Rates for in home child care: How much to charge for child care

How much to charge for child care

Are you considering starting a career in child care but you’re not sure what you should charge? Or maybe you’ve been a child care provider for awhile and feel like you should be making more? Asking for or accepting a lower rate may land you the new job, but (of course) you also want to make a fair wage that you can live on. So when determining your pay, it’s important to know what your child care services are worth.

Pay rates for child care providers can vary significantly due to a number of factors: job type and expectations, your experience, number of children, your location and more. But there are definitely some pay ranges that are standard for each type of child care job. We did some research (so you don’t have to), and here’s what other caregivers are getting paid.

Pay rate by job type

Babysitters

Setting babysitting rates can be a challenge since you don’t always get to communicate with other sitters to compare notes. The good news is there’s some good, hard data on this.

According to the Care.com 2022 Cost of Care Survey, which used payment data from over 3,000 parents across the country, parents paid after-school babysitters — working about three hours a day, or a total of 15 hours per week — an average of $17.40 per hour (or $261 per week).

This rate can fluctuate depending on your skill level, education and experience, as well as the number of children who need care. The most notable factor, though, is the city and state you live in. For example, in Seattle, Washington, the going rate for sitter averages $20.00 per hour, but in San Antonio, Texas, it averages $14.00 per hour, according to the Care.com babysitting rates calculator.

Aside from the location, what’s going to make you a little more dough? Education and training. Having an early childhood education degree or credits or training courses and certifications, including infant care certification, water safety certification and special needs care, can help boost your career — and hopefully your pay rate, too!

It’s important to note that you should be paid fairly. At the very least, you should make above the federal minimum wage ($7.25 per hour, as of August 2022) and above your state, city or county’s minimum wage, which may be even higher.

To find the going babysitter rate near you, enter your ZIP code into our babysitting rates calculator.

Nannies

Nannies provide personalized care, usually full time and in the family’s home. That may be why they’re among the highest paid child care providers.

Nannies caring for one infant and working 40 hours per week made an average of $17.35 per hour (or $694 per week), according to the Care.com 2022 Cost of Care Survey. This means that full-time nannies can potentially make an average of about $36,088 per year, depending on the paid time off situation.

In general, a nanny caring for more than one child can expect to earn a little more than a nanny who’s in charge of just one kid. Experience and job expectations can play a factor in rates, too, as well as location. Currently, in Los Angeles, a full-time nanny earns an average of $21. 00 per hour, and in Orlando, Florida, they average $15.50 per hour, according to current nanny pay rates for top cities via Care.com.

To find the going rate near you, enter your ZIP code, experience level, number of children and hours per week into our rates calculator.

Child care workers and administrators

Interested in a day care job? According to the U.S. Bureau of Labor Statistics, in 2021, child care workers earned an average annual income of $27,680 — which boiled down to an average rate of $13.31 an hour. For child care administrators at preschools and day care centers, however, the average was at lot higher at an annual income of $53,800, or $25.87 per hour.

Nursery or preschool teachers

Nursery or preschool teachers’ salaries can depend significantly on their location, type of degree and the school’s set rates.

That said, the Bureau of Labor Statistics notes that preschool teachers (with the exception of special education teachers) earned an average annual income of about $36,460 in 2021 — at an average rate of $17. 53 per hour. Nursery and preschool teachers can often boost their annual salaries by moving over to a private preschool, which usually has the means to offer better pay, or getting trained and certified to work with children with special needs. Special education teachers at the preschool level made $71,970 in 2021, or about $34.60 per hour for full-time, year-round positions.

Average child care pay rates by job type*

Child care job type	Hourly	Weekly	Annually
Part-time babysitters (based on 15 hours per week)	$17.40	$261	$13,572
Full-time child care workers	$13.31	$532	$27,680
Full-time nannies	$17.35	$694	$36,088
Full-time nursery or preschool teachers	$17.53	$701	$36,460
Full-time child care administrators	$25. 87	$1,035	$53,800
Full-time special education preschool teachers	$34.60	$1,384	$71,970

* Babysitter and nanny rates and salaries based on the Care.com 2022 Cost of Care Survey; all others from the U.S. Bureau of Labor Statistics.

Factors that will influence your pay rate

Reminder: The above rates are just averages, generalizations and general guidelines. You’re not going to make exactly what another child care provider does — and for a variety of different reasons. Just going from the suburbs to the city could mean a sitter makes up to double or even triple the pay. And of course, nannies and day care teachers with 10 years of experience are going to earn more than a newbie does.

Keep all the factors of your employment, your experience and your job expectations in mind when setting your rates. Here are some of the most important ones to consider.

Geographical location

As mentioned above, different cities have different costs of living (e. g., cost of food, housing, etc.). This means child care professionals may have to charge different pay rates so that they can cover their basic expenses — and, ideally, still make a profit afterward. For example, a babysitter living and working in a rural area will probably charge less than a babysitter who lives and works in a huge city.

If you’d like to find out what other child care providers are charging in your neck of the woods, check out our handy rates calculator.

