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Growing Family?  The Price of Daycare

Growing Family? The Price of Daycare

| May 17, 2019

For many working families day care is a pragmatic solution for child care.  Of course the costs vary depending on the age of your child, the hours needed, the state/city you reside in, and the type of care desired.  Depending on the age of your child, additional expenses can include gymnastics, art, music, or even second language classes.

Toddlers and Babies are higher in price due to the fact that they require a more hands on approach with extra monitoring.  According to the National Association of Child Care Resource & Referral Agencies (NACCRRA) the average cost of center-based day care in the United States is $11,666 per year ( $972 a month), but prices range from $3,582 to $18,773 a year ($300 to $1,564 monthly). 

Pre-school age kids are generally lower in cost, averaging $8,800 a year ($733 a month).  Again, these costs can vary depending on the location or city that you reside in.  A family could pay $4,460 to $13,185 a year ($371 to $1,100 a month). 

Although child care is expensive, let's take a look at some of the benefits:

  • Prepares kids academically for further education
  • Makes kids better communicators
  • Helps reduce infections later on
  • Teaches kids proper behavior and cooperative play
  • Gets kids into routines/schedules
  • Activates the senses and encourages exploration

The key is to budget accordingly (maybe have a portion automatically deducted and deposited straight into an account specifically for daycare), do your research on the daycare center, and ask your employer for any advantages they offer on the corporate level.  Check out community reviews and be sure to look for discounts if you have more than one child attending.  Take advantage of tax credits- sometimes these daycare expenses are tax-deductible.  The cost of daycare is expensive but the level of care, developmental skills, academic achievements, and nourishment it brings to their little souls is forever! 

*The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.  All investing involves risk including loss of principal.  No strategy assures success or protects against loss.