The Cost of Child Care

Today I have been doing some research on the cost of child care in the United States. Many families assume that it is financially impossible for mom to stay at home with their children. Just by doing some basic calculations and subtracting monthly expenses from your partner’s salary actually gives you quite an inaccurate view of your situation. When you carefully evaluate your finances by creating a budget and calculating all expenses associated with child care, you may realize that the impossible is actually possible.

The actual cost of child care is not an easy thing to find. It will depend on the area you live in, what type of child care you need, your child’s age and the amount of time your child will spend in child care. To give you an idea the National Association of Child Care Resource & Referral Agencies (NACCRRA) has reported average annual fees for full time child care in 2008. The average cost for child care in the US in 2008 was $8,798, ranging from $5,096-$15,895. For an exact figure in your state, click here. In-home childcare costs tend to average slightly less than child care centers, while hiring a nanny will be your most expensive option (up to $3,033 a month for full time care).

When figuring your costs for child care and considering your budget as a working mom, you cannot forget to think about what your job is actually costing you. Working creates costs that you do not incur when staying at home. Think about transportation costs, parking, clothing, dry cleaning, lunches, coffee and snacks. You should also include in your budget take-out food costs and expensive grocery bills. The thought of cooking, buying in bulk and grocery shopping with coupons is not exactly a reality when sleepless nights and long days at the office are your routine.

When you create your budget and consider all of the costs associated with working and child care, you may find that the amount of money you are actually bringing home is far less than what you assumed. At this point you should consider your options. Is the possible 10% of your income worth it? Can you cut back on some areas in your budget to account for the loss of that amount?

Before you make your decision, spend time working on your budget. Budgets are not set in stone, and everyone needs to make one that works for their family. Use your calculator along with your creativity and you may realize that staying at home is actually the economical choice for your family. (not to mention so much more rewarding!)

Need help creating your budget? Begin here.

This post is part of a series on being financially able to stay at home with your children. Click here to learn more on this topic.