Single mother with son at home. She is using computer for paying bills or online shopping. By Jasmine Browley ·Updated May 23, 2024
Raising a child just got more costly according to a recent report from GoBankingRates.
The personal finance news platform analyzed U.S. Bureau of Labor Statistics data to gauge the price parents have to pay for typical childcare needs, namely daycare starting at two years old through 12-years-old across various major US cities. The outcome? $250k to $300k per child. Per data from Zillow, it takes nearly $2k for the average American family to cover typical childcare related expenses.
GoBankingRate’s findings were determined by the combination of the cost of childcare and the cost of living in each city over a 10-year period. For example, combined cost of childcare and cost of living in San Francisco sits at around $308,000. Milwaukee and Minneapolis unexpectedly came in as two ofmost expensive cities in the nation for childcare with costs averaging $139,200+ in Milwaukee and more than $133,000 respectively.
Fortunately there are some steps that can be taken to cut the cost of caring for your bundle of joy.
Identify and use tax credits
Although tax-filing time has passed, it still worth researching tax credits that can be used to offset costs for your child care. Working with a tax professional to help you max out your deduction amount can help put thousands back in your pocket.
Consider a babysitting co-op
A babysitting co-op is a sort of credit system that can equate to babysitting hours. Using sites like Care.com to find a group near you that can help you save money on babysitting, which, on average can cost up to $17/hour on average.
Look into the Childcare and Development Fund (CCDF)
This is for low-income families and caregivers and aim to support households pay for childcare so parents can work, attend school and/or better achieve work-life balance.
Research childcare scholarship opportunities
Local summer camps provided by YMCA and community programs often have low-income options for families under the average income threshold. Be sure to ask a local rep about any grants or scholarship you may qualify for.
Dependent Care Flexible Spending Account (DCFSA)
A Dependent Care Flexible Spending Account (DCFSA) is typically used for daycare expenses for children younger than age 13. You can apply during the annual Federal Benefits Open Season that typically occurs from mid-November to mid-December.
The post New Data Reveals It Can Cost On Average $300K To Raise Children In Major US Cities—Here Are Some Money-Saving Tips appeared first on Essence.
