- my iParenting
- quick clicks
- preschoolers today articles
- preschoolers today q&a
- children today articles
- children today q&a
- community & groups
- research baby names
- prepare a birth plan
- content channels
- ip channel rss feeds
- read birth stories
- read parenting stories
- recommended books
- e-newsletters
- safety recalls
- ip diaries
- ip store
- mom of the month
- dad of the month
- editor's letter
- letters to the editor
From Our Sponsors
- e-newsletters
- Sign up to receive our free weekly e-newsletters
- award-winning products
The iParenting Media Awards program helps parents find the best products for their families.
Play for It
Budgeting for Preschool By Teri Brown
The word preschool might not strike fear into the hearts of new parents, but that is only because they haven't realized how much it can cost. Old-timers merely nod wisely and hide a little shudder.
Nancy McCormick-Kovacich from San Francisco, Calif., is in the latter category now, but it wasn't always that way. She recalls how shocked she and her husband were when they first discovered the real cost of preschool.
"So many of my neighbors ran their own preschools, or had moms or mother-in-laws that cared for the wee ones, that my husband and I just never thought about the actual cost," says McCormick-Kovacich. "I was thinking it be like $200 a month. Ha!"
Like many other mothers, when McCormick-Kovacich did some research, she realized that some preschools cost almost as much as her full-time job pays.
"Do your research early," says Little. "The sooner you know how much you'll be cashing out for preschool, the earlier you can prepare yourself. And start saving right away! It's not a bad idea to start saving as soon as you learn you are pregnant, or even when you decide that you're going to start trying!"
Little says parents need to analyze their spending habits and find those places where you can cut back. Take the money you save and put it toward preschool expenses. You should also check with the human resource department at your company.
"Some employers offer dependent care spending accounts, which allow employees to set aside a certain amount (usually about $5,000 a year) on a tax deferred basis," says Little. "The employee can then pay for daycare expenses, which in most cases includes preschool, with that money. Essentially, you are paying for preschool with tax-free money, which translates to a large tax savings."
Little also suggests that self-employed parents check with their accountant. Depending on how your business is set up, you may be able to deduct up to $5,000 for daycare expenses, which includes preschool and even kindergarten.