There’s a strong argument that au pairs are becoming one of the best childcare investments for families. The average household cannot handle the full burden of childcare alone, and so it must seek alternative solutions. While nearby family members can sometimes lighten the load, the reality for most families is that they don’t live that close to their extended family. It leaves them dealing with things on their own—and other childcare options seem ridiculously expensive.
Consequently, it’s not particularly surprising to see that more and more families are paying au pairs to live with them for extended periods. Some cite significant cost savings as the reason for this. How does it work, and are au pairs a smart childcare investment for everyone?
The Role of an Au Pair
Some families avoid au pairs because they don’t really know what an au pair does. In simple terms, this is someone who will perform lots of different childcare tasks for you, such as:
- Taking your kids to school and picking them up
- Helping your kids with homework and studies
- Making lunches for your kids to take to school
- Doing the laundry and tidying up during the day
- Occasionally, cooking dinner for the family – if they want to and you allow them
It’s effectively like having a nanny, but the big difference is that an au pair becomes part of your family. They are usually someone between 18 and 26 from a different country who wants to visit your area. Of course, they have all the necessary childcare qualifications and background checks, and they see an au pair role as a great way to explore a new place while immersing themselves in the culture.
The best way to imagine it is that you’ve got an additional grown-up child in your house who’s willing to do a lot of childcare work for you, freeing you up to work full time or do your other important daily tasks. The other key thing to note here is that an au pair doesn’t work for free – and that’s where the concept of this being a good childcare investment comes in.
The True Cost of an Au Pair
Paying for an au pair to look after your children depends on many factors. The main one is the agency you choose to hire the au pair through – each one will have its own set of fees, charges, etc. You’ll also have to pay the au pair a weekly stipend, which is currently a minimum of $195.75, as per the US Department of State’s rules.
In addition to this stipend and the agency fees, you’ll also have to cover the cost of:
- Meals/food
- Transportation
- Education
- Any other agreed-upon expenses
Go Au Pair estimates that this will cost the average family just over $21,500 a year – and this can be paid via payment plans that split it up depending on your budget. Initially, a family can look at this total cost and wonder how on earth it’s a good investment at all. That’s the thing: au pairs aren’t “cheap”, but no form of high-quality childcare is. The idea of this being a good childcare investment comes when you consider how it compares to other childcare costs.
Au Pair vs Daycare vs Nanny
If a family surveys its childcare options, the other two to rival an au pair would be a daycare center or a private nanny. Here’s the big thing to consider about the other two options: they tend to charge based on how many children require care.
Daycare centers charge per child because they must have a minimum number of carers, as required by childcare regulations. The more children you send to a daycare facility, the more staff it’ll need, which substantially increases the center’s costs. In turn, they pass these costs on to families by charging per child—it makes sense, but it makes daycare centers very expensive. If you look at the average cost of daycare, it’s around $17,800 per year, per child. In other words, daycare immediately becomes more expensive than an au pair when you have two kids – and it can get frighteningly costly with each child you add.
Private nannies are even more expensive because they set their own rates and can basically charge what they want. Unlike daycare centers, they don’t automatically increase their fees when you have additional children to care for. Most do, but some nannies will work on a per-family basis. That being said, the most recent Cost of Care Report found that the average nanny costs $870 per week, which translates to over $45,000 per year. In almost every scenario, it is the most expensive type of childcare available.
So, when you break it down, you end up with:
- Au Pair: Approximately $21,500 a year
- Daycare: Approximately $17,800 a year (per child)
- Nanny: Approximately $45,000 a year (may charge extra per child)
When an Au Pair Makes Sense as a Childcare Investment
Based on the figures above, an au pair makes sense in almost every situation where a family has more than one child. The critical thing to consider is whether you have enough space in your home and whether you like the idea of welcoming someone into it. Some families might not be able to do this, in which case an au pair sadly won’t make sense. It’s also less likely to be a good childcare investment for single-child households, as daycare works out cheaper per year on average.
But if you have more than one child, then the cost of daycare explodes, and an au pair suddenly becomes a very worthwhile investment. You could save tens of thousands of dollars a year on childcare – which you could put towards something more beneficial, like a college savings pot for your kids or your retirement fund.
In conclusion, it’s easy to see why people view au pairs as the best childcare investment right now, especially for those with multiple children. Will it be for everyone? No, but if you’re able to welcome someone into your home in exchange for full-time childcare, then it’s hard to beat.
Featured Image Credit: Photo by Pexels; Thanks!
