Average cost of daycare for 1 year old: Understanding the True Cost of Child Care for Infants and Toddlers
Minnesota Baby Steps – What are Childcare Costs, How to Save
Economic Policy Institute reports that the average cost of providing center-based care for an infant in the U.S. is $1,230 per month. The cost in Minnesota is $1,341 a month – infant care in Minnesota costs 43.3% more per year than in-state tuition for four-year public college. The federal definition of affordable childcare places costs at 7% or less of annual household income. The cost of center-based infant or toddler childcare does not meet this definition in any state, making childcare nearly prohibitive for some.
Now, thanks to passage of the American Rescue Plan Act (ARP Act) of 2021, the child care sector will receive a total of more than $50 billion in direct relief funding. This bill, based on President Biden’s historical American Rescue Plan, provides $39 billion in desperately needed child care relief funding.
Of the $39 billion included in the ARP Act, nearly $15 billion will provide expanded child care assistance through the Child Care and Development Block Grant (CCDBG) to support families and providers, including supporting the child care needs of essential workers. The remaining nearly $24 billion creates a stabilization fund for eligible child care providers.
Even with this assistance, affording childcare will be challenging. To help, some employers are stepping up to offer day-care centers for employees or to pay for backup childcare if an employee’s first option falls through. New early-childhood startups may offer employer-sponsored childcare while some providers are helping neighborhoods launch child-care centers in peoples’ homes. But if your place of employment doesn’t offer programs like these, here are three ideas for you to consider:
1. Enlist the help of friends and family.
If you have family nearby, the easiest way to reduce childcare costs is with relative care. And although you should always offer to compensate them, the cost will likely be less than what you’d pay at a center. Another perk? A family member might be able to adjust their schedule to your needs, while a contract provider might charge additional fees.
2. Trade babysitting services.
Whether it’s with another family in the neighborhood or someone from your baby group, trading babysitting services is a cheap option that gives the other parent a break—for free. Here’s how it works: one of the other parents comes over to your house to watch your kids while you go out, and then you return the favor at another time.
3. Join or create a babysitting co-op.
A little more organized than trading one-for-one babysitting services, this option takes effort to get started and works better when more families are involved, but it’s worthwhile once it is up and running. Families earn points for babysitting another family’s kids and in turn, they can spend those points on babysitting services from the group. And while you can use the services at night, depending on your child’s age, it’s fun for the kids to have playdates together which sometimes means less work for the parents.
Childcare costs have the potential to absorb a large portion of a family’s budget, but with a little resourcefulness… you got this.
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How Much Does A Baby Cost?
Ever wonder how much it costs to raise a child? Expenses such as food and clothing start to add up the moment a baby is born. Learn how much you can expect to spend during the first year of your child’s life.
List of monthly child expenses.
Admit it. Babies are cute, but they come with a big price tag. According to a US Department of Agriculture report, the average middle-income family spends between $12,000 and $14,000 on child-related expenses each year.1 For newborns, the cost is higher. Some studies show numbers ranging from $20,000 to $50,000 for the child’s first year of life, depending on location and household income.2
Beyond the general items, like a stroller, crib, or car seat, here are some estimates of what you can expect to shell out in your baby’s first year.
Baby expenses for month 0.
Some significant purchases are required in advance of your baby’s birth. There’s no established list of necessary items, but you’ll probably invest in a bassinet, bottles, clothes, and a carrier for when your child arrives. Costs can span a wide range, but budget for $1,000 minimum to cover what you’ll need at the start.
Month 1 – The biggest baby expenses.
The first month of your baby’s life may be the priciest, because it includes maternity care, the cost of delivery, postnatal care, and a hospital stay.
The numbers can vary depending on where you live, what kind of birth you have, and your insurance policy. While birthing costs in some states can exceed $27,000 the average cost is usually around $10,000.
Months 2 and 3 – Feeding and daily care expenses.
Figuring out a sleep routine is the biggest challenge here. The good news is that babies usually don’t require much beyond breastmilk or formula and diapers at this point. If you’re breastfeeding, your costs will be lower (aside from the one-time expense of a pump, which costs anywhere from $40 to $185), while powdered formula will run you between $70 and $150 per month.
