EXCERPTS
Most new parents know to start putting money away for a college fund for their kids. But what about a child care fund? With the rising costs, experts say it might be a good idea.
Nichole Peterson has four precious girls. She has stayed at home to raise all of them, and says she wouldn't trade that decision for the world.
"It was a choice that we made before we had children," Peterson said. "We both grew up in homes where our moms stayed home, and it was something that we wanted for our children and something I always wanted to do."
While her husband works full time outside the home, Nichole supplements the family income by cutting hair for friends and neighbors and teaching piano lessons.
On average, it costs about $7,000 per child for daycare.
Not an option, or a desire, for this family.
"I can't imagine paying for daycare and college," Peterson said. "But we were willing to sacrifice so that I could stay home and be with them."
Recent studies show nearly 30 percent of american moms are setting aside their careers to stay home with their children. And for many, it comes down to dollars and cents. Also, where you live has a big impact on how much it will cost.
That's a trend experts have seen continue to grow as daycare prices continue to climb.
"If both mom and dad are going to work and have demanding jobs, they expect that their kids are going to have a great environment for them to be able to develop," said Chris Williams, a financial advisor with Virginia Asset Management. "And with that comes higher costs."
"It's tough enough to be able to put money away into a 529 plan or other type of college savings plan when you're already paying for daycare on top of it. And if you have two kids or three kids, it might be two or three thousand dollars a month," Williams added. "Many people have to wait until elementary school starts and the costs come down dramatically."