# Childcare Options and Costs: Daycare, Nanny, Nanny Share or Family

> Pros, cons and costs of centers, home daycare, nannies, au pairs and relatives, plus subsidies and tax help.

Stage: family - Topic: For parents - Page: https://www.askcladle.com/guides/parents/childcare-options-and-costs

Grounded in: AAP HealthyChildren guidance on choosing child care, the national health and safety standards for child care (Caring for Our Children), US Administration for Children and Families information on child care subsidies, Head Start and Early Head Start, and IRS guidance on dependent care tax benefits and household employers. Summarized in Cradle's own words; none of these sources endorse Cradle. General information, not tax or legal advice.

Reviewed: 2026-11

## TLDR

- Centers, home daycares, nannies, nanny shares and relatives each trade off cost, reliability and flexibility.
- Infant care costs the most and spots have long waitlists, so many families start looking in pregnancy.
- Check state subsidies, Early Head Start and Head Start, public pre-K, the dependent care tax credit or a Dependent Care FSA.

## The main options

- **Childcare center.** Licensed, staffed in classrooms by age. Pros: reliable hours, backup staff,
  inspections, social time. Cons: highest infant cost in many areas, more colds the first year,
  closed when your child is sick.
- **Family childcare home.** A licensed provider caring for a small mixed-age group in their home.
  Often cheaper and more flexible, with one steady caregiver. If the provider is sick or on vacation,
  you need backup.
- **Nanny.** One caregiver in your home on your schedule. The most expensive option for one child,
  more affordable for two or three. You become an employer (see below).
- **Nanny share.** Two families split one nanny. Lower cost per family; you'll need clear agreements
  on hours, sick days, pay and rules.
- **Au pair.** A young adult from abroad who lives with you and provides limited hours of care under a
  US exchange program. You need a spare room and comfort with a live-in helper.
- **Relatives or friends.** Often warm and affordable, sometimes free. Talk openly about pay,
  expectations and safety rules; see the grandparents and extended family guide.
- **Shift-splitting.** Parents or co-parents working different hours to cover care. It saves money but
  is hard on sleep and time together.

## What it costs

- Childcare is one of the biggest expenses for families with young children. Infant care often costs
  more than toddler or preschool care because ratios are lower.
- A federal benchmark considers childcare affordable at about 7% of household income. Most families
  pay far more.
- Get real quotes in your area early. Infant spots can have waitlists of many months, so many families
  start looking in pregnancy.

## Help with the cost (US, general)

- **State childcare subsidies** for families under income limits. Apply through your state's child
  care agency or dial 211.
- **Early Head Start** (pregnancy to age 3) and **Head Start** (3-5) are free for eligible families.
  Many states and cities offer free or low-cost **public pre-K** for 4-year-olds, and some for 3s.
- **Tax help:** the Child and Dependent Care Credit, and a Dependent Care FSA through your employer
  for paying care with pre-tax money. You can't use both on the same dollars; check the current limits.
- **Work benefits:** some employers offer backup care, subsidies or on-site centers. Military families
  have their own childcare programs (see the military families guide).

## If you hire a nanny

- Pay above a yearly IRS threshold makes you a household employer: you withhold and pay certain taxes
  and give a W-2. Payroll services or an accountant can handle it.
- Write a work agreement covering hours, pay, overtime, paid time off, sick days, duties and house rules.
- Check references and run a background check. Ask about infant CPR and first aid training.
- Share your safety rules in writing: safe sleep, car seats, no screens or phones while supervising
  water, and medicines. The caregiver handoff sheet helps.

## When to check in

- If you can't find or afford care, your state's child care resource and referral agency can list
  openings and subsidy programs. 211 can connect you.
- See the choosing a daycare guide for visit questions and red flags, and the separation anxiety guide
  for easing the start.