Child Care Options Compared — Daycare, Nanny, Au Pair, and More

Choosing child care is one of the biggest financial and emotional decisions new parents face. The right option depends on your budget, work schedule, children's ages, and what matters most to your family. Each type has real trade-offs — there's no universally best answer.

See the numbers for your situation with the Child Care Cost Calculator.

Side-by-Side Comparison

Feature	Daycare Center	Home Daycare	Full-Time Nanny	Nanny Share	Au Pair
Annual cost (1 child)	$9,000–$20,000	$6,000–$14,000	$35,000–$55,000	$18,000–$28,000	$20,000–$25,000
Adult-to-child ratio	1:3 to 1:10	1:4 to 1:6	1:1	1:2 to 1:4	1:2
Location	Commercial facility	Provider's home	Your home	Your or other's home	Your home
Hours	Fixed (6am–6pm typical)	Somewhat flexible	Very flexible	Flexible	45 hrs/week max
Sick child policy	Must stay home	Varies	Can still work	Varies	Can still work
Licensing required	Yes (all states)	Most states	No	No	J-1 visa program
Multiple children discount	Yes (sibling discount)	Often yes	Marginal increase	Split reduces per-child cost	Same cost regardless

When Each Option Makes Most Sense

Your Situation	Best Fit	Why
Dual-income, standard hours	Daycare center	Reliable, structured, regulated
Variable schedule / shift work	Full-time nanny or home daycare	Flexibility for non-9-to-5
Multiple young children	Nanny or au pair	Per-child cost drops dramatically
Single infant, tight budget	Home daycare	Lower cost, small group
Want cultural exposure	Au pair	Live-in with international exchange
Work from home	Part-time nanny or nanny share	Flexibility without full-time cost

Hidden Costs to Budget For

Care Type	Hidden Costs
Daycare center	Registration fees ($100–$300), late pickup ($1/min), activity fees
Home daycare	Irregular closures, meals may not be included
Nanny	Employer taxes (7.65% FICA + FUTA), workers' comp, paid time off
Nanny share	Coordination headaches, contract complexity
Au pair	Agency fee ($8,000–$10,000), room and board, education stipend ($500)

The nanny "nanny tax" is often overlooked. As a household employer, you're legally required to pay the employer share of Social Security and Medicare taxes (7.65%), plus federal and state unemployment taxes. Failure to comply can result in IRS penalties.

Finding Quality Care

Resource	What It Offers
Child Care Aware (childcareaware.org)	National database of licensed providers
State licensing database	Verify any provider's license and inspection history
Care.com / Sittercity	Nanny and babysitter search
Cultural Care Au Pair / Au Pair in America	Au pair placement agencies
Local Facebook parent groups	Real reviews from neighborhood parents

For state-by-state costs, see Child Care Cost by State. For tax savings, read Child Tax Credit 2026. And for the financial impact of a new baby, check Cost of Having a Baby.