Where the money goes

[Melissa Burnell]

Where the money goes

Before you can budget, you need to know where the money is going.

“The top five expenses for working families are housing, child care,

health insurance, food and clothing,” says Yasmina Vinci, executive

director of the National Association of Child Care Resource &

Referral Agencies in Washington, D.C

Child care, ranked the second-highest cost, consumes an average 9

percent of

America’s working families’ monthly income, according to a study

released by

the Urban Institute last year.

The harsh reality is that the cost of child care is directly related

to its

quality.

“Parents have less money when their children are young, and that’s

when the

costs for care are so high,” says Vinci. “Even so, this is not the

place to

cut corners. Our children are an important investment. We know that 90

percent of the brain’s development takes place before age 5.”

What’s a mom to do?

Examine carefully all your options. Weigh safety, kindness and

professional

attitudes of caregivers, ratio of children to teachers and the

happiness

factor when making your decision. Visit several centers before

placing your

child. Do your research and be flexible to maximize savings.

Talk to local experts

Find and talk to your local child-care specialists. Child-Care

Awareness is a

nonprofit initiative that helps parents find quality care in their

communities. This organization will help you sort out your options,

from the

cost to the quality. Plus, they’ll help determine whether you qualify

for

government subsidies or other financial grants if your income is

borderline.

Talk to your employer

Many companies offer a flexible spending account for dependent care.

Flexible

spending accounts allow you to deduct up to $5,000 in pretax dollars

annually

from your paychecks. You can withdraw this money to pay for licensed

child-care expenses.

Your employer may have a partnership with a day-care facility that

provides

discounted rates to its employees. Again, quality before cost

savings! Make

sure you’re comfortable with your child’s care.

More employers are offering flexible scheduling. Ask about flexible

hours,

job-sharing or telecommuting. Arrange your work schedule to alternate

with

your spouse’s or relative’s to reduce the amount of time your child

will have

to spend in daycare.

Do you know a co-worker with similar backgrounds and parenting styles?

Perhaps you can split the cost of home child care.

Take the pre-K initiative

If your public school district offers a half-day pre-K program for

4-year-olds, enroll your child. It’s free and reduces child-care

costs to

half-day rates.

Another pre-K initiative, Head Start, offers early learning child-

care for

100-percent poverty level and special-needs children. They often have

a

working collaboration with child-care facilities for additional hours.

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