Freedom Debt Relief Reviews Costs of Child Care
Most parents and aspiring parents know they will have to save a lot of money to pay for their child’s education. What’s not always considered is the expense associated with childcare. According to a report by care.com, one in three families spend 20% or more of their income on childcare. Loving parents want their children to be in the best hands, but expenses can mount. Freedom Debt Relief reviews ways to save on child care while still ensuring your children are safe and happy.
Childcare costs continue to rise. Some families see one income totally lost to child care. In these cases, it can be beneficial for one parent to stay at home. But you may not necessarily have to alter your career because of childcare costs. Freedom Debt Relief reviews other options.
Freedom Debt Relief Reviews: Flexible Spending Accounts
While FSA’s will not lower child care expenses, they can save you money by lowering your taxes. Tax law allows married couples who file jointly to put $5,000 of pre-tax income in an FSA each year. The money in the account can be used to pay for dependent care. This includes daycares, summer camps and babysitters. Be mindful that any unspent money at the end of the year is lost.
Some people spend more than $5000 and some employers don’t offer FSAs for childcare. Those in either situation can use the dependent care tax credit. The IRS grants parents with dependent children 12 or younger up to a 35% credit on childcare costs up to $3000 for one child and up to $6000 for two or more.
Freedom Debt Relief reviews using financial aid. Low-income families can take advantage of financial assistance from the U.S Department of Health and Human Services Office of Child Care. Parents who earn less than 200 percent of the poverty line are eligible for subsidies. The Health and Human Services also have a program called Child Care Aware which connects parents with state child care resources and referral agencies.
Neighbors and relatives can be assets in bringing down childcare costs. Ask others to watch your children and return the favor. Consider setting up a neighborhood cooperative in which different families take turns watching the children. Use any skills you have or services you offer to barter deals for childcare with relatives and neighbors. Talk with your employer to see if you can telecommute or change your hours around.
Freedom Debt Relief reviews ways to be better your life. We all want the very best for our children. Know your options to give your children great care while saving money.