Add about $60 for bottles and $75 for the monthly diapers and wipes you’ll go through. There are vaccinations your baby should get and a couple of visits to the doctor during these months, which should be budgeted for as well. It’s also time to start assessing your future financial goals. Estimated monthly amount: $300.
Month 4 – Monthly childcare expenses.
If you return to work after the baby is born, childcare could take up the lion’s share of your budget starting this month. According to Care.com data, weekly childcare costs have risen significantly over the past six years.
The average weekly childcare cost for one infant is $565 for a nanny, $215 for a daycare or childcare center.3 These costs vary among states, and each family’s arrangement with their provider, but a budget should be in place if you need care for your child while you work. Estimated monthly amount: $2,260.
Months 5 and 6 – List of baby expenses as they grow.
Sometime around the five-month mark, the baby reaches a milestone in development and begins eating solid foods. Parents often start with purees, which you can easily make yourself. Compared with food for older kids, babies still get the bulk of their calories from milk or formula. But plan on spending roughly $50 a month on their applesauce, oatmeal, and avocados.
Your growing baby is fitting into new clothes on a regular basis now. Baby clothes are the most common gift that new parents receive, but the average cost of clothes is around $50 a month for the first year. Using hand-me-downs or shopping at second-hand clothing stores can help you save in this area. Estimated monthly amount: $1,100.
Months 7,8, and 9 – Baby safety expenses per month.
Babies typically begin crawling around this age, so now’s the time to put up safety gates, install door locks and knob covers, and outlet plugs. Babyproofing can cost anywhere from $100 to $1,000, depending on the size and layout of your home. Estimated monthly amount: $1,200.
Months 10 and 11 – Babysitting expenses for your baby.
By this time, you may be thinking about a babysitter, maybe for a few hours here and there or for an occasional night out. If you don’t have a friend or family member to watch your child, you may have to consider adding babysitting into your childcare budget.
According to Care.com, parents paid after-school babysitters an average of $16.20 per hour to care for one child for about three hours a day, or a total of 15 hours per week. But the average doesn’t necessarily tell you what you’ll pay a babysitter in your specific area, nor does it factor in considerations like the regularity of babysitting work that you are offering and the duties required.4 Estimated monthly amount for a babysitter: $975.
Month 12 – First year of monthly child expenses complete.
Congratulations, you made it through your first year of parenting! By this point, you should have an idea of what’s needed in your monthly baby budget, so hopefully there won’t be any surprise expenses. As you prepare for the second year, start looking at ways you can save on childcare and new items you’ll need. And plan for an additional $50 this month to treat yourself to a celebration. Estimated monthly amount: $1,300.
The benefits of life insurance for children.
Now that you’re a new parent, you should consider child life insurance. Life insurance can give your child an invaluable head start. If offers many of the same benefits as regular whole life insurance, but with lower premiums. The benefits include:
- Lifetime protection
A life insurance policy purchased for your child can provide death benefit protection into adulthood. - Cash value that grows
A child’s life insurance policy can accumulate cash every year that your child can access it for future purchases and expenses, such as college tuition, a down payment on a home, or retirement. Accessing cash value will reduce the death benefit and available cash surrender value. - Tax advantages
Cash value accumulates tax-deferred and can be accessed generally income tax free, if structured properly. - Low premiums
With this type of permanent life insurance, it’s possible to lock in the premium at the child’s current age for life. - Guaranteed future insurability
Once the policy has been issued, coverage cannot be canceled if all required premiums are paid.
Having a baby can be an amazing journey filled with excitement and wonder. While variables around geography, childcare needs, and insurance coverage may impact how much you spend on your child, there are clear advantages to working with a New York Life agent early on to develop a financial strategy for your child.
1,2 Mark Lino, “The Cost of Raising a Child,” U.S. Department of Agriculture, February 18, 2020. Usda.gov
3 “Childcare Costs More in 2020, and the Pandemic Has Parents Scrambling for Solutions,” Care.com, June 15, 2020. Care.com
4 Ashley Austrew, “How Much Does a Babysitter Cost?” Care.com, July 10, 2020. Care. com
Frequently asked questions from parents about Winnie the Pooh Kindergarten
What information do you need to start going to kindergarten?
