Save Money with Tag-Team Parenting

In 2007 the average cost of daycare was $8,150 per year. This number encourages families to try a more unique form of child care called tag-team parenting. Tag-team parenting is method where the parents work opposite shifts so that at least one parent is with the children at all times. This can eliminate the financial strain of paying for daycare.

Families are looking different ways to save money. Economic hardships are being driven by unemployment, the increase in the cost of food and gas, and stagnate wages.

Daycare can cost between $100 and $400 per week. That can be a huge chunk out of a household budget. Depending on your income, one parent may be better off staying at home and not trying to work at all. A person making seven dollars an hour, working forty hours per week will only gross $14,560 per year. It is costing that family more to have the spouse work and pay for daycare than if that parent did not work at all. Tag-team parenting permits the family to have the extra income without the expense of daycare.

Of course, you can use your child care flexible spending account to pay for daycare on a tax free basis. The regulations on the flexible spending account limit your choices of child care providers. Plus, a family can only set aside $5,000 per year for child care. That is not even close to the average daycare cost.

There are advantages to keeping both parents working at least part-time. If both parents are working then hopefully they are both contributing to a 401k plan or similar retirement account. This is less of a burden then if only one parent works when the kids are young. If one parent works, then he is responsible for contributing to the retirement for both parents.

Another good reason for both parents to keep working is insurance. Your family can have two choices for medical insurance and pick a plan that is the most cost effective. Many companies also offer disability insurance. When an employee gets sick or injured then the insurance will pay a percentage of his wage.

Families who use a tag-team parenting and work schedule can save their child care money in order to use it for a variety of things.  With the economy in turmoil saving thousands of dollars a year maybe the only way the some families can keep their heads above water.

For families who are just starting out, tag-team parenting may enable them to save enough money for a down payment on a house. These families may also save enough money for home repairs or renovations.

Some families want to save the money that they would spend on daycare in order to fund their children’s college education. Other families feel, after a year of tag-team parenting, the need for a family vacation.

Tag-team parenting can save families thousands of dollars a year while guaranteeing that the kids are getting the best child care possible.

Sources:

Personal experience

http://www.babycenter.com/0_how-much-youll-spend-on-childcare_1199776.bc

http://childcare.about.com/od/costofchildcare/qt/daycarecost.htm

http://moneyning.com/money-tips/dependent-day-care-flexible-spending-account-fsa/