eyes on
Childcare Costs
Childcare is expensive. So expensive that it’s keeping some parents — many of them mothers — out of the workforce. According to one study, it costs the average family $9,051 annually. And census data shows that nearly 4.5 million people were unemployed in January of 2023 because they were caring for a child who was not in daycare or school. Now, pandemic-era funding that’s helped keep many childcare centers afloat is set to end in September, which some experts say could drive costs up even more. So, what’s a working parent to do?
Your move:
Review your benefits package. According to one survey, nearly 6% of employers offer childcare in or near the office, so it’s worth checking with your HR team to see if your 9-to-5 benefits include care for your little one.
Enroll in a DCFSA. A dependent care flexible spending account is a tax-advantaged account that your employer may offer. If you have one, you can save up to $5,000 a year pre-tax and spend it on eligible childcare expenses. But if you don’t use the funds by the end of the year, you lose them.
Consider Head Start. Head Start is a federally-funded program that provides childcare to low-income families from birth to age five. Check with your local Head Start center to find out if your family is eligible.
for the group chat
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Highs and Lows
Good news: Stocks are on the rise today. The TLDR: Investors are feeling good about the Fed potentially hitting pause on interest rate hikes at its meeting on Wednesday. Now all eyes are on tomorrow’s May inflation report, which could tell the Fed whether or not its previous rate hikes are working.
5-minute money tip
Get ready for student loan repayment.
Calling all borrowers: Student loan payments could resume as soon as late August. To get ready, calculate your monthly payment at the Department of Education website. Then, reach out to your loan servicer ASAP for help enrolling in an income-driven repayment plan or finding other options like deferment or forbearance. Also, check with your employer to see if they offer any form of student loan repayment assistance (you might be surprised). PS: Here are more ways to prep for repayment.
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