A new school year can bring a welcome return to routine, but it can also bring a fresh round of expenses. Between school supplies, new clothes, extracurricular activities, lunches and after-school care – September can put added pressure on a family’s budget.

For families who rely on childcare, those costs can represent a large part of their budget. Child Care Aware of America reported that the national average annual price of childcare reached $13,184 in 2025. That represented about 10% of the median income for married couples with children and 33% for single-parent households.

The start of a new school year is a good opportunity to take a closer look at what you’re paying for care and where you may be able to save.

1. Reevaluate What Care You Actually Need

Your childcare needs during the school year may look very different from your summer schedule.

Take a fresh look at your family’s weekly routine. Do you still need full-day care, or could you switch to a before or after-school program? Are there certain days when a parent or caregiver has more flexibility? Can work schedules be adjusted so you need fewer hours of paid care?

Even reducing paid care by a few hours each week can add up over the course of a school year. Be sure you understand your provider’s policy before changing your schedule. Some childcare centers charge a flat weekly rate regardless of how many hours your child attends.

2. Compare Total Cost, Not Just the Weekly Rate

Childcare costs can vary considerably depending on where you live, your child’s age and the type of care you choose. Center-based care, family childcare homes, nannies, babysitters and school programs may all have different pricing structures. A provider with a slightly higher base rate could ultimately cost less if more services are included.

When comparing your options, look beyond the advertised weekly or monthly rate. Ask about:

• Registration or enrollment fees
• Charges for early drop-off or late pickup
• Meals and snacks
• Transportation
• School closure or holiday coverage
• Activity or supply fees
• Sibling discounts
• Whether you still pay when your child is absent

3. Check Your Employee Benefits

Your employer may offer benefits that can help make childcare more affordable.

One option to investigate is a Dependent Care Flexible Spending Account, or FSA. These accounts allow eligible employees to set aside pre-tax income for certain dependent care expenses.

For 2026, the annual dependent care FSA limit increased to $7,500 for eligible households, or $3,750 for married individuals filing separately. Because you generally contribute the money before federal income taxes are calculated, using an FSA may reduce the overall cost of eligible care. The IRS has more details on how dependent care FSAs may work alongside other tax benefits.

Some employers also offer discounted rates with local childcare providers or flexible scheduling options.

4. See Whether You Qualify for a Tax Credit

Depending on your circumstances, you may also qualify for the Federal Child and Dependent Care Credit.

The credit may be available to individuals who pay for care for a qualifying child or dependent so they can work or actively look for work. For 2026, eligible expenses generally remain capped at $3,000 for one qualifying individual or $6,000 for two or more. The actual value of your credit will depend on several factors, including your income and eligible expenses.

Tax rules can be complicated, particularly if you also contribute to a dependent care FSA. Consider speaking with a qualified tax professional about which benefits you may be eligible to use and how they work together.

5. Research State and Local Assistance

Families may also qualify for programs that help cover a portion of childcare expenses. New Jersey’s Child Care Assistance Program may be able to help eligible families pay for childcare while parents work, attend school or participate in approved training programs. Eligibility and benefits depend on factors such as household income and family circumstances.

6. Create a Backup Care Plan Before You Need It

A school closing, sick caregiver or unexpected schedule change can quickly turn into an expensive last-minute scramble.

Before the school year gets into full swing, make a list of your backup options. This could include trusted relatives, friends, neighbors, babysitters, or school programs. Knowing whom you can call and when they are available can help you avoid paying premium rates for last-minute care.

7. Make Child Care Part of Your Monthly Budget

Childcare is often one of a household’s largest expenses, so it deserves its own place in your monthly budget.

Start with what you realistically expect to spend each month, then include additional costs that may pop up during the school year, such as school vacations, summer break, registration fees and occasional babysitting. First Financial’s Home Budget Calculator can help you map out where childcare fits within your larger monthly spending plan.

Next, review the rest of your spending. Look for expenses you can temporarily reduce, cancel or renegotiate rather than automatically putting the difference on a credit card. Small adjustments to dining out, subscriptions, entertainment or other flexible spending categories can help create additional breathing room.

Remember to protect your longer-term financial goals when possible. Cutting out deposits toward your emergency savings may ease this month’s expenses, but leave you more vulnerable when the next unexpected cost arrives.

Give Your Family’s Budget a Back-to-School Checkup

Childcare is a significant expense for many families. The goal isn’t necessarily to find the cheapest option. It’s to find safe, reliable care that works for your family while making the most of the resources available.

As the new school year begins, take some time to review your care schedule, employer benefits, assistance programs and your monthly budget. A few changes today, could make managing care costs a little easier throughout the school year.

For more budgeting tips, visit our First Scoop Blog.