5 Ways to Make Child Care More Affordable: A Guide for Working Parents

Key Takeaways

• As of 2026, infant child care costs the average U.S. family $17,264 a year.
• Some states offer free or low-cost child care and other resources for parents.
• You may be able to save money by trading child care or joining a nanny share.
• Check to see if your employee benefits can help you reduce your child care expenses.
• NFCC-certified credit counselors can help parents with budgeting and debt management resources.

Having children can bring joy and meaning into your life. But the cost of raising a child is often overwhelming for parents, and it can cause many to go into debt. According to a 2026 survey, infant day care now costs an average of $17,264 per year.

If it feels like there’s no way to manage this expense, we have good news. As a working parent, there may be ways to reduce the high cost of day care and use the savings to do things like pay down your credit card debt. Here are five ways to make child care more affordable.

1. Use a Dependent Care FSA

Do you have a Dependent Care Flexible Spending Account (DCFSA) through your employer? If so, you can use the account to set aside money for child care costs, so you have a way to cover those expenses as they come up. Your contributions to a DCFSA also help reduce your income tax bill. So by some estimates, a DCFSA can reduce your dependent care costs by as much as 30%. 

You can use DCFSAs to pay for a variety of expenses for your dependents under the age of 13, including:

• Child daycare
• Before-school programs
• After-school programs
• Nursery school
• Preschool
• Private babysitting or nannying
• Summer day camps

For the 2026 tax year, you can contribute up to $3,750 to your DCFSA if you’re married filing separately, and $7,500 if you’re single, a head of household or married and filing a joint tax return. To learn more about how a DCFSA can impact your income taxes and tax credits, we highly recommend reaching out to a tax professional.

2. Consider a nanny share

Hiring a full-time nanny costs most families anywhere from $42,000 to $55,000 a year. If that cost seems far out of reach, you might consider joining a nanny share.

With a nanny share, you and one or more other families share the services of a single nanny. You can either have the nanny watch all of the children together in one place or split the nanny’s time between your homes. 

Sharing a nanny with another family won’t necessarily cut your nanny expenses in half. In fact, some nannies may charge more to compensate for the extra work of managing multiple clients and additional children. However, according to Care.com, some parents reduce their child care expenses by as much as two-thirds when they choose a nanny share over a personal nanny.

To find other parents looking for nanny shares in your area, try Care.com, NannyLane.com or look up local parent forums online.

3. Trade child care with friends and family

Do you have family or friends nearby who also have children? If so, consider setting up a schedule where you trade babysitting services. For example, all of the kids might come to your house on Mondays and Tuesdays and go to your sibling’s house on Wednesdays and Thursdays. 

If you take this approach, your kids get a chance to spend time with other children they know while you get to save money on child care.

4. Ask your employer about flexible work options

Since the pandemic, employers have been more open to flexible work schedules and part-time remote arrangements. In 2026, 23% of parents reported having the ability to work from home when needed. 

To find out if you have this option, read your employee handbook to see what flexible work arrangements are available. You can also try approaching your boss with your requested schedule and a plan for how you’ll be on-site for meetings and other important events.

Working from home may not be ideal if you have younger children or your children need more attentive care. However, being home one day a week or more can be a good way to save money if you have children who are older or if they’re only home for part of the day.

5. Find free or low-cost child care through your state

Depending on where you live, you might have access to free child care or subsidized child care, meaning some or all of the cost is covered by the government or another organization.  

Here are some examples of what’s available and where you can find more information:

• Child Care and Development Block Grant (CCDBG): Check with First Five Years Fund to see if your state has CCDBG funding to help with child care costs (for children under 13).
• Free or subsidized kindergarten: Some states provide free or subsidized half-day or full-day kindergarten. To find out what’s available, check with your local school district or visit your state’s Department of Education website.
• New Mexico’s Universal Child Care: As of November 1, 2025, New Mexico offers no-cost child care to qualified residents. Visit NMECECD.org to apply.

How can credit counseling help working parents?

Cutting back on child care expenses is just one way parents might be able to find some relief. If money is tight, it could also be helpful to make some other adjustments to your financial situation.

That’s where credit counseling comes in. When you meet with an NFCC-certified nonprofit credit counseling agency, your credit counselor can offer you the following support:

• Helping you create or improve your budget
• Providing personalized tips for reducing debt
• Enrolling you in a debt management plan (DMP)
• Helping you find additional resources that are available in your area

You don’t have to be facing child care challenges or dealing with a financial emergency to reach out. Regardless of what’s happening with your finances, you can schedule an appointment online or call the NFCC at 800-388-2227.