Child Care Options

After the birth of a child, two-income families face a big decision: should one parent stay home to care for the child or do both parents need to work? If you decide both parents need to work, child care becomes a critical issue.

Of course, single parents rarely have a choice between working or not. This makes child care even more important in these households.

Read on to explore your child care options.

One Income or Two?

Outside Child Care

One Income or Two?
In two-parent households, deciding whether it is best for both parents to return to work or for one to stay at home with the child is very personal. You and your spouse will need to make your own decision, based on your income, expenses, values, and career plans.

Some couples manage a compromise as each parent works a different shift. While one parent works during the day, the other logs an evening or night shift. This arrangement can be tough on a relationship, so consider it carefully. Still, this solution allows one parent to be at home with the child most of the time, which can save a lot of money.

The work/stay-at-home decision also may change as children grow up. For example, some stay-at-home parents return to work once their children are in school most of the day, although that situation still may require before-school and/or after-school care.

Here are some pros and cons of staying home to care for a child.

Pros

• increased time with your child during the important early years
• more familiarity with your child's daily routines and activities
• reduced out-of-home child care costs
• consistent training in your family's unique values and beliefs

Cons

• potential loss of Social Security credits and retirement benefits for the nonworking spouse
• lower family income and possibly fewer employee benefits
• decrease in skills and career opportunities while out of the workforce
• less group interaction for the child

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Outside Child Care
If you decide you need day care for your child, there are a number of options to consider, each with different costs, advantages, and disadvantages. Choices include care by a family member, care in the home of a caregiver, care in your home, cooperative care, center-based care, and work-site care.

One potential downside is that the odds are greater that your child will be sick more often simply because he or she will be exposed to more kids who may be ill.

Care by a family member
You may feel more secure emotionally having your child at home with an adult family member than in a day care facility. In terms of costs, this may be the best care you can find and it can be very reasonable. Perhaps one of your parents, or a brother or sister, could agree to watch your child while you work. You can negotiate payment with them, or trade other services. The positive is that your child is with a trusted family member. The negative is that if your relative is sick, you'll probably have to take a sick day from work to stay home with your child.

Care in the home of a caregiver
In the home of a caregiver, your child usually has the opportunity to interact and play with other children. Typically, these settings are more home like than a day care center and depending on state laws, the caregiver may or may not be licensed.

Care in your home
Your family may benefit from having a close relationship with a person committed to caring for your child in your home. Although this care is usually the most convenient, it also tends to be the most expensive option. Plus, you’ll have tax-related issues to consider because the caregiver is considered an employee. For more information about this, see the Social Security Administration’s Web site.

Cooperative care
Just like you, many parents are looking for high-quality child care. For a solution, consider forming a child-care co-op based on common needs or interests. For instance, you might be able to start a co-op in partnership with a preschool, religious group, school district, union, civic group, or other organization. But if you start this type of arrangement from scratch, be warned that it will take a lot of work to get it going and keep it running.

Center based care
In a day care center, your child most likely will have access to a variety of learning programs and resources. These centers, which are usually licensed by the state, may be found in a number of places, such as schools, religious institutions, private child care businesses, and social service agencies. Most have strict rules regarding care hours, so if your work schedule varies, you might need to consider a more flexible arrangement. Centers also can experience frequent staff turnover, and your child may be upset if his or her favorite caregiver is suddenly gone.

Work-site care
For employees with small children, child care offered at the workplace can be a wonderful fringe benefit. Employers may help pay the cost of the care, and working parents have the chance to check on their children occasionally during the day. Parents also can act quickly if their child becomes ill. On the downside, it may be emotionally difficult to just "make a quick check" on a child, and then clear your head and get back to work.

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