Little Ones: Cost-Saving Tips for Child Care

Next to rent or mortgage payments, child care ranks as the second-highest expense in a household budget. In this economy, families are feeling this pinch more than ever. Sheila Lirio Marcelo, care planning expert and CEO of Care.com shares her cost-saving tips.

1. Use your dependent care FSA.
If your employer offers a dependent care flexible spending account (FSA), use it this summer for babysitting, nannies and au pairs, community programs, child care centers, or family daycares. These pre-tax dollars are earmarked for child care, and using them for approved types of child care can save you at least 5%. Check with your human resources department or FSA provider for a list of approved, reimbursable expenses and maximum contributions and deductions.

2. Ask your employer about working from home.
Most U.S. employers have become more flexible about working from home part-time, especially given the rising costs for commuters and the efficiency of modern technology. Many are even moving towards a four-day workweek, asking their employees to work longer hours per day but fewer days per week. If you have reliable internet access and a quiet, productive place to work, you could save a bundle on child care costs by telecommuting or working from home part-time.

3. Organize a care swap or co-op with local parents
Other parents at your child's school or in your neighborhood are probably in the same boat. Send an email around to the parents of your child's friends—or to your condo or neighborhood association—to gauge interest in a rotating swap arrangement, with one parent or family taking the kids each afternoon. Five days of the week divided among five parents or families equals only one afternoon of commitment per parent or family. Bingo!

4. Join forces for a care share.
If everyone works full-time, think about hiring nannies or babysitters jointly to take care of multiple kids, and rotate the house at which house the kids are being watched. My rule of thumb for quality child care is that no single babysitter or nanny should watch more than 3 kids under the age of 6, more than 4 kids under the age of 12, and no more than 5 kids total of combined ages. Babysitters and nannies can be your best bet for recruiting a buddy, too: they have friends or siblings they might like to work with, and may offer a shared, discounted rate in exchange for the benefit of companionship on the job.

5. Hire a local college student, teacher, or academic professional
Most students and professors either have their afternoons off or have more flexible schedules, meaning they may work fewer days in the workweek or have shortened hours each day throughout the week. Especially with budget cuts in some areas, teachers may be looking for additional income to cover their own rising expenses.

Have your own tips or advice for saving on child care expenses? Share them with Shoestringers everywhere by posting a comment below.

Sheila Marcelo is a working mom and the Founder and CEO of Care.com. After realizing that many moms like her struggle to find quality care providers for their loved ones, Marcelo structured the online service to enable families to use Care.com to find babysitting, nanny, child care, tutoring, pet care, and senior care providers. She is a leading expert on care planning advice, having appeared on NBC’s "Today Show", CBS's "The Early Show", and "ABC News Now."