Forget the $1,740 Child Care Bill. These Working Moms Found Affordable Summer Options

I pay just over $1300 a month for my toddler’s daycare bill. And as much as I like the proximity of the school and its development, the bill sucks.

But apparently I’m lucky – my husband and I can comfortably afford my son’s monthly bill, even if we think it’s too high. This is not the case for many. Child care costs can be the biggest expense for families, especially those with many children, which can double or triple that monthly bill. An estimated 67% of parents spend more than 20% of their income on childcare, according to a Care.com 2023 Survey.

And now that kids are out of school for the summer, the cost of extra care is weighing on millions of parents. Summer care costs an average of $87 per day, or $1,740 per month per child, according to The latest data from the American Camp Association, a representative said in an email to CNET. For many parents, that’s more than their mortgage or even some college tuition.

I’ve been writing a lot about how lately high inflation and high prices of daily necessities make it difficult for households to support themselves. Finding extra funds for summer care can seem impossible.

So, I decided to find out how some other financial expert parents are affording this high price. I spoke with Alaina Fingal, owner of Organized money and CNET money Member of an expert committeeand Tony husbands, a CNET Money staff writer, to find out how they handle childcare while school is out, and to get some tips for other families struggling with this expense. Here’s what they recommend.

Look for free or low-cost activities

If you don’t need full-time care for your children, but want to enroll them in activities part of the day, Husbands recommends checking out local recreation centers. Many cities offer free or reduced-cost summer care.

Spouses found an inexpensive summer camp in her Chicago neighborhood for her 10- and 12-year-old children. Her children will be able to participate in weekly activities such as tennis and a virtual animation class.

Instead of paying $435 a week (the average weekly cost of day camps), she will pay about $260 for each child for the whole summer. Shocking, I know. That’s $520 for five hours a day, five days a week. And the camp offers lunch, although the spouses will still provide lunch for her children.

“Summer programs in Chicago can be expensive,” Spouses said. “I’m starting to research summer camp options, fees and registration deadlines no later than March. It’s an annual exercise because spots in the most cost-effective and desirable options can fill up quickly, leaving camps that can cost $500 or more per month per child.

Partner with other parents to arrange childcare exchanges

If you work outside the home, you may be able to barter with other parents to share childcare responsibilities. That’s what Fingal does. Instead of paying thousands, she arranged a childcare exchange with her in-laws, who also had children.

Since Fingal and her in-laws have alternating availability this summer, they devised a plan that could save them money and take care of their work obligations.

In the first half of the summer, Fingal and her husband will have their 10- and 12-year-old children, plus her in-laws’ children. Then, for the second half, Fingal will send the children to their in-laws. “Instead of having them for two months, we have them for one; it’s a little easier,” she said.

Taking a month off from work is not something everyone can do. But if you can set up a multi-parent exchange, each family might be able to plan a vacation so that the kids go to a new house every week. Even if you have to pay for childcare for a few weeks, swapping for part of the summer can save you thousands.

Joining local Facebook groups can help you connect with other parents to help coordinate summer care exchanges.

See if your employer or insurance offers childcare benefits

In some cases, you may be able to access dependent care benefits from your employer. If your employer offers on-site daycare, you’re probably already aware of it, but you can ask if they offer seasonal discounts if you just need summer care.

Otherwise, check your benefits, as some employers offer childcare reimbursement up to a certain amount. And if your employer offers a flexible spending account for dependent care, you can set up a sinking fund to save money pre-tax throughout the year, then use the FSA as a debit card to cover dependent care costs , including childcare.

You can also check to see if your employer offers discounts for select daycare providers or camps. And don’t forget to ask your colleagues about local childcare options.

Reduce your expenses by taking advantage of tax credits

Although it won’t help you right now, make sure you deduct all eligible childcare and dependent credits from your tax bill each year. For 2023, the maximum child tax credit was $2,000 per child, and the maximum dependent care credit was $3,000 per child under 13 or $6,000 for two or more qualifying children.

Keep a record of all your daycare expenses handy – Your daycare should have a record of your payments that you can include on your tax return. If you use multiple warehouses, make sure you get each vendor’s tax ID so you don’t have to track them down come tax time. You may get some of that hard-earned money you put aside for summer camp back in a tax refund, depending on your situation.