Providers vary by type and cost. But the most important selection factor is your peace of mind. Make sure your child’s caregiver will provide a safe and appropriate environment.

If you have access to an Employee Assistance Program (EAP), see if it can provide a referral to a local licensed provider.

Here are your daycare choices and the pros and cons of each:

Daycare Centers

One of the most economical types of daycare is a daycare center. These facilities should be licensed and staffed by trained caretakers. They can be part of a chain or individually owned (connected to a church, school, or community center).

Pros:

You are free to drop in and visit any time. The flurry of activity can be stimulating and entertaining to babies and young children. Many daycare facilities also provide educational activities for pre-school age children.

Cons:

Daycare centers are usually closed during holidays. They often have high turnover of workers. High fees for early drop-off or late pick-up can apply (as much as $1 per minute). If your child gets sick, you may need to take a sick day yourself.

Family Day Care

Another economical option is family daycare. These involve caregivers taking children into their own homes. Like a traditional daycare center, they should be licensed and staffed by trained and certified caregivers.

Pros:

Since they are based at a residence, family daycares tend to be conveniently located and inexpensive.

Cons:

Practices are not standardized, so make sure the owner’s ideas about childcare match yours. Elicit views on napping, feeding, playing, and discipline. Check references and background information both for the caregiver and for other family members who live there. Providers also may not offer a pre-school curriculum.

Nanny/Au Pair

Whether live-in or not, both nannies and au pairs care for your child in your own home. You can find qualified candidates through agencies, other moms, your doctor, or schools.

Pros:

Your child gets one-on-one attention in the safety of your home. You don’t have to go through the hassle of getting your baby to an outside location each morning. Housecleaning can be part of the caregiver’s duties.

Cons:

It is expensive. You are now an employer, so if you want to be above-board (a good idea), withhold money for taxes and pay Social Security, unemployment, and whatever else your state laws demand. You may also have to cover worker’s compensation; check to see what your homeowner’s or renter’s insurance policy offers.

Hiring an au pair usually means paying for the person’s flight to your city and providing a rent-free room. You’ll also need to arrange for back-up care in case the person gets sick. The service of nannies or au pairs is unregulated.

Daycare Expenses

Daycare expenses typically account for the largest share of post-baby expenses. One way to save money is to utilize a Flexible Spending Account (FSA) if one is offered through your employer or your spouse’s employer. Utilizing a Flexible Spending Account will allow you to pay for dependent care expenses on a tax-free basis, thereby saving approximately 20 to 30 percent of the cost.

Providers vary by type and cost. But the most important selection factor is your peace of mind. Make sure your child’s caregiver will provide a safe and appropriate environment.

If you have access to an Employee Assistance Program (EAP), see if it can provide a referral to a local licensed provider.

Here are your daycare choices and the pros and cons of each:

Daycare Centers

One of the most economical types of daycare is a daycare center. These facilities should be licensed and staffed by trained caretakers. They can be part of a chain or individually owned (connected to a church, school, or community center).

Pros:

You are free to drop in and visit any time. The flurry of activity can be stimulating and entertaining to babies and young children. Many daycare facilities also provide educational activities for pre-school age children.

Cons:

Daycare centers are usually closed during holidays. They often have high turnover of workers. High fees for early drop-off or late pick-up can apply (as much as $1 per minute). If your child gets sick, you may need to take a sick day yourself.

Family Day Care

Another economical option is family daycare. These involve caregivers taking children into their own homes. Like a traditional daycare center, they should be licensed and staffed by trained and certified caregivers.

Pros:

Since they are based at a residence, family daycares tend to be conveniently located and inexpensive.

Cons:

Practices are not standardized, so make sure the owner’s ideas about childcare match yours. Elicit views on napping, feeding, playing, and discipline. Check references and background information both for the caregiver and for other family members who live there. Providers also may not offer a pre-school curriculum.

Nanny/Au Pair

Whether live-in or not, both nannies and au pairs care for your child in your own home. You can find qualified candidates through agencies, other moms, your doctor, or schools.

Pros:

Your child gets one-on-one attention in the safety of your home. You don’t have to go through the hassle of getting your baby to an outside location each morning. Housecleaning can be part of the caregiver’s duties.

Cons:

It is expensive. You are now an employer, so if you want to be above-board (a good idea), withhold money for taxes and pay Social Security, unemployment, and whatever else your state laws demand. You may also have to cover worker’s compensation; check to see what your homeowner’s or renter’s insurance policy offers.

Hiring an au pair usually means paying for the person’s flight to your city and providing a rent-free room. You’ll also need to arrange for back-up care in case the person gets sick. The service of nannies or au pairs is unregulated.

Daycare Expenses

Daycare expenses typically account for the largest share of post-baby expenses. One way to save money is to utilize a Flexible Spending Account (FSA) if one is offered through your employer or your spouse’s employer. Utilizing a Flexible Spending Account will allow you to pay for dependent care expenses on a tax-free basis, thereby saving approximately 20 to 30 percent of the cost.