Budgeting 101 Daycare Budget Template: Tips for Budgeting Child Care Read the Article Open Share Drawer Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on Tumblr (Opens in new window)Click to share on Pinterest (Opens in new window)Click to share on LinkedIn (Opens in new window) Written by Mint Published Aug 26, 2020 - [Updated Jun 1, 2022] 3 min read Advertising Disclosure The views expressed on this blog are those of the bloggers, and not necessarily those of Intuit. Third-party blogger may have received compensation for their time and services. Click here to read full disclosure on third-party bloggers. This blog does not provide legal, financial, accounting or tax advice. The content on this blog is "as is" and carries no warranties. Intuit does not warrant or guarantee the accuracy, reliability, and completeness of the content on this blog. After 20 days, comments are closed on posts. Intuit may, but has no obligation to, monitor comments. Comments that include profanity or abusive language will not be posted. Click here to read full Terms of Service. Click below for the free budget template that matches your lifestyle Free Budget Template Daycare Budget Template Student Budget Template Home Budget Template Simple Budget Template Monthly Budget Template Sample Budget Template College Budget Template With a shaky economy and the cost of child care on the rise, parents may find themselves with an overstretched dollar. Whether your child attends a daycare center, or you’ve opted for in-home care instead, the cost can be overwhelming for many families. So what’s a parent to do? The following steps can help you streamline your finances and help ensure there’s enough money for all areas of your life, including daycare: 1. Consider Financial Aid Check to see if your employer offers a flexible spending account (FSA) program. This type of plan can help parents set some pre-taxed money aside for daycare costs. Although there is a cap to how much of this money you can contribute to an FSA, whatever money you do accumulate can be used for all sorts of child care expenses, including daycare centers, babysitters, live-at-home nannies, and even camp programs. Certain employers will offer dependent care programs, which is essentially the same idea as an FSA. Taking advantage of programs such as these can help you effectively save for daycare costs. 2. Take Advantage of Tax Credits There are plenty of expenses that are tax-deductible, including daycare costs. The tax credit for dependents can allow you to claim up to 35% of your daycare costs up to a maximum of $3,000 (for one qualifying person) or at $6,000 (for two or more qualifying persons). These tax credits are subject to income eligibility requirements, and are paid using after-tax income. It’s important to note that if you are already tapping into an FSA program with your employer, you cannot claim these same expenditures for both an FSA and for the child care tax credit. You can take advantage of both programs, but you’ll have to subtract how much you’ve contributed to your FSA account from the costs you used to calculate your child care tax credit. A clear budgeting plan can help you comfortably cover the expense of daycare 3. Deduct a Percentage of Your Monthly Pay-check Consider having a portion of your pay-check automatically deducted and deposited straight into a savings account dedicated specifically to daycare expenses. Depending on the amount you make, and the cost of daycare for your child(ren), this number can vary. For instance, if daycare costs you $600 per month, and you take home $3,000 monthly, have 20% of your monthly pay deducted and put aside for child care costs. Having this money deducted automatically will help you resist the urge to use the cash for other things that may not necessarily be as high a priority as child care expenses. Click here to download the XLS file daycare budget template.xls. 4. Exchange Your Services for Child Care Some daycare centers may be open to you bartering your services in order to save on the overall cost of child care. For instance, if you’re a professional accountant, you may offer the daycare center a complimentary review of their tax situation or financial health. If you’re a marketing manager, you may offer a free newspaper or website ad for the daycare center in exchange for discounted child care services. Budgeting for daycare and other expenses can be a challenge if you don’t have a tool to help you organize and track your expenses. Luckily, Mint.com makes daycare budget a cinch. This online service provides a number of budgeting tools and tips to help you keep your finances in order. Visit Mint.com today and take advantage of their FREE daycare budget template to help make budgeting a breeze! Click here to try Mint for free. Previous Post How Mint.com Can Help You Budget For Your New Small… Next Post Tips on How to Save for Vacation with a Vacation… Written by Mint Mint is passionate about helping you to achieve financial goals through education and with powerful tools, personalized insights, and much more. More from Mint Browse Related Articles Mint App News Intuit Credit Karma welcomes all Minters! Retirement 101 5 Things the SECURE 2.0 Act changes about retirement Home Buying 101 What Are Homeowners Association (HOA) Fees and What Do … Financial Planning What Are Tax Deductions and Credits? 20 Ways To Save on… Financial Planning What Is Income Tax and How Is It Calculated? Investing 101 The 15 Best Investments for 2023 Investing 101 How To Buy Stocks: A Beginner’s Guide Investing 101 What Is Real Estate Wholesaling? Life What Is A Brushing Scam? 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