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Family Resilience · Authority Guide

Protecting the Family Against Childcare Cost Shocks

Childcare costs are the second-largest household line after housing for many families. Sudden changes (loss of caregiver, illness) create acute resilience gaps.

In this guide

  1. 1 · Executive summary
  2. 2 · Key takeaways
  3. 3 · Key strategies
  4. 4 · Pro-tips checklist
  5. 5 · FAQ
  6. 6 · Related guides & tools

Executive summary

Childcare costs are the second-largest household line after housing for many families. Sudden changes (loss of caregiver, illness) create acute resilience gaps.

  • Carry 2 months of childcare in reserves
  • Document backup childcare network
  • Include in disability calculations

Key takeaways

  • Carry 2 months of childcare in reserves
  • Document backup childcare network
  • Include in disability calculations
  • Use DCFSA where available

Key strategies

  1. Strategy 1

    Carry 2 months of childcare in reserves

  2. Strategy 2

    Document backup childcare network

  3. Strategy 3

    Include in disability calculations

  4. Strategy 4

    Use DCFSA where available

Pro-tips checklist

  • Backup care subscription services pay for themselves
  • Spouse coverage should account for full childcare replacement

FAQ

Should I insure the caregiver?

No, but life insurance on the non-earning spouse should cover the childcare replacement cost.