Navigating childcare options can be a headache, and that’s before you even get around to paying for everything. And, unfortunately, finding affordable childcare became even more complicated after that Child Care Stabilization ProgramOpens a new window expired, cutting $24 billion in funding for child care services across the country.

As a parent, you’re probably already aware of the daunting task of finding reliable and affordable childcare for your children. “The current state of child care costs can best be described as a silent crisis affecting working families across the country,” says Dennis Shirshikov, professor of finance, economics and accounting at the City University of New York.

Families using full-time childcare pay an average of $320 a week for one child — $16,686 a year, according to the BabyCenter study. These expenses drastically affect the financial goals of most families (84%), with more than half saying they cannot save (54%).

“Essentially, the struggle to afford quality childcare has led many parents to make difficult compromises, such as leaving the workforce, jeopardizing career growth, or accepting substandard care,” adds Shirshikov.

As discouraging as it may sound, there are many legitimate ways to save money on childcare, and there are more options for help and support. Experts share how to build a childcare budget and ways to save on childcare costs.

Strategies to save money on childcare

To save on childcare, you need to understand what options are out there, pool your resources and think creatively – experts share some tips:

Cooperative childcare arrangements

In a shared childcare arrangement, you and a group of parents rotate childcare responsibilities. This approach requires trust and camaraderie between parents, as well as top-notch scheduling. However, this does not work well for every business. “It does require a time commitment, but it can be a godsend for those with a flexible schedule,” says Shirshikov.

“I’ll occasionally watch my best friend’s kids while she’s at work, and then when I’m at work she’ll occasionally watch mine,” says one BabyCenter mom.

Nanny shares

Nanny or nanny shares are when two families share the same nanny, which usually results in a lower rate for each family. Crissi Cole, CEO and Founder Penny FinanceOpens a new windowshe says the role of nanny was invaluable to her when she needed to cut costs to afford childcare. By switching to a nanny from kindergarten, she realized her savings of 40%.

Remote work

If possible, discuss the idea of ​​remote or hybrid work with your employer. While the flexibility of telecommuting doesn’t replace the need for childcare, it can reduce the time and money you need to commute. In turn, this can reduce the amount you need to spend on childcare, as well as give your budget an extra cushion. Telecommuting is also useful when your kids are sick and daycare isn’t an option.

It takes a village and a lot of brains to figure out childcare.

– Crissi Cole, CEO and Founder of Penny Finance

One BabyCenter mom says, “I work from home and two days of my work schedule I will keep the kids at home and use part-time childcare instead of full-time.”

Family help

Not everyone has the possibility of family assistance, and not all family members are available to help. But even a few hours of extended family help can reduce your childcare costs—plus, it’s an opportunity to bond and make memories.

“We have my sister watch (my daughter) instead of our previous daycare and we pay her about half of our previous costs,” says one BabyCenter mom.

Another BabyCenter mom says, “Right now, we use grandparent childcare, but they still have appointments, get sick, and have their own lives. We mostly do, but when we have problems, it also puts a strain on the personal relationship.”

Dependent’s Flexible Spending Account (FSA)

“A dependent care FSAOpens a new window allows parents to set aside pre-tax dollars to cover eligible childcare costs for children under 13, such as day care, summer day camps and after-school programs,” says Ellis. You can contribute up to $5,000 per calendar year, reducing your taxable income, which reduces your overall tax liability.

Child and Dependent Care Tax Credit

Parents with children under the age of 13 may be entitled to tax relief for childcare costs. “Child and Dependent Care Tax CreditOpens a new window can get you up to 35% of qualifying expenses up to $3,000 for one child or up to $6,000 for two or more children,” explains Shirshikov.

State aid programs

There are several government income-based assistance programs that aim to help families afford childcare. This includes programs like Head StartOpens a new window and state-funded subsidies. “To take advantage of these benefits, visit your state’s child care assistance website or contact your local social services office for application guidelines,” recommends Ellis.

Employee Assistance Programs (EAP)

It’s always a good idea to check with your employer or human resources department to find out what childcare assistance options are available there. Many companies offer childcare subsidies or partnerships with local childcare providers at discounted prices, says Shirshikov. “I’ve seen some companies even offer on-site childcare facilities,” he says.

One BabyCenter mom takes advantage of this benefit, sharing, “My company offers 30 days of back-up care, which includes daycare and home care. The babysitters are great.”

In addition to the nanny share, Cole says she used a combination of tools to keep childcare costs down, including working from home, family help and student babysitters, who charged significantly lower rates than daycares.

“No matter what, it takes a village and a lot of brain power to figure out childcare,” says Cole. “In most cases, just being aware of your finances and day-to-day expenses helps you naturally find ways to fund childcare and childcare.”