care a budget-minded family would ever consider. But if you have more than one child, hiring a nanny could be more cost-efficient than using a day care center — even with a sibling discount.

Comparison shop

If you’ve narrowed down your list of day care centers to a couple of finalists, compare their going rates and what they have to offer. You might discover the center five minutes from home charges a whole lot more than the one that's ten minutes away — with all the same benefits. Or perhaps the weekly rate is the same, but they have very different levels of staff interaction.

Read the fine print

You can rack up a lot of additional expenses if you sign a contract (of any kind) without reading it completely. Before you commit to a provider, make sure you know about any additional fees: Are there charges for early drop-offs or late pick-ups? Are all activities included, and are there extra charges for supplies? 

Don’t forget to ask about termination fees. Some centers levy a hefty charge if you don't give advance notice before ending your child’s enrollment. 

You’ll also want to look and see when the center is closed for holidays and breaks. If you can't take those same days as vacation days, you'll have to find an alternative child care solution — and likely shell out more money.