4 Ways Payactiv Can Help You Budget for Childcare This Summer

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.

Childcare is Incredibly Expensive

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. 

How Childcare Costs Fit Into Your Spending Plan

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.

Example Budget for a Working Family

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.

4 Ways Payactiv Can Help You Pay For Childcare this Summer

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. 

1. Track your spending, pay bills, and get free 1:1 financial counseling in the free Payactiv app. Download it to start getting control of your finances and allocating money towards childcare in the summer months manually. 
2. When you get the Payactiv Visa® Card*, you’ll unlock the SmartSave. Use SmartSave to find out how much is safe to set aside for summer childcare, set your goal, and watch your fund grow automatically each payday.
3. The Payactiv digital wallet works the best when you set up direct deposit to the Payactiv card, so you can view all your finances and savings goals in one place. Plus, when you set up direct deposit, you can get paid up to two days early1. 
4. If you need more financial flexibility to help you afford summer childcare costs, check to see if your employer offers Earned Wage Access (EWA). Payactiv EWA lets you access up to 50% of your earned wages on-demand. That means you won’t need to wait until the next pay period to pay for summer childcare. In the market for a job with this awesome benefit? Find a job that offers Earned Wage Access today! 

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 [email protected].

All content provided on Payactiv.com/blog/ is for informational purposes only. Payactiv makes no representations as to the accuracy or completeness of any information on this site or found by following any link from this site. Payactiv will not be liable for any errors or omissions in this information nor for the availability of this information. Payactiv will not be liable for any losses, injuries, or damages from the display or use of this information.1 Many (but not all) employers, government benefits providers, and other originators send direct deposits early with an effective date of 1-2 days later. Beginning with your second direct deposit of at least $5 from the same source, Central Bank of Kansas City (CBKC) will post the funds to your Payactiv Visa Card when we receive it, rather than on the effective date. This may result in your having access to the funds sooner. The date CBKC receives your direct deposit and the effective date are controlled by the originator.