Can’t get into a licensed daycare centre?
Here are the pros and cons of some alternative options
TORONTO — The odds are stacked against parents hoping to get a licensed childcare space for their kid before they are even born. There was only enough room at regulated centres for 28.7 per cent of all Canadian newborns to five year olds in 2016, according to a recent report by the Childcare Resources and Research Unit, and some of those 636,157 openings were only part time.
And for those who do get a space, the cost of regulated child care in a centre for an infant, the most expensive type of care, can run as much as $22,848 a year, based on 2017 data from the Canadian Centre for Policy Alternatives.
Here are some solutions that may save you more money than others.
Home daycare, licensed or unlicensed
PRO: Often cheaper than centre-based daycare options
CON: If unregulated, there is no oversight for health and safety standards
About 31 per cent of parents in Canada use a home-based daycare, according to a 2011 Statistics Canada report. For some parents, a home-based daycare is more appealing than a more formal environment because of flexibility on drop-off and pickup times.
The cost of home-based care also depends on the child’s age, location and if it is governmentregulated.
At the top end, the median monthly fee for an infant at regulated home daycares in Toronto was $1,020, or $12,240 per year, according to CCPA.
Nanny
PRO: More flexible, potentially cheaper if costs are shared or taking care of multiple children
CON: More expensive for one child than regulated child care at a centre or home
Another option is to hire a nanny to live in or care for their child during the day.
A live-in nanny’s wage ranges between the provincial minimum wage and as much as $20 per hour according to CanadianNanny.ca.
If a nanny works 40 hour weeks, four weeks a month, at $20 per hour, that amounts to $3,200 per month. That’s 70 per cent more than the median cost of regulated infant child care in a Toronto-based centre, the most expensive end of that range. And that $3,200 figure doesn’t include the employers’ employment insurance and CPP contributions, said personal finance expert Rubina Ahmed-Haq. All in, the total annual cost of a nanny could be more than $31,000.
Nanny share
PRO: Cheaper than hiring a nanny on your own
CON: Can be difficult meeting both families’ needs
A more budget-friendly nanny option is a nanny-share arrangement, in which two or more families split the cost of hiring someone to care for their kids. If parents opt for this route, they should only pay slightly more than half the cost of a nanny taking care of one child, said Ahmed-Haq.
Having a relative help
PRO: Likely unpaid, or minimal cost
CON: Less control over child’s care
Some families are able to rely on a grandparent or other relative to take care of their children. However parents can’t dictate the types of activities they engage in, whether that’s going to a drop-in program or watching TV all morning.
Staying home full-time
PRO: No, or reduced, child-care costs
CON: Reduced opportunities or growing future earning power if at home full-time
The option to have one parent stay home with the child or multiple children themselves saves money upfront, but limits future earning potential because it takes them out of the workforce.