Kim M. was the manager of an art gallery and her husband Tim was a graphic designer for a large corporation.  Their children, ages 4 and 1, were enrolled at a local day care center.  The family routine was a finely choreographed dance.  Tim headed to work early while Kim dropped off the kids.  Mark left by 5 every day to make the 5:30 pick up.  Kim stayed late.  Most nights, family dinner was at 8pm sharp.  Life was humming along well.

The monthly fee at their day care center was $2,400 or $1,200 per child.  Even with their pre-tax dollars, the cost of childcare every month took over one half of Kim’s paycheck.  Tim half-heartedly joked that “paying for daycare is much worse than paying for college.  At least we have a few years to save up for tuition.”    

Last April, Tim lost his job and began to freelance.  Luckily, he has some work from his old company.  Together, Kim and Tim took a serious look at their monthly expenses.  With Tim now working from home, the family decided that they had more flexibility so they could pull their kids from day care and save money on childcare. 

They decided to hire an au pair and cut their childcare costs nearly in half.  Between the agency fee and the monthly stipend, they are now spending about $1400 per month.  Plus, they have a regular Saturday night babysitter.

According to “Breaking the Piggy Bank: Parents and the High Cost of Child Care” a report by the National Association of Child Care Resource and Referral Agencies, childcare fees comprise between 11.7% and 15.2% of median two parent family income.  For single parents, childcare can take up between 35% and 6.9% of income.   

Guess the state with the highest cost of infant care at a childcare center?  Massachusetts, with an average cost of $13,480 or $1,123/month.  In Arkansas, the cost is wildly cheaper, at $4,020 annually or $335 per month.  The cost of a day care center varies tremendously based on geography.

Like childcare centers, the cost of hiring a nanny also varies.  In the NYC metropolitan area, a full-time nanny can run between $750 - $1,000/week.  Remember too, that hiring a nanny will most likely require post-tax dollars. 

The only childcare that is cost-constant across the country is hiring an au pair because the fees are mandated by the State Department.  The agency fee is around $7,300 and the weekly stipend to the au pair is $195.75/week - and both are eligible for the Child and Dependent Care Tax Credit. 

Perhaps most shocking in the report was that – in most parts of the country - monthly childcare expenses for two children were equal to the cost of a family’s mortgage.  In the Northeast and Midwest, childcare expenses are equal to mortgage expenses: an average of $1442 and $1067 (respectively) for childcare and $1430 and $1066 for the mortgage payment. 

As the economic meltdown has affected the careers of parents, so too has it affected the choices they make on childcare.  Scrimping on childcare may not always be the answer, but families should know that they do not always sacrifice the quality of the care when they decide on a less expensive childcare option.

Nancy Felix is the author of the book, Oh My, Au Pair! A Complete Guide to Hiring and Hosting an Au Pair.  An expert host parent, she has had fourteen au pairs. Visit her website at www.nancyfelix.com for more information.
 

We've all heard the stereotype: only well-off families can afford a nanny.  And to host an au pair? Live-in childcare?!  THAT is for the super-rich, right?  WRONG!!

The cost of hosting an au pair is the #1 misconception out there regarding childcare.  No matter how many people I meet, I always find this to be the first question people have.  Unfortunately for many, they allow this misconception to stop them from investigating the program, thus missing out on this flexible, affordable, amazing experience.

The first consideration is outright cost.  At about $7 an hour, hosting an au pair is surprisingly affordable, particularly for in-home care.  Even more importantly, this cost remains the same no matter how many children you have!  Even with just two children, this can be a huge savings.  Let's compare for a minute hosting an au pair versus childcare costs here in Syracuse, NY.  If a family has an infant (0-18 months) and a preschooler (3-4 yrs) in my area, they will pay about $375 a week for a childcare center or $290 a week for licensed in home care.  Clearly, an au pair is the better bargain compared to the childcare center, but maybe not for the licensed home care, right?  Not so fast, there are other factors even more important than money to consider.

Location - Care in YOUR home.  There is no need to wake the kids up and drag them out the door while it's still dark out.  No napping on cots or packing lunches.  Au pairs provide care in your home so your kids can stay in their own environment and follow their own routine.

Flexibility - Your au pair can watch your children for up to 10 hours and day, 45 hours a week.  A few hours in the morning then again afterschool.  All day Monday, Wednesday, Friday and Tuesday afternoons.  Whatever your work schedule, your au pair can accomodate as long as you stay with in the Department of State guidelines.  Overnights, evenings, there is no extra fee for these hours, when childcare centers and licensed home care providers are not available.  Many families also use their au pair for their "date night" sitter, thus saving money in the long run on weekend babysitting costs.

Back-up - You will no longer have to scramble to find a friend or family member to care for a sick baby, nor take the day off of work.  If your third grader has a snow day, he can just stay home with the au pair and younger siblings.  While you do still need to have a back up plan should your au pair get sick, hosting an au pair can actually decrease the amount of sick time you need to take for these unexpected events.

Experience - How do you put a price on your daughter speaking French or overhearing your son tell someone about Carnival in Rio?  Studies have shown that children who are exposed to other languages early on can enjoy a host of benefits, from higher test scores to advanced reading skills. Not to mention the lifelong relationship your family will have with the au pair(s) who provide care.  Many host families take family vacations to visit their former au pairs, or welcome her back to attend their daughter's wedding.  The life lessons and experiences that come with hosting an au pair are truly priceless, and by far the most valuable part of the program.

So, who can afford to host an au pair?  It's clear that anyone searching for childcare should be exploring this option from a cost perspective.  However, with all of the benefits hosting an au pair has to offer, I believe the real question is: Can you afford not to?

In the coming weeks, I hpe to dispel other common misconceptions about the au pair program.  I'd love to hear some that you have heard so I can debunk those myths!