6 Strategies to Keep Child
Care Costs Under
1) Strategize Your Work Leaves
Usually, mom will get to take around 12 weeks of
maternity leave—but often dad may get a week as
well. If not, he can use vacation time, too.
Sometimes, grandparents visit soon after a child is
born. This could free up dad to go back to work,
and take his leave when the family leaves town.
Although there’s little financial benefit to this, it can
be immensely helpful for baby and mom.
2) Create a
Simply sitting down and
planning out how much
you’re prepared to spend can
make a big difference.
There are lots of forms of
childcare, including day care
centers, private day care, au
pairs, and nannies.
Costs and availability vary
wildly, so getting started
early can have huge
3) Don’t Forget About Tax Breaks
Many parents are unaware that their childcare
spending can yield significant tax breaks.
1. If your company offers Flexible Spending
Accounts, you can set aside $5,000 of tax-
deductible cash to be used on dependent child care
(if filing jointly).
2. If your company does not offer these accounts, you
can still claim the Dependent Care Credit of up to
$3,000 for one child, or $6,000 for more than one.
4) Talk to Your
The Care.com survey
reports that there are several
steps that HR departments
take to help working
parents make ends meet,
• Free membership to
Care.com’s child care
• On-site daycare.
• Child care
Sadly, many parents leave
these benefits undiscovered
because they never ask.
5) Consider Non-
• Many companies are willing to allow individuals to complete
some or all of their work remotely these days.
• According to author Aaron Hurst, freelancers are becoming much
more prevalent than in years past. By the end of the decade, some
believe 40% of the American workforce will be freelancers—and
have the requisite time flexibility.
Historically, the extended
family has always played an
extensive role in child-
It is only recently, and
especially in America, that it’s
become common for us to live
so far away from our kin.
Seriously consider the
financial, social, and
emotional benefits of living
near family—who are often
excited to lend a helping
This Isn’t The Only Step to Retirement
Planning for New Parents
Retirement planning is a life-long process. Make it
easier by being smart about taxes. Check out one
strategy in our special free report:
Take Advantage of This Little-
Known Tax “Loophole”