As a parent, you want the best for your children, which means finding a caregiver who provides the individualized, loving attention they need to grow, learn, and thrive. Childcare can be one of the biggest expenses for families, but it doesn’t have to be.

Cultural Care Au Pair has gathered the top 5 ways to save on childcare, giving you the tools and resources to make an informed decision. Remember—what works for one family might not work for another, so choose what’s right for you

1. Consider alternative forms of childcare

Don’t dismiss any type of childcare too quickly. Keep an open mind and explore all the options available in your area—you might be surprised by what works best for your needs and budget.

For example, in Massachusetts, daycare costs for two children under 4 years old often exceed the cost of hosting an au pair, especially in urban areas.

However, in Mississippi, daycare costs are typically less than half of what they are in Massachusetts, making daycare a more financially competitive option.

2. Take advantage of the Child & Dependent Care Credit

The federal government offers a Child and Dependent Care Credit to families who need daycare or a nanny so that both parents can work. This tax break provides a credit of 20% to 35% on the first $3,000 of childcare costs per child, per year. The percentage of the credit decreases as income rises. To see if you qualify and for more information, visit irs.gov.

3. Use a pre-tax dependent care account

Many employers offer a pre-tax dependent care account as a perk. This account allows you to allocate up to $5,000 of your pre-tax salary for childcare expenses. You can use the money in the account to reimburse your childcare expenses, helping you save on taxes and reduce your overall costs.

Keep in mind: if you’re married and file taxes jointly, the $5,000 cap applies to both you and your spouse. Also, any unused funds at the end of the year must be forfeited, so plan carefully.

4. Check for company discounts

Your Human Resources department might offer subsidized childcare or discounts with local providers. Some companies also provide backup care at nearby daycare centers for parents who find themselves without coverage due to weather, school vacations, or a sick au pair or nanny.

5. Fill in the gaps with willing family members

While full-time childcare from family members isn’t an option for most, you might have a relative or neighbor willing to help for a few hours each week. This can save you money and give your child one-on-one attention from a familiar and loving adult.

Although you may not need to pay a family member the same rate as a daycare or nanny, it’s a good idea to offer at least minimum wage. If they refuse payment, a thoughtful gift—like homemade cookies or a gift certificate—can be a great way to say thank you.