Like most everything else these days, childcare is more expensive than ever.

If you’re struggling to figure out how to pay for childcare, you’re not alone. In 2020, 57% of United States families said they spent over $10,000 just for childcare.

And with more than 11 million working parents with children younger than 3, childcare is expected to cost nearly $100 billion each year.

How To Pay For Childcare Broken Down

The good news is that if you’re looking into how to pay for childcare in Alabama, assistance may be right around the corner. Here are just a few of the options available for Alabama parents. 

Subsidized Day Care

Administered by the Office of Child Care Subsidy, the state’s Child Care and Development Fund offers low- and moderate-income families an option for childcare in Alabama.

Those parents who qualify are typically participating in educational activities or work full-time, and the program is available in nine different regions in Alabama. There are age and specific gross income requirements as well. 

Usually, families need to be below an annual income threshold to qualify. For example, in 2019, a family of three could have an income up to $27,012 to qualify, which is around 46% of Alabama’s median income.

Temporary Assistance For Needy Families 

The state’s Family Assistance Division funds the Temporary Assistance for Needy Families, or TANF, block grant, an alternative form of support for those at a loss for paying for childcare in Alabama.

It provides an array of services and benefits that allow families to care for their children in their own home or a relative’s home. Assistance is usually received via EBT cards, and the program also offers job training services for parents to find lasting employment.

The average monthly TANF benefit for families is around $200. 

Apply For Free Or Low-Cost Daycare 

The state supports parents looking for how to pay for childcare in Alabama through its subsidy grant programs, but there may be vouchers offered that could cover daycare expenses in full. The Alabama Department of Human Resources Child Care Services Department can provide more information.

Assistance For Military Families 

Many programs in the state help military families cover childcare expenses where they are stationed. One option is MilitaryChildCare.com.

MCC offers families the ability to search through a range of childcare assistance options and childcare programs run through the military. Such programs usually offer a sliding scale for fees based on income. 

Such programs are popular, so they tend to have a waiting list. In those cases, families with service members on active duty can apply for fee assistance in the meantime for childcare if they can’t find a suitable option on base.

Each branch of the U.S. military has its own assistance programs. 

Use Tax Credits

Parents who pay state and federal income tax — and that should be most — may be eligible to get childcare fee assistance through Child and Dependent Care Tax Credits offered by both state and federal governments.

Families with children should qualify for a Child Tax Credit and low-income families usually received an Earned Income Tax Credit.

Use Early Head Start Or Head Start

Those looking for childcare in Alabama have numerous federal programs at their disposal. Head Start and Early Head Start were created to help families who have an income below poverty guidelines set by the federal government.

In addition to free childcare, the programs offer such services as medical care and mental health needs for children. Early Head Start is for children up to 2 years old, while Head Start covers ages 3 and 4.

Consider Payday Loans

Figuring out childcare is hard enough on its own, but it’s made even more difficult when you have to deal with a financial emergency at the same time. Emergencies such as pressing home and car repairs or a trip to the emergency room can be huge financial setbacks. 

A payday loan is an option for relief as a short-term loan offering small amounts of cash to be used to help move on from financial emergencies. At Alabama Title Loans, Inc., you may qualify for a payday loan of up to $500 in as little as 30 minutes.

To get started, just head to our homepage and fill out the short online inquiry form. Once submitted, we’ll give you a call to discuss the few required items for a payday loan and guide you through the rest of the process. Once you are approved, you get your cash as quickly as the same day. 

Get Started Today 

The cost of childcare is expensive, especially to those living paycheck to paycheck. If you’re struggling with how to pay for childcare in Alabama, payday loans may help shoulder some of the financial burdens. Start online today and we’ll be there with you every step of the way.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.