Saving Money on Kids

Noting that the US Department of Agriculture estimates that parents with a baby born last year will spend an average of $245,340 to raise this child to the age of 18, US News and World Report, in their article, "How to Make Raising Kids Less Expensive", offered a number of cost-saving tips including give cloth diapers a try, forget the elaborately decorated nursery, and skip "blowout" birthday parties. Then, turning to child care, the article notes:

"Child care can cost as much as a mortgage for some families. In fact, a 2015 Care.com report found the national average for two children in day care is $18,000, while housing is $17,000.... [P]arents may want to consider whether they actually come out ahead by having both parents work.  If extra income is needed, working an opposite shift as your spouse, while not ideal, is another way to eliminate or reduce child care costs.

"Parents should also do the math before paying someone under the table to watch their children.  An unlicensed child care provider may be cheaper, but parents could miss out on a child care credit that could save them a significant amount at tax time."

Contributed by Meghann Hickey at Early Care and Education Consortium

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