Ask An Expert

How do I prepare for Daycare Expenses?

 

Joann North

Answered By

Connor Tyson, ChFC

Personal Finance Coach at Progress Solutions LLC

connor.tyson@progressfc.com

Question

How do I prepare for Daycare Expenses?

 

Answer

There is a lot to consider to this answer, but first, start with searching the right type of care for your new baby or toddler if going back into the workforce. This can be a game changer for most, as the cost of Childcare is burdensome, to say the least! Please see this study by Care.com 

1. Research everything!

  • Discounts
  • Supplies needed from the care center
  • Monthly vs. Weekly payment
  • Deposit fees, are they refundable or not?
  • Look at home vs. center care pros and cons of each option.

2. Accept hand-me-downs from other friends and family.

3. Get your monthly cashflow plan straight, and treat Daycare as an essential, like housing. I can provide a budgeting process that is easy and intentional if you need help with this.

4. Buy in bulk, as I don’t need to tell you diapers and wipes go real fast.

5. Save up as soon as possible, and prepare, so you have a cushion for unexpected things in life that will happen.

6. Ask your employer about Daycare related benefits. Many large employers now have services, benefits, and possible discounts available for employees.

Raising children is expensive. I remember when both my Children, now 9 and 6 were done with Daycare, I thought I would cry, not over the fact they were going into Kindergarten, but I could now afford an Audi A6 car payment.

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