How to Reduce Child Care Costs

Child care costs are constantly on the rise and can be one of the largest expenses a family must pay each month. It is getting increasingly difficult for a family to survive on just one income, but often child care can eat up the majority of the second income if both parents choose to work.

Difficulty: Moderate

Instructions

1. Check with your employer to find out if the company offers flexible spending accounts. If they do, then you are allowed to set aside pre-tax dollars for childcare expenses as long as you bring your child to a licensed day care. Paying for childcare through a flexible spending account can save you hundreds of dollars a year in taxes.

2. Take the allowable child care credit when filing your income taxes if you do not participate in a flexible spending account. Unfortunately you are not allowed to do both.

3. Barter for free or reduced child care. Volunteering at your child's day care center might allowed in exchange for money taken off of your bill. Call local day cares to ask if they offer this option for parents.

4. Flex your schedules if you are a two parent household. Someone could work first shift and the other person could work second shift which would either cut down or eliminate the need for paid child care.

5. Work from home. Start a home based business or look for freelance work that you can do from your home office and be home with the children at the same time.

6. Share the expenses with a friend or neighbor. Especially if you each only have one or two children, you might be able to save money by hiring a baby sitter or a nanny to watch them all in one house.

7. Hire a college student. Students going to school to be teachers and other professions that work with children will often welcome the experience and provide good quality child care at a fraction of the cost.