Job requirements

Another factor that should influence your rates is the type of care a family expects you to provide. This includes the number of children they want you to care for, the number of hours they expect you to work and the time of day that they want you to be “on duty.”

If a family expects you to perform additional services outside of the traditional realm of “child care duties” — such as housekeeping, pet care, tutoring or providing overnight care — that can also justify a higher rate.

So if you want to make more money, consider offering additional services that you’d be willing to perform. This strategy will enhance your “value-add” for prospective families and could even increase your likelihood of landing a job.

Level of skill and experience

Many families prefer to hire child care providers who have previous child care experience. Some look for certification in child development or a degree in early childhood education. Other families want a caregiver who speaks a second language or who has specialized experience — whether it’s caring for multiple children, children with ADHD or newborns.

Moral of the story: When setting your rates, take into account your previous work experience, your skills and any certifications and training you’ve received, as well as your education level. And don’t forget to list all of them in your online job profile and resume, so families can see what makes you worth your rates.

Benefits

Full-time household employees (e. g., nannies) should ask hiring families if they’d consider providing them with benefits like health insurance, paid time off and more. These benefits are often built into their salary and may be broken down into monthly or weekly rates.

Final tips for setting your child care rates

By this point, you’ve familiarized yourself with the national averages for different types of child care jobs, you’ve scoped out your competition’s rates and you’ve figured out how much your skills and experience are worth. But you have a little more work to do in order to set your rate.

Ask yourself these final questions to make sure you’ve accounted for everything:

• How far do you have to commute for the job?
• How many children are you being asked to care for?
• Are you caring for kids overnight?
• Are you being offered benefits such as health and dental insurance, 401(k) and paid time off?
• Have you accounted for your added value services (e. g., more education or certifications, increased experience, etc.)?
• Do you know how much tax you’ll have to pay and whether or not it will be withheld from your paycheck?
• Does this job fit your budget needs and will you bring home enough money every month to cover all your expenses?

Starting with what you need to make — and then breaking down what your services are worth — will help you find your pay “sweet spot.” That rate should be enough to cover your monthly expenses, pay your taxes and still have some fun with friends and family.

Average Cost of Child Care 2023

When planning for a baby, there are a number of costs that parents should take into consideration before their bundle of joy arrives. Child care is often the most expensive line item.

Access to reliable child care is essential for families who rely on this support in order to be able to work full-time jobs, attend school or fulfill their other responsibilities. This need was especially evident throughout the pandemic when parents, predominantly mothers, left the workforce in droves as schools, daycares and child care centers shut down or transitioned to remote models. Many women are still recovering from the financial impact.

Despite the need for child care, costs continue to rise for families across the country. In fact, a recent report by the organization ChildCare Aware of America found that child care costs are outpacing inflation by more than 3 percent. This, paired with higher costs of everyday goods like groceries, gas and housing, is making child care significantly less accessible, particularly for lower-earning families.

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Bankrate insight

• The average weekly cost of a nanny for one child in 2021: $694 (Care.com)
• The average weekly cost of a child care or daycare center for one child in 2021: $226 (Care.com)
• The average weekly cost of a family care center for one child in 2021: $221 (Care.com)
• The average weekly cost of an after-school sitter for one child in 2021: $261 (Care.com)
• Most expensive state for hiring a nanny: Washington, D.C.: $855 per week (Care.com)
• The average weekly daycare cost in Washington, D. C. (the most expensive state for daycare): $419 (Care.com)
• Percentage of parents who cite rising child care costs as their reason for adjusting their family plans: 43 percent (Care.com)
• Percentage of parents who spend more than 10 percent of their annual income on child care: 72 percent (Care.com)
• Percentage of parents who spend more than 20 percent of their annual income on child care: 51 percent (Care.com)
• The average amount spent on child care per month: $850 (Babycenter)
• The average amount spent on a nanny per month: $2,450 (Babycenter)

The cost of child care in various settings

The amount you can expect to pay for child care will vary greatly depending on the setting. Some parents might prefer to keep their child at home with a nanny, while others may want to take their child to a daycare center. Some parents may not need full-time care and opt for an after-school care program that gives them the extra time they need to get through their work day.

Here’s a look at the average cost of child care depending on the type of care you seek. These figures are based on the 2021 costs for infant children (with the exception of after-school care costs):

It’s also important to note that the amount you pay will also change depending on the number of children you have, as well as their ages. In most cases, you can expect to pay more for a delicate infant who requires more hands-on attention than you would for an elementary-aged child who is more independent.

With such a wide range of costs, it’s important to weigh your options and determine which environment will best meet you and your family’s needs.

Child care/daycare centers

Home/family care

Nanny/sitter

After-school care

The most (and least) affordable states for child care

Several factors will impact how much you can cover in terms of child care costs, including your location. Here’s a look at the five most affordable and least affordable states for child care, as well as the percentage of your annual income that you can expect to pay for child care, according to 2021 data from ChildCare Aware.

