Visually Mapping Out the Road to Childcare Costs

As many young families know, early childcare costs can be a barrier to entry for dual-career households. The costs of early childcare can range from $5,000-$10,000 per year. However, the cost to parents may be even higher than what is written on paper.

The lost income due to decreased hours at work and the lower performance in school for younger children have never been taken into account when discussing costs associated with childcare. The following steps should help parents visually map out the road to childcare costs:

1. Start With Pre-Natal Care

The cost of prenatal visits to determine the baby’s health is essential because these services are automatically covered by insurance. However, even these costs can add up as parents are encouraged to have a battery of tests, including but not limited to ultrasounds. Healthcare for your child starts when you are pregnant, not during parturition.

2. Figure Out Average Costs Of Childbirth Delivery In Your State

Different states have different costs for childbirth. In some states, the average price is as low as $5,000, while in other states, it can be as high as $10,000. The higher costs are attributed to factors such as complication rates and doctor fees for a C-section.

The most expensive states for childbirth costs are Alaska, Florida, and New York. The cost for an average hospital room is approximately $1,200 per day. The price increases significantly with the addition of a private room. The cost to take time off from work includes paid vacation days, sick days, or personal days.

Also, depending on the contract negotiated between the employer and employee, there could be a monetary penalty associated with taking a leave of absence. The penalties often lead to employees taking time off without pay, which effectively decreases the overall net income by 30-50%.

3. Estimate Average Infant Care Costs

The average annual cost of infant care can be as high as $10,000. However, there are some cases where the price is even higher than this amount. The variation in pricing is due to the different age brackets that fall under one name of a childcare facility. One of these examples would be buying a car seat for your newborn baby.

4. Analyze Your Insurance Coverage

When parents analyze their insurance coverage to determine how much they are covered for in benefits, they should look at the potential costs of childcare. For example, if one parent expects to take six months off work after childbirth, they will need to fill that gap by paying for infant care until they return to work.

The cost of this care will be higher than the average annual rate due to the extended length of time and the potential need for an infant sitter. Programs like Obamacare could help reduce the costs.

5. Explore Different Types Of Childcare Health Providers

Many parents are unaware of the different types of childcare providers. One example is an in-home provider, which is more personal than a childcare center because it is not part of or attached to another building.

A childcare center can be part of or attached to another facility, but this does not mean that it offers less quality care. It just depends on preference.

6. Find Out What Your Daycare Options Are For Infants 

If parents are planning to have a second child, the newborn will need a daycare facility. However, it is essential to note that there are different types of options for infants. Some facilities take infants from three months old, while others only allow children at least six months or older.

You can divide the cost of childcare among two or more people. That means if it costs $5,000 per year for daycare, parents can split the cost by two to save money. If both parents are working full-time jobs and paying for childcare, they could potentially double their paychecks by sharing the cost of childcare.

Aside from the six steps above, there are many other ways to reduce childcare costs. The implementation of these strategies will take planning and organization. However, the result can be well worth it since parents will find that they have more disposable income at the end of each month.