Compare childcare options and costs

For many families, childcare is the biggest monthly cost of all. Start looking early, because good options can have long waiting lists.

The main options

• Childcare centers: licensed, structured, often the most expensive for infants
• Family child care homes: care in a provider's home, often smaller and cheaper, and should be licensed or registered in your state
• Nannies: care in your home, most flexible, usually the most expensive; you may become a household employer with tax duties
• Nanny shares: two families share a nanny and the cost
• Family or friends: lowest cost, but agree on expectations and any payment clearly

Compare fairly

1. List each option's weekly price, hours and what's included (meals, diapers)
2. Add the cost of extra commuting time
3. Ask about holidays, sick days and late fees
4. Check licensing and inspection reports on your state's childcare website

Ways to lower the cost

• A dependent care FSA or the child and dependent care tax credit
• State childcare assistance for eligible families
• Head Start and Early Head Start, which are free for eligible families
• Employer childcare benefits or discounts

General educational information. Costs and rules vary by state, plan and family. Family Penny Saver isn't paid by any brand, store or insurer.