Chicago Childcare Costs: Breakdown of What it Costs to Hire a Nanny vs. Daycare in Chicago
I would like to preface this by saying, this post is intended to loosely guide families on the estimated costs of different forms of childcare, specifically in Chicago and the surrounding suburbs. The goal is to help navigate a budget for childcare and I promise you, it is not meant to scare.
How are us parents supposed to know what a nanny or daycare costs besides asking random friends/neighbors… which is like comparing apples to oranges since everyone’s schedule needs/situations/locations may vary significantly. Or better yet, Googling it?? It’s a tricky, nerve-wracking topic but without further ado, let’s discuss.
We’ll start with an example to get our wheels turning. Say you’ve purchased your first long-term home which leads you to the task of deciding on furnishings. You have a wide array of choices in how/where to spend your money, keeping in mind what areas are more cosmetic/aesthetic versus what pieces of furniture you plan to invest in and intend to hold on to for years to come. You can DIY, you can buy duvet covers, throw pillows and curtains from IKEA, or you can go the custom route. You might feel that hiring an interior designer is going to give you the best foundation for the theme/style in your home and therefore it’s worth the investment. You can get creative and patch things together (at the risk that you’ll have to replace lower-quality items more frequently), or you can spend more and end up curating the most luxurious space. Certainly, everyone will do what suits them best.
You might see where I’m going with this and how it essentially relates to the array of childcare options. The reality is, no two (options) are the exact same. Thus, they should not cost the same.
This might already feel unsettling, but firstly, it is perfectly okay to go the in-home daycare route, or to ask family members to step in, and it is encouraged to make choices within your means. Alternatively, if you are envisioning allocating funds towards specialty childcare, what does a newborn care specialist or a professional, full-time nanny cost?
Daycares in Chicago:
Averages $400-$900 per week. This translates to $1,600-$3,600 per month, and roughly $20,000-$43,000 per year.
Advantages: Less expensive than individual/private care, such as a professional nanny. Exposure to different people, teachers, activities, new environments.
Disadvantages: Limitations on open time frames, generally between 7/8:00am until 5/6:00pm. Accrual of (steep) late fees past pick-up time. Heightened exposure to viruses/illnesses.
Full-Time Nanny in Chicago (35+ hours/week):
Averages $1,000-$1650 per week (gross). This translates to $4,000-$6,400 per month, and roughly $50,000-80,000+ per year.
Agency fees (in order to streamline your search, to receive guidance on how to employ an in-home employee properly and legally, and be able to access top-tier candidates): $5,000-12,000+ as a one-time fee. Some agency fees are a flat rate, and others are a percentage of the candidate’s total annual compensation package.
Advantages: Personal, flexible, engaging care for your little one(s).
Disadvantages: Competitive market.
Newborn Care Specialist (formerly “Night Nurse”) or Postpartum Doula:
Note: Hours/week vary greatly, therefore the cost varies significantly.
$1,000-8,000/week, depending on schedule preferences/needs. Term is usually is scheduled anywhere from 6-weeks to 6-months. Total cost (to candidate) ranges from $6,000-$150,000 per term (the higher end of the range applies to 24/7 care).
Agency fees (in order to streamline your search, to receive guidance on how to employ an in-home employee properly and legally, and be able to access top-tier candidates): $3,500-30,000+ as a one-time fee.
Most often, the agency fee is calculated by a percentage of the candidate’s total compensation package. This fee helps agency’s overhead costs, marketing, recruitment expenses, time spent in a customized search, etc. Some agencies do not have a placement fee but take a portion of the doula/NCS’s hourly rate.
Advantages: Parent(s) are able to recover, rest, recharge. Guidance and high-level support with carving out a safe routine, feeding support, and playing a large role in helping baby/babies to achieve developmental milestones.
Disadvantages: Additional costs likely to exist, such as paying for the candidate’s meals, travel expenses.
As you can see above, the cost of childcare can vary greatly. We strongly advise to make choices on whatever is best for your family and to avoid comparing your situation to others. There may also be alternatives or variations of the examples above.
Importantly, if you suspect that you can find a professional nanny for a lower cost than averages above, keep in mind that by paying below the competitive market rate, you may experience a higher turnover rate which results in countless hours searching for (new) caregivers, onboarding, negotiating, etc.
Lastly, paying for a nanny, daycare or a Newborn Care Specialist is expensive, but it is not forever.
We hope this post helps your family to gauge different options and land on the best fit for your family. If we, at Nanny Harmony, can be of any assistance through your search for a part-time, full-time nanny, a nanny/household manager or Newborn Care Specialist, take a moment to fill out our family application and we’ll guide you through next steps!
— Brooke Blazevich, Founder of Nanny Harmony
