Summer is here. While a break from school projects and homework can be a relief for both parents and kids, many working parents are faced with a new challenge—how to budget for childcare over the summer.
With inflation rising, nearly everything is more expensive, giving parents added concern about affording hefty childcare costs. Fortunately, you can do a few things to make budgeting for summer childcare a little easier, including creating and maintaining a spending plan.
This article will explore the cost of childcare, how it fits into your spending plan, and how to budget for these costs.
It’s no secret that childcare is expensive. Even a few months of paying for care could set you back thousands of dollars. According to the U.S. Treasury’s 2021 report on childcare in the United States, the average household with one young child pays about 13% of their earnings toward childcare. For parents with multiple children in need of childcare.
Keep in mind that the 13% figure can vary depending on your state. For instance, parents in high-cost living areas may pay more for monthly childcare costs than those in lower-cost living areas. It’s a good average to remember as you’re budgeting for summer childcare costs.
Despite the high cost of childcare, it’s still an essential part of your spending plan. Arranging care for your kids may allow you the opportunity to go to work and provide for your family. It’ll also give you more space to build your skills and create a feeling of camaraderie with work colleagues. Quality childcare can be invaluable, especially if your long-term professional goal is to get promoted and make more money.
Plus, childcare has its positives for your kids, too. It can be a good opportunity for children to keep a consistent routine and socialize with their peers during the summer. Some programs even offer a structured schedule with academic support for kids so they stay on track for the upcoming school year.
If you’re trying to figure out how childcare will factor into your budget in June, July, and August, we’ve pulled together a handy chart you can use for budgeting purposes. Based on U.S. BLS consumer spending data from 2019, this chart gives insight into the average monthly costs of everyday expenses like housing, food, transportation, and childcare.
Note that these figures should serve as guidelines, and you can customize this chart as needed to reflect your family’s monthly costs accurately. And since prices can vary from state to state, you may find your total costs in specific categories are lower or higher than what’s included here depending on where you live, how many people are in your family, and other factors.
|Type of Expense||Average Monthly Cost|
|Insurance and Pensions||$597|
PayActiv’s award-winning digital wallet uses an app and card combo to help you get ahead of childcare costs. Here are 4 ways these free-to-low-cost tools can help you pay for childcare this summer.
Good luck! All of us at Payactiv are wishing you the best on your search for childcare this summer. Have a personal finance question? Send us an email at GoodCents@payactiv.com.
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