How much does a nanny share cost?
Considering sharing a caregiver? Be sure to do your homework: Nanny shares and shared care arrangements may be subject to various licensing requirements or prohibited in certain states and jurisdictions. Research local laws and regulations.
You may have heard that sharing a nanny is a great way to save money on child care. It’s true! A nanny share often costs less than paying for a traditional child care center or for a private nanny, but exactly how much money could a nanny share save you?
The cost of an nanny vs. a nanny share
First, consider what you’d pay for a nanny to care for one child:
According to the Care.com 2020 Cost of Care survey, the national average cost of a nanny averaged $29,380 per year. This can, of course, vary based on where you live, what the nanny is hired to do and how much experience they bring to the position.
Next, compare that cost to how much you might spend on a nanny share:
The overall cost of sharing a nanny is about two-thirds what you’d typically pay to have your own. Paying two-thirds the average cost of $29,380 per year means you’d pay about $19,587 per year by choosing a nanny share.
Now here̵7;s how much you could save by choosing a nanny share:
According to the Care.com 2020 Cost of Care survey, the national average cost of a nanny for one infant child averaged $565 per week — and that figure continues to rise. Two-thirds of $565 is about $377, which would add up to about $188 in savings a week, about $816 in savings a month or $9,793 in savings a year, if you chose to share a nanny with another family.
* All nanny rates are for one infant child, according to data from the Care.com 2020 Cost of Care survey.
** All nanny share rates are calculated as two-thirds the cost of the nanny rates shown and are the estimated cost for one family, based on a two-family nanny share.
How do 2 families share the cost of a nanny?
Sharing a nanny usually means the two families involved split their nanny’s hourly fee. Care.com spoke with several families all over the U.S. to learn more about how families share the cost of a nanny. They reported paying between $12 to $26 per hour total — or $6 to $13 per family — for their nanny shares. Rates will vary greatly depending on where you live. For example, the average hourly rate for a shared nanny in San Francisco is $24 to $26 — or $12 to $13 per hour for each family.
Depending on your needs and the needs of your share family, there are many other factors to consider when calculating the overall cost of a nanny share. We’ve outlined a few of the more common ones in the following section.
Factors that contribute to the cost of a nanny share
While every nanny share is unique, here are a few of the more common factors that could contribute to the cost:
- How many children will nanny watch? If a nanny charges $15 per hour for one child and $18 per hour for two, the nanny share families may opt to pay $9 per hour each. However, if either of the children is an infant or has allergies or special needs, this may mean additional work for the nanny, and that parent may consider paying a little more than the other.
- Will you need to buy extra supplies or gear? Consider whether you and the other family will need to buy extra equipment or supplies, such as double strollers or organic food. If you stick to one hosting location, you’ll only need one of everything, which could save you money. One group of parents in a nanny share decided that if one of them bought an item for the group, they’d add it to a shared expense list and then split it up once per fiscal quarter.
- Are you offering your nanny benefits? One Bay Area mom says offering two weeks of paid vacation and paid holidays is standard practice there while a Portland, Oregon mom pays sick leave but does not pay her nanny for time off.
- Does your nanny have extra skills or certifications? A nanny who has extra skills, experience, or safety certifications on her resume typically will charge a little more for her services. (And it̵7;s only fair for her to do so because those are added benefits for your child.) So, if it̵7;s really important for you to have a nanny who speaks Mandarin, or who has a water-safety certification, then consider paying a little more than you normally would.
- Will you have your nanny help around the house? Are you considering having the nanny take on extra tasks outside of her traditional child care job? We̵7;re talking about things like laundry, walking the dog, running errands or cleaning the house. If you̵7;re asking her to do more than just take care of the children, it̵7;s only fair that you pay her more for that work, too.
- Will the nanny drive the children? Some families choose to have their nanny drive the children to and from school, practices and rehearsals. Typically, they̵7;ll decide to reimburse their nanny for the cost of car travel. Each year, the IRS issues a standard mileage reimbursement figure for business. The 2020 rate is 57.5 cents per mile. Here are some ways to reimburse a nanny for gas and mileage.
- Have you thought about nanny taxes? Nanny taxes are a combination of federal and state taxes that families are expected to pay when they pay a nanny — or any household employee — $2,400 or more in a calendar year. Make sure to learn the unique payroll and tax rules to follow when you̵7;re in a nanny share. You can also check out the nanny tax calculator for an easy way to estimate payroll costs, nanny taxes and possible tax breaks.
Once you’ve considered all the factors involved in the overall cost of a nanny share, you’ll be in a great position to come up with a budget and plan that respects what both families are comfortable spending.
Think a nanny share is right for you?
Care.com Nanny Share makes it easy to start connecting with local families.
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