Tips for lowering child care costs: Flexible Spending Accounts to flexible scheduling

Child care costs are astronomical in some areas of the United States, and can significantly vary depending on where you live. Before returning to work, consider these tips to lower child care costs.

Dependent Care Flexible Spending Accounts

Invest in a Dependent Care Flexible Spending Account : Dependent Care Flexible Spending Accounts (DCFSA) “allow you to be reimbursed on a pre-tax basis for childcare or adult dependent care expenses for qualified dependents that are necessary to allow you or your spouse to work, look for work, or attend school full-time”, according to the FSA FEDS website. This flexible spending account differs from traditional flexible spending accounts, which are solely available to cover non-reimbursable medical expenses. The important thing to remember about DCFSAs is that the money is use-it-or-lose-it. Any money leftover in the account at the end of the year will be lost. Research whether or not your company offers a Dependent Care Flexible Spending Plan, and if so, take advantage of this opportunity to save on child care costs.

Flexible job scheduling

Seek opportunities for flexible scheduling : Many daycare centers charge by the day, week, and month, and not by the hour. Working four 10 hour days instead of five 8 hour days will save you one day of child care expenses. Another option is to work opposite shifts and days than your spouse, if possible. One spouse working four 10 hour days Monday through Thursday, and one doing the same on Tuesday through Friday eliminates the need for childcare on two days. Many employers are willing to be flexible about in office hours as long as you can be reached at home via phone or email on your days off.

Child care trade, home day care centers, or mother’s helpers

Consider non-traditional child care options : Trading child care with a friend or neighbor can save you both time and money. Research in home day care centers as an alternative to pricey day care centers and nannies. Work from home 2-3 days a week, and hire a home-schooled mother’s helper to assist you for a few hours every day. Think outside of the box when planning child care. It has the potential to save you money in the long run.

Child care expenses are a major cost for working parents. Taking advantage of Dependent Care Flexible Spending Plans, seeking flexible scheduling opportunities, and researching non-traditional child care options are three ways to help lower your child care costs.

Resources FSA FEDS Maximize Your Employee Benefits

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