Figure Out the Expenses on Child Care

Figure Out the Expenses on Child Care

As a parent I am sure that you have already had many headaches in the past that resulted from trying to balance budgets and trying to figure out how to take money from one budget and put it into another. Well the cold hard truth is that child care is not cheap, especially if you want your child to be cared for by a reputable provider. One of the smartest things you can do before you even begin looking for a child care provider is to sit down and figure out exactly what you have to spend each month on child care, or in other words create a budget. If you create a budget before you begin looking for a child care provider you can avoid being crushed by finding the provider of your dreams and then finding out you cannot afford their services.

The following is a brief guide on how to calculate your child care budget and also some ideas on how to save some money.

Calculate Income

The first thing you need to do is find out what everyone’s monthly income is that will be contributing to the child care. Add all of these monthly incomes together and you will get the number of the total household income. You want to make sure to include all forms of income and not just primary employment, every dollar counts as budgets are very precise.

Calculate Expenses

After you have calculated what the monthly income of your household is it is time to make a list of all of your expenses for the household and how much each of them is. This list needs to include everything from groceries, to the electric bill, to your morning cup of coffee from Starbucks

Figure Out What’s Left Over

After you have calculated the monthly income of your household as well as the monthly expenses of your household you need to subtract the expenses from the income. The remaining money will be the money that you will be able to apply to child care without breaking your budget.
In some cases you may find that there is nothing left over for child care and in fact you are in the hole with your current expenses. If this is the case here are a few examples of things you may need to cut out of your life for a while until you are in a better financial situation.

Save Whenever You Can

It is smart as a parent to shop whenever you can when items go on sale. Every little dollar adds up and you will be surprised by how much you can save by buying backpacks or sweaters out of season because they go on sale. Sometimes you can even find them for up to 60% off.

Adjust Your Spending Habits

If you are trying to make a budget for child care it is probably not a good idea to be spending money on things that are not necessary. You have to understand that there is a difference between need and want. For example, child care is a need where as a Starbucks mocha latte is a want.

Buy Used

You can find some really nice clothes and other things at some second hand stores. Your child grows quite quickly in their early stages and there is really no need to be constantly buying them brand new outfits at expensive retail stores when they will outgrow them in a few months. There is nothing wrong with shopping at second hand stores and some of them have some very nice things.
You will probably have to make many changes in your life if you want to be able to afford services from a reputable child care provider.

Did you know that the average cost of in-home child care is about $650 a month and for day care services it will run you right around $1,000 a month? That is quite a bit of money isn’t it? Do not worry, with proper budgeting and with enough searching you will surely find the child care provider that offers everything your child needs at a price you can afford.