Financial Considerations CenterSiteFactors in the Childcare Decision
As parents think about their motivations for providing care to their
child, they must consider many factors. These include financial
considerations, career issues, emotional considerations for both the
parents and the child, and the development and socialization of the
child. For example, the type of developmental and social opportunities
that parents desire for their child must be considered. Some parents
want their child to be part of a larger group and gain experiences from
interacting with other children. Others desire a smaller setting where
their child will receive more one-on-one attention and skill building.
Parents must also consider what they desire for themselves. Some
parents desire to continue their careers while others feel that the
ability to be a full-time or part-time caregiver for their child must
take priority over their career during their child’s early years. There
is no one solution that fits all situations. Instead, each family must
find a caregiving solution that fits their unique needs, desires and
resources. The many variables that affect the childcare decision are
described in some detail in the following discussion.
Financial Considerations
If the family chooses to use some form of day care, they will most
likely be required to make a weekly payment to the provider. Rates vary
depending on a number of factors, including the area of the country,
whether the setting is metropolitan or rural, the type of care chosen,
and the number of care hours needed.
Some families choose to use nannies or au pairs for child care
duties, locating suitable persons for such positions through agencys,
or in some parts of the country, by hiring an undocumented worker.
Other families choose to have a friend, relative, or neighbor provide
care. Rates in these types of settings will vary not only depending on
the area of the country, but also on the individual agreement made with
the caregiver in terms of salary, benefits, or housing. There is more
flexibility in agreeing on a rate in such informal settings, but
generally a live-in nanny will earn $250-400 per week if he/she is new
to the field and anywhere from $350-1,000 per week if he/she is
experienced. In addition, benefits can include paid health insurance,
use of a family car, two weeks paid vacation per year, and all major
holidays off and paid. A live-in nanny will also receive room and
board.
Rates for family care providers in
the United States vary depending on the area of the country.
However, the typical rates for one child is $80-125 per week
(approximately $2-3 per hour) for full-time care. However, in some
parts of the country, this figure can be much higher. The total cost is
also affected by the number of hours for which care is needed and the
number of children that the parents are placing in the care situation.
Weekly rates for a toddler in a licensed day care center in 2005 were:
Area
|
Setting
|
Weekly Cost for Full-time Care
|
Libertyville, Illinois
|
Suburban
|
$200
|
Round Rock, Texas
|
Suburban
|
$220
|
San Jose, California
|
City
|
$400
|
Saint Paul, Minnesota
|
City/Suburban
|
$250
|
Lexington, Kentucky
|
City/Suburban
|
$138
|
Tampa, Florida
|
City
|
$100
|
Ottawa, Ohio
|
Rural
|
$105
|
The cost of childcare is often one of the biggest variables in
the decision regarding childcare. Families desiring childcare must
first decide if they can afford it. Those parents who do not have a
great deal of disposable income must balance the value of the income
they produce against the cost of purchasing care. Care costs can be
expensive. As some consider the costs involved, they look at whether
that payment makes sense or whether one parent will end up working
simply to pay the childcare bill. Particularly when a family has to
provide care for multiple children, it can easily be the case that the
costs for professional care actually exceed parental income. When this
is the case, families often consider whether it is feasible and
desirable for one parent to stop working and remain at home with the
children. While this option eliminates the childcare payment, it also
reduces the income available to the family to pay bills and support the
child. Ultimately, however childcare is arranged for, the cost of that
childcare, measured either in terms of the cost of paying for
professional care or in lost income, must balance out in the family
budget or financial trouble will result.
Families come up with a variety of ways of making childcare feasible
(whether they pay for that childcare in cash, or in lost income). For
example, parents who forgo income to stay home and take on a caregiving
role are sometimes able to find work-from-home opportunities that allow
them to contribute to the family income. Sometimes it is possible for
one parent to arrange with his/her present employer to telecommute
(work from home) for part or all of his/her hours. Alternatively, the
parent may accept employment working from home for a different company
or in a different career area. The Internet has opened up a variety of
possibilities for work-at-home opportunities that the enterprising
parent can consider. Finding appropriate arrangements and positions can
be challenging, but they can be worth considering when making the
childcare decision.
If the family income decreases as a result of the need for
childcare, the family can choose to create a new budget and reduce
spending in order to meet the loss of income. This reduced spending can
occur in a variety of ways. Some families will determine that the price
they are currently paying for housing is no longer affordable and will
choose to move to a different area or seek a smaller house/apartment in
their current location. Families also reduce spending by not eating
meals out, packing lunches to take to work, disconnecting cable
television or Internet services, canceling news and magazine
subscriptions, not buying new clothing or household items regularly,
and reducing monies allocated towards entertainment needs, including
not going out to movies or renting DVDs/videos and not purchasing
electronic items.
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