As parents, we know that daycare can be expensive. Whether you’re working outside the home or not, childcare costs can quickly add up. But why? And how high is the price for childcare? In this article, we’ll explore the facts about daycare prices and costs in more detail.
Childcare cost: daycare price breakdown
Childcare costs have to cover the cost of the daycare centre and provider themselves, staffing, furniture, equipment like cribs, high chairs and other accessories, utilities, transport, cleaning, food, supplies and activity materials. These all add up! Childcare cost also depends on a number of factors, including your city or country and the specific childcare provider you choose. Childcare costs also vary according to the age of your child is, how long they’ll be in daycare, and how many hours a day the center offers. As you can see there are a lot of factors all of which add up to the final childcare cost bill.
What’s the cost of a daycare?
In 2022, the average weekly childcare cost of a full-time nursery place in Great Britain was over 269 British pounds for under twos, 262 pounds for two-year-olds, and almost 106 pounds for those aged between three and four. Childminder costs were less expensive than nursery costs, with the average weekly cost of a part-time childminder as low as 48.67 pounds for children over two. In the US, the average cost to provide center-based child care for an infant in the United States is $1,230 per month. At a childminder’s the average cost is $800 per month.
Why is childcare more expensive than you think?
Many parents assume that childcare cost will be based on the cost of the provider they choose. However, there are a few factors that can raise the cost of daycare significantly. The first is the city you live in. The cost of daycare in a major metropolitan area will be far higher than in a small town. That’s because there are more licensed childcare professionals in cities, leading to higher wages and more expensive rental fees. The second factor that can raise the price of daycare significantly is the type of provider you choose. A childcare center that offers young children classes through the school day will cost more than a childmind who may only take children for a smaller chunk of the day
Should you pay for quality or price?
Many parents think that the most important factor when choosing a daycare is the price tag. But the truth is that you should also look at the quality of the childcare. There are many factors to consider when choosing a childcare provider, including the quality of the childcare staff (or childminders), safety measures, and the types of activities offered. If you want to get the best value for money, you should choose a provider that offers low-cost services, like meals provided with the childcare fee, and transportation should you need it. This way, you won’t get any nasty shocks with regards to additional costs that need to be covered.
Dealing with high daycare costs
If you’re feeling overwhelmed by the idea of how much it costs to cover childcare, then know you are not alone. In fact according to recent research by Bubble – the UK’s biggest on-demand childcare platform – 67% of parents have considered leaving their jobs buckling under the pressure of juggling childcare costs and arrangements. That said, there are also ways to try and meet the costs and here we have put together a few tips to help you get through high daycare costs:
Shop around
It’s important to shop around and compare prices for childcare providers. You may be able to find a cheaper option in another area. You may be able to do less hours with a childminder, for example, which will dramatically reduce the cost.
Get financial support
You can get help paying for childcare if it’s provided by a:
- registered childminder, nanny, playscheme, nursery or club
- childminder or nanny with a registered childminder agency or childcare agency
- registered school
- home care worker working for a registered home care agency
The UK government provides all families with tax-free childcare, equating to up to £2,000 a year of support for formal providers such as nurseries and childminders. However, while 1.3million families are eligible, around 800,000 are not taking up the help according to research by Bubble.
Find out more on the government website. In the United States, there are various childcare financial assistance options that you can find out about here.
Ask family to help
In the UK according to new data from Bubble, grandparents are retiring earlier than planned to help out with childcare, with one in four (23%) retiring early to pick up the childcare slack. Additionally, more than 1 in 10 grandparents (13%) have dipped into their savings and pension pot to help support their children with childcare costs.
Increase your income
One of the best ways to deal with high daycare costs is to increase your income. If you’re not currently working outside the home, you can take on a part-time job or sign up for freelance work.
The bottom line
Childcare costs are a bitter pill to swallow, no doubt. If childcare is absolutely non-negotiable for you, then it’s important to keep your budget in check so you can work towards a manageable financial situation. This may mean some creative thinking and a big dose of flexibility on your part. Remember, although it feels like a huge undertaking right now, eventually, the financial burden of childcare costs will ease. For many, that day couldn’t come any sooner!
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