It is necessary to pass 2 tests: for worm eggs and enterobiasis. You also need a certificate from a pediatrician (standard form) that the child is healthy and can attend kindergarten. If the child has an allergy, you must bring a certificate from the allergist or just a list of what foods he is allergic to.
My child is 1 year 4 months old. Can I bring him to your kindergarten now?
We accept babies from one and a half years old. This is due to the fact that at this age the child becomes more independent, therefore he is able to be in a team of children. At the same time, the teacher can pay attention to all the children in the group, and not just him alone. But, if your child at 1.4 is already quite independent (holds a spoon, does not constantly ask for pens, etc.), then you can bring him to our kindergarten right now. At the very least, we advise you to come for a trial day (absolutely free), during which both you and the teacher will understand whether it is possible for the baby to start going to kindergarten. After all, every child is different.
How long does the adaptation period last for a child?
All children are different, so each child adapts differently to new environments, people and toys. But on average, the adaptation period takes from one to two weeks. During this period, we advise you to start attending the kindergarten for half a day (until quiet time), while parents should always have the opportunity to pick up the child from kindergarten at any time, because if the kids start to be very naughty, we immediately inform the parents. And as soon as the baby gets used to it and it will be possible to leave him for the whole day, our teachers will inform you about it.
Do you have your own playground? How is the walk going?
Yes, we have a fenced playground located opposite the kindergarten entrance. The site is equipped with the necessary outdoor equipment (sandboxes, swings, etc.). Children are accompanied on a walk by a teacher and an assistant teacher. During the walk, the teacher conducts classes aimed at expanding the horizons and knowledge of the animal and plant world, as well as active games for physical development and health promotion. We monitor the condition of the site: we clean the snow, cut the grass, renew the sand in the sandboxes, and also carry out insect control. In addition, the playground is under 24-hour video surveillance. You can be sure that your child is safe.
How is food organized in kindergarten?
4 meals a day are organized in the kindergarten. All dishes are prepared in their own kitchen by a professional chef. The diet can be adapted to different types of allergies (gluten, lactose, etc.) absolutely free of charge. We cook only from fresh products from a trusted and reliable supplier, without the use of semi-finished products. All pastries are homemade, including bread.
Can I bring my child to kindergarten if he is not very confident with a spoon and does not always go to the potty?
Of course, bring it. For us, this is absolutely not a problem, especially since in the team your child will quickly learn to confidently hold a spoon and go to the potty. In the meantime, he does it uncertainly, our teachers will help hold the spoon and, if necessary, feed him. The same applies to using the potty: at first, the child will walk in diapers, which will be changed in time and carefully, and then he will learn to go to the potty on his own. Do not worry: your child will always be well-fed and clean.
Does the doctor examine children in kindergarten?
Yes, the kindergarten has a pediatrician who examines the children every morning. In addition, the kindergarten has an agreement with a private clinic for the provision of primary health care.
What actions are taken if a child shows signs of illness?
If one of the children has a cough, runny nose, fever, skin rashes and other signs of illness, we send him home with his parents so as not to infect other children.
Is there video surveillance and security in the kindergarten?
Our kindergarten is equipped with video surveillance and an emergency call button for private security. If necessary, you can always contact the leadership of the kindergarten and see the record of the day of interest.
British parents cannot afford kindergartens
- Katerina Arkharova
- BBC Russian Service, London
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Image caption,
The high cost of daycare has made it unprofitable for many new mothers to work
According to a study by two charities, almost a quarter of British parents surveyed go into debt because of the high costs of childcare child.
National charities Save the Children and the Daycare Trust, who conducted the survey, found that the cost of raising children is not as high as in Britain anywhere in the world – a third of all money in a British family goes to pay for kindergarten or babysitting services.
More than half of the 4359 families surveyed are forced to save desperately because of this – on clothes, heating and other necessary things. Two-thirds of the parents said they couldn’t afford not to work and barely managed to pay for childcare.
One in four families compared these costs with the cost of rent or mortgage payments.
The survey also found that spending on children is more tangible in poor families, with more than half of those surveyed falling into this category (those with an annual income of less than £12,000, or 19,1 thousand), admitted that the cost of looking after a child eats up almost all the money earned.
This, in turn, given the high cost of travel on any mode of transport and other “depreciation” costs, makes the work unprofitable enterprise.
