How To Plan For The Rising Cost Of Dependent and Child Care

Having children is a wonderful experience but it immediately places an additional financial burden on a family. The bottom line is children are expensive. You constantly need to replace clothing and shoes as they grow, you have extra mouths to feed, and child care is inevitable for most families as you need to continue working to pay all the bills.

Of course, child care costs. In recent years the cost of child care has been steadily increasing. Unfortunately, this is not the only financial pressure that many new parents face. A large proportion of parents also have parents of their own that are starting to age and need a little help.

The bottom line is that you have the additional costs of child care at the same time as you need to look after parents. It can place a huge financial burden on families, running into thousands of extra dollars per year.

There is no let-up in sight as your children will need your help for years to come, moving through child care to education and potentially university. At the same time, modern technology is increasing the ability of older people to stay alive, potentially meaning the financial burden can last for many years.

You need a way to plan and pay for the cost of dependent and child care.

Speak To A Specialist

While you need to have the funds for child care and to look after dependents, you also need to consider your own future. That means your money is being stretched in four directions, the fourth being simply paying your bills on a daily basis.

It’s time to speak to a specialist in financial planning. They will be able to help you work out what you have, where you can cut costs, and where you are short. At the same time, they will even help you put a little aside for the future. You may be surprised at how much this can help.

Pre-Tax Child Care

You don’t have to pay your child care from your salary after it’s been taxed. If you’re using a registered child care provider and your employer operates the relevant scheme, you can allocate the payment from your wages before tax is deducted. This is a special scheme allowed by the government.

It can make a substantial difference to the actual cost of your child care. You will need to check the details of the plan as some plans allow you to pay a set amount in but if they are not used during the tax year they are lost forever.

Claim Benefits

Many parents that are working don’t think they are entitled to any additional benefits. But, if you’re looking after dependents and children there are a number of benefits you could be entitled to. These can make a substantial difference to your finances.

All you have to do is check the rules and what is offered by your state and see what you can claim. It’s worth taking a look.


If you’re thinking about this it may be that you are planning children or have children but not yet dependents. That means you can get a head start. Talk to your financial planner about investment opportunities. This can be traditional stocks and shares or you may prefer to invest in a property yourself.

There are several options that could be affordable and would allow you to create a fund to help with dependents in the future.

Consider Sharing!

It is increasingly common for two or more families to share the cost of a nanny. In this way, you can hire a dedicated carer for your children and simply create a schedule that works for you and your friends.

This is often a viable approach for people that work shifts.

Change Job

This may not be the preferred choice for many people but it can be a lucrative way to increase your income, especially if there are two of you earning. One of you switches to working nights, allowing you to increase your earnings potential without the need to pay for child care. That can allow you to save a significant sum for the future or dependent costs.

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