Money Matters: If you’ve ever looked at your childcare bill and thought, “Did I accidentally enroll my kid in a private prep academy?”—you’re not alone.

Childcare costs have gone full Wall Street bull market, with some parents paying more for daycare than their mortgage. But savvy moms and dads aren’t just taking it on the chin—they’re finding clever ways to game the system and cut costs. Below are eight parent-approved hacks to keep your wallet from crying louder than a skipped nap meltdown.

Survey says: The US Department of Health and Human Services (HHS) considers daycare affordable when it costs no more than 7% of household income. According to the 2022 Cost of Care Survey, 72% of parents say center-based care for their infant costs 10% of their family’s income, while 51% spend more than 20%.

On today’s agenda:

😎 Our Favorite Resources
👍 8 child care hacks for saving money
👌 The #1 Strategy Parents Use to Slash Childcare Costs
🤷‍♀️ What’s up for next week

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Cool Links

Our favorite resources

💵Budgeting

Start with childcare.gov to locate assistance programs that can help with the cost of child care.

👀ICYMI

Now that you’ve successfully navigated your way into a cheaper childcare deal, why stop there? Check out our issue on debt negotiation and turn those savings into a college fund—or an all-inclusive getaway where someone else handles the tantrums.

📜Quote

"You want to know what it's like having a fourth kid? Imagine you're drowning, then someone hands you a baby." - Jim Gaffigan

Today’s Main Event

The “No More Daycare Robbery” Playbook

1. Use a Family Member or Trusted Friend

If you have a grandparent, relative, or close friend who is willing to watch your child for part of the week, you could save significantly on daycare costs. Even one or two days of free care per week can cut expenses by 20-40%.

If you feel a little guilty, consider offering an exchange, like running errands or helping with household tasks in return for childcare.

2. The Nanny Share Power Move

A full-time nanny is bougie. A shared nanny? Genius. If you’ve got a neighbor or friend with a similar schedule, split the cost and get VIP childcare without the VIP price tag.

Where to start? Look for another family with a child of a similar age and compatible schedules. You can also use platforms like Care.com or Sittercity to find nannies open to sharing arrangements.

Families save 30-50% compared to hiring a solo nanny, that’s more money in your pockets for all those other childcare expenses.

3. Work Perks You’re (Probably) Sleeping On

Your HR department might be sitting on a goldmine of childcare benefits, but most parents never ask. Some companies offer childcare stipends, FSAs, or backup care programs—aka free money.

Action Step: Call HR and ask, “What childcare benefits do we offer?” You might uncover some serious savings. Check it out…

• Dependent Care FSAs: These allow you to set aside up to $5,000 tax-free per household for childcare expenses. That could translate to $1,500+ in tax savings annually.

• Employer-Subsidized Care: Some companies reimburse employees for childcare costs or provide on-site daycare at a discounted rate.

• Backup Care Benefits: Programs like Bright Horizons offer emergency childcare at lower costs for employees of participating companies.

4. Work Schedule Tetris: The $5K Trick

If you and your partner can tweak your work hours—one starts early, one works late—you can dramatically cut back on paid childcare. And it doesn’t have to be all or nothing.

Talk to your employer about flexible work arrangements, such as compressed workweeks, remote work days, or alternative shifts.

If both parents can shift just two hours each, you could cut down on aftercare or full-time daycare needs significantly.

Need a little incentive? Parents who do this save $5,000+ a year. If your job has flexible hours, it’s worth a quick chat with the boss.

5. The Government (For Once) Has Your Back

There’s actual money on the table if you know where to look. Depending on your income, you might qualify for state subsidies, tax credits, or employer-sponsored childcare accounts.

Start here for savings that add up:

• Child & Dependent Care Tax Credit: You can claim up to $2,100 per year in tax credits for childcare expenses.

• State-Specific Subsidies: Many states offer childcare assistance programs based on income levels. A quick Google search of "[your state] childcare subsidy" can point you in the right direction.

• Military & First Responder Benefits: Families in the military or public service may qualify for additional childcare subsidies through programs like Child Care Aware of America’s Military Child Care Assistance

6. Enroll in a Pre-K Program

Many states offer free or low-cost pre-kindergarten programs for children as young as three or four. These programs can replace the need for full-time daycare while providing high-quality early childhood education.

How to get started: Check your state’s education website to see if your child qualifies for free Pre-K. You can also check out childcare.gov included in our link section.

7. The Sliding Scale or Income-Based Childcare Centers Hack

Some daycare centers offer sliding scale pricing based on income, meaning lower-income families pay reduced rates. There are also nonprofit childcare centers and faith-based programs that provide affordable childcare options.

Search for “income-based childcare” or “sliding scale daycare” along with your city or state.

The #1 Strategy Parents Use to Slash Childcare Costs

The Childcare Co-Op Hack: Teamwork Makes the Dream Work

Why fork over thousands to a daycare when you can team up with other parents and outsource the chaos? Welcome to the childcare co-op—where a small group of families takes turns watching each other’s kids, cutting costs, and avoiding the “Wait, how much??” shock every month.

What is a Childcare Co-Op?

A childcare co-op is like a babysitting exchange on steroids. Families get together, pool their resources, and take turns providing care. You can go informal with just a few buddies or go all-in with a structured plan and hired help. Either way, it’s a wallet-saver.

Money, Money, Money

Why pay a nanny’s full salary when you can share it? With a co-op, you can cut costs by 30% to 50%. That means more money for other “important” things, like coffee, or dare we say, a vacation that doesn’t involve Disney.

How to Start a Co-Op (Spoiler: It’s Easier Than You Think)

1. Find Your Crew: Reach out to other parents—community groups, social media, or your neighbor who’s just as desperate for a break as you are.

2. Plan it Out: Figure out who needs care when and how it all works. Flexibility is key, but a little structure goes a long way.

3. Get Legal: Draft a simple agreement that outlines everyone’s responsibilities—because when kids are involved, it’s good to have clear expectations.

4. Know the Rules: Research local childcare laws to keep things on the up-and-up.

Resources for Launching Your Co-Op

• Cooperatives First: A no-nonsense guide to starting your co-op.

• Nolo: Legal help to keep your co-op legit.

• Child Care Aware: For all things childcare co-op-related.

So, gather your fellow parents, and let the savings begin!

Until Next Time

What’s Up Next Week

And there you have it—eight rock-solid ways to keep your childcare costs from devouring your paycheck like a ravenous toddler at snack time.

Whether you're swapping babysitting shifts, playing schedule Tetris with your partner, or finally cashing in on that HR freebie, the key takeaway is this: daycare doesn’t have to cost more than college tuition. So go forth, fellow budget warriors, and put those savings to good use—maybe even on a date night where no one asks for a juice box.

Check back next week as Nico declares war on overpriced subscriptions and every last penny-pinching fee trying to sneak past your budget.

P.S. Know a parent drowning in daycare bills? Be a hero—forward this their way.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.