With the annual cost of child care ranging anywhere from $4,600 to $15,000 a year, child care can be one of the largest expenses that parents face today. However, many expectant parents don’t have a solid child care plan set in place. It is helpful to create a solid child care plan by following these four steps:
Make your decision early about what type of care you want your child to receive
There are different options to choose from, including a family child care home, a day care center, or hiring a nanny. Research how much each type of child care in your area would cost, so that you know just how much you will need to spend, based on your preferred form of child care.
Calculate how much income you will lose by being out of work
If a parent that was once making money at work is now staying home to take care of a new baby, it is important to calculate just how much income will be missing during this time. Expectant parents should attempt to save this money ahead of time in preparation, and this should all be factored in when it comes to financial planning for child care.
Weigh potential income against the costs of child care
Comparing how much money you will be losing by staying home to take care of your child versus how much you will be spending by paying for child care, can be extremely helpful during the planning process. Depending on how much the potential stay-at-home parent makes at his or her job and the cost of local child care, it may or may not make sense to quit your job to be a stay-at-home parent.
Contact Peachtree Financial Solutions today to learn more about how a settlement funding transaction can help
If you are the recipient of annuity or structured settlement payments, and you need money now, you can sell some or all of your future payments to us and we will provide you with a large lump sum cash payout. This money can be used to take care of your expenses and bills, including credit card bills, medical expenses, and child care costs. Additionally, if you are planning on staying at home with your child, as opposed to paying for child care, the money you receive from Peachtree Financial Solutions can be used to fill in any income loss you would experience from not working.
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.