In response to rising childcare costs, many people with young children have had to make financial changes, like taking out personal loans to manage some household expenses, finding new childcare solutions and adjusting their budgets in other ways.

Forgoing full-time childcare

In households where all guardians work full-time jobs, families often pay for 30-40 hours of childcare every week, adding up to hundreds of dollars per child. To make room in the budget for other necessities, some households have cut down on hours at traditional childcare providers. In fact, a 2026 survey of 2,000 New York City families revealed that 20% had cut down on childcare coverage or turned to alternatives for care.³

Working fewer hours

Some parents and guardians may cut down on hours whenever possible or even step away from full-time employment to reduce the amount of childcare necessary each week. Unfortunately, working fewer hours creates a different challenge for families' budgets by reducing the household income.

Before reducing your work hours to save money on childcare, you may want to determine if the savings would offset the income loss. If not, it's a good idea to consider whether any alternatives are available to you.

Alternatives to full-time childcare

Many families substitute (or supplement) expensive daycare and preschool options with more affordable alternatives, such as:

• Family and friends: Trusted friends, family members and neighbors may offer several hours of childcare a week at a much lower rate than private providers.

• Nonprofit organizations: Many nonprofits, like the YMCA, offer affordable after-school programs, camps and other options for families in need of extra support.

• Babysitting exchanges: Several parents or guardians with different work schedules may take turns watching each other's children at little or no cost.⁴

You might mix and match childcare options. For example, maybe your child goes to their daycare three days a week, attends a program at the YMCA two afternoons a week and stays with their uncle in the evenings and on Fridays. Finding a routine that works for your budget and your children's needs may take some trial and error.

Reducing other expenses

When lowering childcare costs isn't an option, families may find other ways to make room in the budget. Consider these money-saving tips:

• Shop generic brands: Switching to store brands from certain name-brand grocery items, like canned goods, milk and frozen produce, may reduce your grocery bill by up to 30%.⁵

• Buy secondhand: Before you buy a new shirt, appliance, toy or furniture item, check thrift stores and online marketplaces. Shopping secondhand is particularly helpful for children's clothing, since you'll need to replace your kids' clothes often as they grow.

• Check out your local library: Books aren't the only resources you can access at the library. Many public library systems also offer movies and streaming services, passes to museums, zoos and other local attractions, classes and events for kids.

• Grow a garden: Depending on your climate and living situation, you may be able to grow your own food instead of spending money on expensive produce. Even a small herb garden in the window might make a difference for your budget. Gardening can also be a fun, educational activity for kids of all ages.

Bridging gaps with personal loans

When managed responsibly, a loan may help families juggling childcare costs and other everyday expenses cover unexpected needs. For example, if your child needs an emergency tooth extraction, dental financing may help you pay for the procedure. After your child receives the care they need, you'll pay the loan back in fixed monthly payments that you can factor into your budget calculations. Just make sure you understand the repayment terms and interest rate before committing to a loan.

The childcare balancing act