#65 From Diapers to Summer Camp: Managing Childcare Expenses at Every Stage
As financial advisors, Amanda Vaught and Emily Agosto often see families focus only on the sticker price of daycare or a nanny—but there’s so much more to consider.
Here are 3 key takeaways from our latest conversation:
🔹 Hidden Lifetime Costs: It’s not just about comparing your salary to daycare expenses. Stepping out of the workforce—even for a few years—can cost nearly $295,000 over a lifetime when you account for missed promotions, lost compounding retirement savings, and Social Security benefits.
🔹 Tax Credits & Rules Matter: The Child Tax Credit and Child & Dependent Care Credit can help, but come with limitations. The dependent care FSA through your employer is another great resource to explore!
🔹 The Ongoing Juggle: Daycare isn’t the end of child care expenses. After-school programs and especially summer camps are significant costs. Planning ahead (sometimes 6+ months!) can lead to big savings—look for early-bird or sibling discounts.
We know these are tough calculations! If you’re wrestling with the numbers—or just want to chat through your situation—reach out to us at info@connectingthedollars.com. And don’t forget to connect and follow Propel Financial Advisors for more practical money conversations.