Budgeting For Childcare On A Tight Income 

Many families need help to fit childcare into their budgeting requirements when the costs first arise, which is why Missouri Title Loans, Inc. has put together a helpful guide to make it easier.

If the primary caregiver is heading back to work or your circumstances have changed in some other way and you need to start budgeting for childcare, the costs can be prohibitive, so check out our top tips for managing this challenge.

How Childcare Costs Impact Your Financial Goals

The high cost of childcare can put a strain on almost any household no matter the salaries, but even more so for those who struggle from one paycheck to the next. In some situations, it may be more cost-effective to reduce work hours, if you are only working to pay for childcare. Either way, it can significantly impact your budget in more ways than one. If a big chunk of your income is spent on your budget for childcare, there may not be much left for the essentials much less reaching financial goals. When this happens, it may be time to reconsider your budget, as well as your childcare plan and work/life balance.  

How Can You Budget For Childcare Expenses When Money Is Low?

1. Check Out Your Options

Before you go ahead with childcare services, it’s essential to look at all the options in your local area and weigh them up carefully. Some are bound to be cheaper than others, and that doesn’t necessarily mean that they are subpar, and you should dismiss them – they just have different prices. Always do thorough checks on childcare providers to ensure you’re happy with their health and management standards, but don’t feel you must go for the one with the most expensive care expenses per week, month, or year.

children play after budgeting for childcare

2. Consider All Factors

For many parents, communal childcare, such as a daycare center, is the most cost-effective option, but that won’t always be the case. Occasionally, getting somebody in to look after your children may work out cheaper. For example, if you have a very long commute to the childcare provider or their opening hours don’t fit your work schedule, an in-house child care provider might be a better option financially.

It’s also essential to account for things like gas money and time when weighing up care costs and their fee. If one is further away, you’ll spend more on gas daily when picking your kids up.

3. Adjust Your Work Schedule

This won’t work for everyone, but it’s a viable strategy for some. You may be able to adjust your work schedule so that between you and your partner, you can care for your child most of the time – and you’ll either only need part-time daycare (which is cheaper) or no daycare at all. Depending on your career and the field you’re in, this can help save money.

4. Consider A Loan

If one parent is just about to go back to work but hasn’t yet earned a paycheck, it can be difficult to cover those first fees, even if they will be easy to handle once both partners are earning. A loan from us may make this easier, allowing you to return to work and know your child is being cared for.

What Loan Options Are Available For Emergency Daycare?

We offer both title loans and signature installment loans to our clients, and different ones are right for different circumstances. A title loan can be one option if you have a vehicle and a lien-free title that you wish to use for the loan, and you may be able to borrow as much as $15,000, depending on its make, model, and condition.

Consider a signature installment loan if you don't have a vehicle. This kind of loan lets you borrow up to $1,500 based on your proof of income, a credit check, and a few other factors. However, we don’t require perfect credit for this kind of loan or a title loan, so many people are eligible, even if they have a spotty financial history.

It’s easy to find out whether you are eligible for either loan; you need to contact us using our online form, and one of our agents will call you to talk you through the rest of the process. If you can get one of these loans, you will receive the money within two business days, making this a speedy way to access lump sums of cash.

A man holding cash from title loan

FAQs About Budgeting For Childcare

What should I do if I can't afford childcare immediately?

If child care is too expensive to start immediately, you may want to ask your employer what options are available to you, if any. While most companies have maternity leave, they may differ in the length of time allowed, but if you have the option to work from home once your maternity leave has come to an end, that may help to save money or introduce childcare into your budget. If that is not an option and you need to return to work, you may want to seek help from a family member or friend who has some free time to donate.

How can I determine if a loan is right for my childcare expenses?

Deciding what works best for you financially can sometimes be difficult, especially if you are faced with a problem that you cannot solve. As a parent, you are responsible for your children, which means making sure they are safe and taken care of, on the other hand, you also need to provide a roof over their head and food to eat. How do you make the right decision? Do you continue working and figure out day care costs later or when you are hit with a bill you can’t afford or do you stay home and not get paid at all?

This is a problem many parents deal with, but ultimately, it depends on your personal situation. Short-term loans, such as title loans and installment loans, should only be used in emergencies, but if you need immediate assistance or if your unpaid childcare bills will result in the loss of care, then you can certainly use one of these lending options to help with your daycare's budget so you can cover the monthly costs.

Get In Touch For Emergency Childcare Assistance Today!

Childcare costs are a big challenge for many parents operating on a tight budget, and if you’re struggling with this, hopefully, you’ve found these emergency resources from Missouri Title Loans, Inc. applicable. If you’re still finding budgeting a challenge, you may want to consider taking out one of our title loans or installment loans.

These loans can help you cover the early childcare payments while you wait for your budget to balance out. When you start addressing childcare, there are many things to consider, but the cost is significant for many parents, and it’s challenging to find the money if only one partner is working.

By giving yourself access to a lump sum in advance, you might find it easier to set up a system so that you can go to work and earn some money. You can learn more about our loan options and start the process of getting one by filling out our online form now!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Emma Frost

Emma Frost is a lifestyle and finance blogger with a talent for communication and a passion for financial literacy. She uses her writing talents to explore topics that help her readers gain financial stability and growth.