This data — as well as the table below showing the average cost of child care by state — is based on annual care costs for a four-year-old child in a center-based environment, taking into consideration the percentage of the state’s median income needed to pay the costs.

State	Average annual child care costs	Percentage of a single parent’s income	Percentage of a couple’s income
South Dakota	$6,677	22.1%	7.0%
Arkansas	$6,014	23.6%	7.3%
Mississippi	$6,500	30.2%	7.7%
Missouri	$7,465	25.7%	7.8%
Ohio	$7,966	29. 8%	7.9%

• State	Full-time, center-based care (4-year-old child)
  Alabama	$7,280
  Alaska	$9,600
  Arizona	$9,129
  Arkansas	$6,014
  California	$12,740
  Colorado	Data not reported
  Connecticut	$13,416
  Delaware	$10,634
  District of Columbia	$20,117
  Florida	$7,907
  Georgia	$7,899
  Hawaii	$11,058
  Idaho	$7,817
  Illinois	$11,440
  Indiana	$8,748
  Iowa	$9,356
  Kansas	$9,518
  Kentucky	$8,525
  Louisiana	$7,800
  Maine	$8,580
  Maryland	$12,437
  Massachusetts	$15,768
  Michigan	$11,315
  Minnesota	$13,416
  Mississippi	$6,500
  Missouri	$7,465
  Montana	$10,400
  Nebraska	$14,560
  Nevada	$11,090
  New Hampshire	$11,487
  New Jersey	$15,120
  New Mexico	$8,436
  New York	$15,371
  North Carolina	$9,359
  North Dakota	$8,952
  Ohio	$7,966
  Oklahoma	$9,396
  Oregon	$10,800
  Pennsylvania	$10,150
  Rhode Island	$11,700
  South Carolina	$9,941
  South Dakota	$6,677
  Tennessee	$8,759
  Texas	$9,880
  Utah	$8,268
  Vermont	$14,300
  Virginia	$11,804
  Washington	$14,844
  West Virginia	$9,100
  Wisconsin	$10,972
  Wyoming	$8,623

The state of child care today

Child care costs have been on the rise for decades. This is due, in part, to facility closures that occurred during the pandemic. Nearly 9,000 daycares closed in 37 states between December 2019 and March 2021, according to findings from a 2022 survey by ChildCare Aware.

Even more pressing these days is the impact of inflation. As noted above, child care costs are outpacing inflation by several percentage points. At the same time, families’ wallets are being squeezed by higher costs for everyday expenses like groceries, gas and housing. Especially for lower-earning families, a lack of wiggle room in household budgets is making child care significantly less accessible than before.

How parents and guardians are managing the costs

For many parents, coping with rising costs has been challenging. As a result, many have considered alternative options or made bigger lifestyle changes to make ends meet. According to a survey by Care.com, 31 percent of parents say they have considered taking on a second job, while 26 percent say they will reduce their work hours. Further, roughly one-quarter of respondents are changing jobs to better support their childcare needs, and more than 20 percent say they plan to leave the workforce altogether.

If you’re looking for a starting point to help you determine how much you can expect to pay for child care in your area, Care.com and CostofChildCare.org both provide useful calculators that can crunch the numbers for you based on your preferences and needs.

6 ways to lower the costs of child care

If you’re struggling to meet your child care costs, consider the following options for reducing your financial burden.

• Reach out to your employer: Some employers offer child care assistance as an added benefit for their employees. Revisit your employee benefits package, or contact your HR representative to see if this is an option for you.
• See if you qualify for a tax break: Per the IRS, you may be able to claim the child and dependent care credit if you paid expenses for the care of a qualifying individual to enable you (and your spouse, if filing a joint return) to work or actively look for work. This could help offset your care costs for this year or next.
• Check your flexible-spending account (FSA): FSAs are sometimes a part of an employee’s benefits package, and certain types can be used to offset child care expenses. You or your spouse can fund a dependent care flex spending account (DCFSA or FSA) and use those funds to reimburse your child care costs.
• Ask about a sibling discount: Many child care providers will offer a discount for additional children after your first. Taking all of your little ones to the same daycare or sitter can help you cut down on your commute and could score you a discount.
• Consider using a credit card: If you’re in a pinch, a credit card could help you cover the cost of child care, but this should be done cautiously. Aim to make at least the minimum payment each month, and pay your balance in full if possible. You may also want to look at whether paying your child care costs with a credit card can help you take advantage of your credit card rewards.
• Coordinate a nanny share with other parents: Sharing one care provider may be less costly than hiring a private nanny to watch over your children. Ask friends, family or neighbors if they’re open to splitting the costs of a shared nanny.

The bottom line

Child care costs can put a significant financial strain on a family — especially for today’s parents, who are up against a staggering inflation rate and are still battling the economic aftermath of the pandemic.

The exact amount you can expect to pay will vary greatly depending on your location, the number of children you have, their ages and the kind of care you seek. Still, there are plenty of ways you can reduce the cost of child care and make it manageable for you and your wallet.

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