Did you know? The average Canadian parents with a child under 3 spent $562 a month to keep their child in full-time childcare in 2023.
If you’ve got more than one child that needs childcare, or you live in a more expensive part of the country that number may be even higher.
When you break down these numbers, it’s no surprise that 90% of parents report losing sleep over the burden of caring, which includes the financial cost of care.
And that’s if you can even find childcare at all. According to Statistics Canada, 49% of parents say it’s challenging. That’s up from 36% in 2019.
The good news is that there may be alternative ways to tackle the cost of full-time childcare for young children.
Here are a few you might consider as you decide what’s right for your family.
Find a daycare that’s part of the government’s “$10 a day” program
If you’re looking to save money on daycare itself, you might want to look into the government’s “$10 a day program.” By 2026, the federal government is aiming to bring childcare fees down to $10 a day on average throughout the country. In general, any Canadian family with a child under 6 can qualify for this program, although eligibility can vary depending your your province.
According to the government of Canada, the program is already saving families significant amounts of money on childcare costs. In Ontario, for example, it has saved families in licensed daycare up to $8,300 per year, while in Alberta it has saved families up to $13,700.
That said: Not all daycare centres are participating in this program, which could mean that you might find it hard to secure a spot in a centre that is offering $10 a day daycare.
Ask for help from grandparents or other trusted relatives
If you or your partner have your parents or other relatives living close by and they’re willing and able to take on the responsibility, they can be a great – and potentially free – option for childcare.
It doesn’t mean your parents or other relatives have to become full-time childcarers again. It could be only 1 day a week, a few hours after school each day before you get home from work, or the kids staying overnight at their place while you’re on a night shift.
However they’re willing to help, grandparents or other trusted relatives can be a fantastic part of a creative childcare plan that costs nothing. (You might consider re-imbursing the cost of things like gas, snacks and baby supplies.) Plus, it’s a great way to help build a strong relationship between your kids and their grandparents or other trusted people in their lives.
Here’s how it could work: Jenny and Fatima have 1 year old twins. They’re lucky to have both sets of grandparents living nearby, who are more than happy to look after their grandkids a few days a week. Jenny’s parents look after them on a Monday and Tuesday, and then Fatima’s parents have them on Wednesday and Thursday. This means Jenny and Fatima only have to put their twins in daycare 1 day a week, significantly reducing their childcare costs.
Delay your return to work
The younger the child, the more expensive the childcare. To help avoid the especially expensive infant rates, you might consider delaying your own return to work until they’re a bit older, and childcare is relatively cheaper.
For example: In Toronto, Ontario the average cost to send an infant (up to 18 months) to daycare is $1,758 a month. If you’re able to stay home with them until they’re 2, that costs drops over $200 a month.
It can also be easier to find part-time daycare options when kids are a bit older.
Here's how this could work: Ben and Keisha have a 6- month- old son. Keisha earns more, so she’s gone back to work full-time while Ben is currently on paternity leave. They calculated that putting their son in daycare full-time now will cost them $1,700 a month. Since Ben earns about $1,600 a month, they’ve decided that it actually makes more financial sense for them to have him stay at home until their son turns 2. Then, Ben will go back to work part-time while their son spends 3 days a week in daycare at a lower rate.
If you are on parental leave, extended government employment insurance benefits are paid out for a maximum of 69 weeks. (1 parent cannot receive more than 61 weeks of benefits.) This means that you might be debating when you should return to work, which impacts when you’ll need childcare.
Another option to explore is whether your workplace offers any top-ups to these government benefits. For instance, some companies may top up your salary to a certain point for a specific number of weeks while you’re on parental leave. If they do, this could ease the financial burden of staying home a little longer.
Share a nanny with other families
This can be a great solution for anyone who is looking for more flexible childcare options. While employing a nanny yourself might be too expensive, splitting the cost with 1 or 2 other families can make it much more affordable.
The average hourly wage for a live-out nanny in Canada is $17. If they’re working full-time for 30 hours a week, that adds up to about $26,500 a year.
That’s more than daycare – unless you’re splitting that cost with others. Maybe you alternate days with another family (great if you’re working part-time) or your child joins a few other children from another family in their care every day.
Here’s how it could work: Nina is a single parent of a 10-month-old who wants to work 2 days a week but is struggling to find a daycare that will accommodate that. Her friends Brandon and Wing have had a nanny for their 2 kids 5 days a week. Now that their kids are spending 2 days in preschool, however, they don’t need their nanny full-time. This means that Nina can “split” her services, paying for her 2 days a week while Brandon and Wing pay for the other 3.
Find other families to share the load
Consider pooling your time and resources with other families to form an informal childcare co-operative.
Whether they’re friends, neighbours or people you meet at baby classes or parenting groups online, you might find other people looking for creative ways to manage their childcare costs who are willing to work together with you to care for your children.
For example, 1 parent might be able to watch the kids on Mondays and Wednesdays, while another can tackle Tuesdays and Thursdays. You might be able to do Fridays, and so forth.
You could also split the cost of food, activities and supplies so that no one is out of pocket for the days they’re caring for the kids.
Here’s how it could work: Marco met Sally and Jameela at baby swimming lessons. They began talking about how hard it was to find an affordable daycare. After getting to know each other more, they decided that it could work if they all split the childcare responsibilities instead. Marco doesn’t work on Mondays, so he takes the kids on that day. Jameela and Sally are both back to work part-time so they take the remaining days in turn.
Look for discounts or subsidies
Some employers offer discounts on childcare at certain providers, or may even have their own subsidized facility for their employees. See what’s available in your company.
Other ways to financially prepare for having a child
Childcare is just one of many things parents have to consider when it comes to the financial aspect of having children. Before you start or grow your family, you may also want to start building your savings and paying down debts, which can also help provide a cushion for finding childcare. You could also explorelink into life insurance to protect your family in case something happens to you. You may also want to write or update your will, and name a legal guardian for you child, too.