“I take the train to work in central London every day. My salary only covers the costs of kindergarten and my own transport, so there is almost nothing left. It turns out that I practically work for the garden. The problem is that almost all preschools are private, and you find yourself completely dependent on them – they will charge you as much as they want for babysitting,” says working mom Jenny Dyer.
Is it profitable to work?
Another study, also conducted by the Daycare Trust this year, found that 25 hours per week spent by a child under two years of age in kindergarten would cost more than £5,000 ($7,900) per day. year. But it’s all over England. In London, prices are, of course, higher, and average about 1.2 thousand pounds (1.9 thousand dollars) per month for an ordinary kindergarten, and for a privileged one, they can reach up to 4 thousand.
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There are practically no free kindergartens and nurseries in Britain, except for some children’s groups, where you can “surrender” the child exclusively in the morning hours, that is, until noon.
“Our research has shown that over the past 10 years, the cost of childcare has risen year on year,” says Keith Groucutt, division director at the Daycare Trust. the financial burden has skyrocketed. With a quarter of those surveyed living in debt because of childcare costs, it’s clear that for many families, work is not worth it.”
Thus, Britons with children now face a serious problem: is it economically profitable for them to go to work, given rising prices and almost static wages?
Last year, 32,000 new mothers decided not to return to work precisely because of the high cost of childcare, according to Louise Colli, head of insurance at Aviva Insurance Company.
Unrealizable goals?
At the same time, experts point out that both for the economy and for the younger generation, it is much better for both parents to work, and it is precisely this goal – building a healthy working society – that was recently announced from high government tribunes, in particular, as a reaction to the pogroms that took place in English cities.
The authorities will, of course, provide some cash assistance for children, depending on a number of factors, such as the parents’ income, the number of children, and whether the family is complete or incomplete.
For example, low-income families can receive a child care allowance of up to £122.50 per month for one child and £210 for two or more children, but considering the above figures for child care, it becomes clear that this help is very relative.
There are also so-called “Children’s Vouchers”, a scheme whereby a monthly amount is deducted from a parent’s salary before income tax and social security contributions, and is transferred directly to the account of a preschool institution.
In addition, the severity of the problem decreases somewhat as soon as the child enters school, and in Britain this happens quite early – as early as five years. To help the British parent and a rather long school day, lasting until 15:30.
But what to do after that, because work usually doesn’t end that early, and there are no free after-hours groups – you have to pay for everything that happens after the last bell of the day has rung.
Children’s charities found in their survey that 47% of low-income families have reduced spending on children’s clubs compared to 22% of families with higher incomes, and it is children from a poorer background who fall into various risk groups – in many ways just due to the abundance of free time and lack of interests.
“We urge the government to allocate more funds to childcare so that people can benefit from working. Because, as it turned out in the course of our research, if this problem is not addressed, then the government’s plans to return people to work and make work justify themselves , will remain unrealizable,” said Kate Groutt of the Daycare Trust.
“Cheap social buffer”
What about grandparents, can’t they come to the rescue of their children and look after their grandchildren?
However, on this issue, too, Britain lags behind the European countries. According to a report last year by Grandparents Plus, together with the Beth Johnson Foundation and the Institute of Gerontology at King’s College London, only one in three new mothers relies on their parents to do this.
In addition, the British government does not financially encourage the older generation to care for their grandchildren, as is done in other European countries, where, for example, parents can transfer part of their paid leave to care for a sick child to grandparents, who sometimes even receive some monetary reward from the authorities for their services.
However, in Britain since April 2011, second-generation parents caring for their grandchildren can receive compensation on a social security card.
However, they are not eligible for other parental benefits such as child vouchers or the ability to work flexible hours.
Experts from the Institute for Family and Educational Problems also warn that poor grandparents are often simply exploited by the state as a “cheap social buffer in child care.”
But it is in this social stratum that early pregnancies occur more often, modern families living on welfare, consisting of “one parent”, are formed, and people become grandparents long before retirement.
“These working-class women, who have been trying to balance family and work for decades, are suddenly discovering that having grandchildren doesn’t make life easier,” explains Professor Katherine Reik from the Institute for Family and Educational Issues. will contribute to the welfare of their grandchildren, but they do not want this to be imposed on them from above by a state that either completely ignores their help or takes it for granted.