#54: The Financial Side of School Start Dates: Childcare and Budgeting
By TimeKal AI on August 1st, 2024
How a Birthday Can Impact Your Family's Budget
The date your child starts kindergarten can have a significant and often overlooked financial impact on your family. The core issue is the cost of childcare.
The Financial Equation:
- An Extra Year of Childcare: If your child's birthday falls just after the cut-off date, it means they will spend an additional year in daycare or preschool. For many families, this can mean an extra $10,000 to $20,000 in expenses.
- The "Redshirting" Cost: Voluntarily holding your child back for a year has the same financial effect.
How to Plan for It:
1. Know the Date: Use our School Start Calculator as soon as possible. Knowing which year your child will start school gives you a multi-year window to plan your budget.
2. Start Saving: If you know you'll have an extra year of childcare costs, you can start putting money aside for it earlier.
3. Explore Options: Look into public Pre-K or Transitional Kindergarten (TK) programs, which are often free and can offset the cost of private daycare.
Understanding your child's school start date isn't just about academics; it's a crucial piece of your long-term financial planning.