Including daycare expenses in your monthly budget

July 20, 2022

Including daycare expenses in your monthly budget can be a challenge, especially if you are not used to thinking about them. But with the cost of daycare continuing to rise, it is important to factor them into your overall spending plan. 

Here are some tips for making sure your daycare costs don’t throw your budget off balance.

Cost of Daycare

The cost of daycare can be prohibitive for many families. In some cases, it can be more expensive than a mortgage payment. For a family with two working parents, the cost of daycare can put a serious strain on the budget. 

Take a look at the National average weekly child care rates for 2019-2021 according to


childcare rates 2019-2021 -



These rates are during the covid 19 pandemic. The cost of daycare since the beginning of the pandemic has increased a total of 41%. This is an annual cost of $14,117. (

DayCare expense breakdown

On average, child care expenses can range anywhere from $25 to $50 per day. This price can vary depending on the type of care required, the location of the facility, and the age of the child. Infants and toddlers generally require more supervision and thus tend to be more expensive than older children. 

Daycare expenses can include

  • Cost of tuition
  • Food
  • Transportation,
  • Additional fees are charged by the provider. 
  • Many daycare centers also require a deposit in order to hold a spot for your child. 

When you factor in the cost of full-time daycare, it’s no wonder that so many parents are struggling to make ends meet. The high cost of daycare is one of the main reasons why so many families are struggling to get by. It’s an expense that takes away from other necessary costs, such as housing and food. 

For many families, the cost of daycare is simply too high to afford.

Stay at home or pay for daycare?

For many parents, the decision to stay home with their children instead of paying for daycare is a financial one. But is it cheaper in the long run?

The pandemic has resulted in many parents rethinking their childcare options. For some, the cost of daycare is simply too high, especially when many families are struggling financially. Others are concerned about the health risks of sending their children to daycare. 

As a result, more and more parents are choosing to stay home with their kids.

While this may seem like the cheaper option, it’s important to consider all the factors involved. 

Stay at home

In recent years, more and more parents are choosing to stay home with their children instead of sending them to daycare. There are a number of reasons for this trend. 

For one, parents want to be more involved in their child’s early development. They feel that they can provide a richer, more individualized experience at home than a daycare center can. 

In addition, parents are increasingly aware of the importance of bonding with their infants and young children. Staying at home allows them to do this more effectively than if they were to leave their child in daycare. 

Finally, many parents simply cannot afford the high cost of daycare. With the economy still struggling, more and more families are finding it difficult to make ends meet. It becomes cheaper for them to give up their monthly income instead of paying for childcare. 

As a result, staying home with the kids is often the only option. Whatever the reason, it’s clear that parents are increasingly choosing to take an active role in their child’s upbringing.

Paying for Daycare

There are a variety of reasons why parents may choose to put their children in daycare instead of staying home with them. For some parents, it may be a matter of having to return to work in order to support their family financially. Others may feel that their child will benefit from the social interaction that daycare provides. 

Still, others may simply appreciate the respite that daycare offers from the challenges of parenting.

Whatever the reason, there are a number of benefits that daycare can provide for both children and parents. Children in daycare have the opportunity to develop important social skills, such as sharing and cooperation. They also benefit from being exposed to a variety of different activities and ideas. 

Meanwhile, parents who use daycare can enjoy some much-needed free time to pursue their own interests or simply take a break from the demands of parenting. With so many benefits to offer, it’s no wonder that daycare is still a popular choice for many parents.

Budgeting Steps

When it comes to budgeting, there is no one-size-fits-all solution. Everyone’s financial situation is unique, and what works for one person may not work for another. However, there are some general steps that can be taken to make room in your budget for a necessary expense like daycare.

First, take a close look at your income and expenses. Where can you cut back on spending in order to free up some extra cash? Maybe you can pack your lunch instead of buying it every day, or cancel your cable subscription.

Monthly Budget Expenses

Next, see if there are any ways to increase your income. Could you pick up a few extra hours at work? Or start freelancing on the side? Any extra money you can bring in will help make room in your budget for daycare.

monthly budget income

Finally, talk to the daycare provider to see if there is any flexibility in the payment schedule. Perhaps you could arrange to pay half of the fee upfront and the other half at the end of the month. This may make it easier to manage your budget and keep up with your payments.

Making room in your budget for a necessary expense like daycare takes some effort, but it is possible with a little creativity and perseverance. By taking these steps, you can ensure that you have the funds you


The rising cost of daycare can be a challenge for any family, but there are ways to make it work. By evaluating your spending and making some small changes, you can create room in your budget to cover the cost of daycare. 

When deciding whether to stay at home or pay for daycare make sure you do your research and pick the best option for your family.  If you need help getting started, let us know! Our team is here to help you get on track and save money.