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Dealing with the high costs of daycare can be a burden While costs are high, there are options to cut expenses and simplify finance management around child care



Considerations to Make When Figuring out How to Pay for Daycare

July 22, 2019
By Comerica Bank

The matter of how to pay for daycare can leave many parents and guardians with sleepless nights. The high costs of child care are exacerbated by the educational and social development offered by daycare services. The result is often escalating costs and a need to build family schedules around the way a daycare functions.

These barriers can create a great deal of stress. But as families consider how to pay for daycare, they do have a few options at their disposal, including methods to defray the costs of care or manage their finances in a way that eases the burden of dealing with expenses.

Limiting the costs of daycare

There are a few ways to reduce how much your family is spending on child care, even without going with a lower-cost alternative. Finding the right care provider is challenging enough. Trying to switch just to save a bit of money is not always simple. However, you can work with your employer to see what options you may have available. In particular, many businesses today are more open to offering flexible work schedules, especially for those responsible for taking care of family members. Making arrangements to work at alternate hours some days can reduce the amount of time your child spends in daycare, cutting your costs.

If you do not need all-day coverage, you can also consider nanny share programs in which multiple households work together to pay a full-time nanny, with the child care provider splitting time between the participants.

Another child care assistance option comes in the form of a flexible spending account. Some employers offer flexible spending accounts as a means for employees to pay for key expenses either with pre-tax income or at a reduced tax rate. Many banks also offer savings programs designed to help families pay for education-related expenses.

Additionally, there are numerous child care assistance programs from state and federal government agencies. The specific provisions around these initiatives can be highly variable, but the government has created a centralized resource you can use to explore opportunities and find out what may work for your family.

Simplifying financial management to handle expenses

The saying, "Time is money," may be a cliché, but it is used repeatedly for a reason. Your time is valuable and, when it comes to managing the cost of child care, time you spend balancing the budget and handling payments could otherwise be spent with your child. Modern banking solutions are providing increased access to digital services, letting you automate payments and manage your account from a wide range of devices and locations. Even if you are only saving a half an hour a week that would be spent writing checks, mailing bills, and otherwise arranging finances with your daycare provider, that time adds up quickly over the years.

Mobile and online banking solutions can also provide instant visibility into account balances, making it easier to budget by reducing the need to manually track expenses.

When you are considering how you will handle the costs of daycare, it is important to think about more than just the monetary factor. The costs in terms of time and management can also add up in a hurry, and today's digital banking tools can help you along the way.

Comerica Bank can help you in this process. We offer robust mobile and online banking tools to help you manage your account and access key services at your convenience. We can give you the easy access to banking resources you need.

 

This information is provided for general awareness purposes only and is not intended to be relied upon as legal or compliance advice.

This article is provided for informational purposes only. While the information contained within has been compiled from source[s] which are believed to be reliable and accurate, Comerica Bank does not guarantee its accuracy. Consequently, it should not be considered a comprehensive statement on any matter nor be relied upon as such.