Question 1

What is the cheapest childcare option?

Accepted Answer

Family daycare (home-based care) is typically the cheapest option at $8,000-15,000/year for full-time care, about 20-30% less than center-based care. Nanny shares — where two families split a nanny's salary — cost roughly the same as center care per family but provide a lower child-to-caregiver ratio. The cheapest option overall is a childcare co-op (families trade care hours), but these require significant schedule flexibility and aren't available everywhere.

Question 2

Is a nanny cheaper than daycare?

Accepted Answer

For one child, a nanny is almost always more expensive than daycare — typically $30,000-60,000/year for full-time care vs $10,000-25,000 for center-based daycare. The breakeven point is usually 2-3 children: a nanny's salary stays roughly the same whether watching 1 or 3 kids, while daycare multiplies per child. With 3 children, a nanny often becomes cheaper than center daycare. However, nanny costs include hidden expenses: payroll taxes (7.65%), workers' comp insurance ($500-1,500/year), and paid time off.

Question 3

How much does an au pair cost compared to daycare?

Accepted Answer

An au pair costs roughly $25,000-30,000/year all-in: $200/week stipend ($10,400/year), agency fees ($8,000-10,000/year), room and board (estimated $5,000-8,000/year in food and utilities), and a $500 education requirement. For families with 2+ children, this is often cheaper than either a nanny or two daycare spots. Au pairs provide up to 45 hours/week of childcare and can be more flexible with schedules. The tradeoff: you need a spare bedroom, the au pair lives in your home, and the program requires a 12-month commitment with limited options if the match doesn't work.

Childcare Options: Cost Comparison Calculator

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