Daycare vs. Nanny in NYC - which should you choose?

How to figure out if a daycare or a nanny is the right option for your family

Is a daycare or a nanny the right choice for your NYC family?

Childcare is the constant topic of conversation (and cause of insomnia) among NYC parents. Figuring out how to juggle full time jobs, childhood development, and bills is the never-ending balancing act of families in the city. For many, a big shock when starting to look into childcare is the cost of daycares. In recent years, the price for daycare has soared in New York and many families are finding that it approaches the cost for a nanny. 

If you are making the calculation to help you choose between putting your child in daycare or hiring a nanny for your family in NYC, hopefully this post can help you. By taking these factors into consideration, hopefully you will be able to make a choice that benefits both you and your child, and puts the whole family at ease. 

NYC Daycare

For many families, choosing to put their child in daycare is mainly a financial decision. Daycare may seem cheaper at the onset and can be the more affordable option if your needs fit exactly within the parameters of their offerings. Especially daycares in Queens and outer parts of Brooklyn can have many affordable alternatives. 

Other pros of daycares: 

• There are often locations relatively close to where you live

• They provide socialization with other kids

• Premier and elite daycares often include educational components and lesson plans

NYC Nannies 

Choosing a nanny as their form of childcare often comes down to parents wanting individualized, flexible care with a person who can give their children the secure and loving care that they themselves would provide. Some parents are also looking for nannies with special skills to teach their children and to prepare them for preschool or school. 

The pros of having a nanny are many, but a few include: 

• The nanny comes to your home, removing logistics from your day

• The nanny can cover all hours you need coverage, with room for flexibility in unexpected changes

• Your child receives individual attention and an adult who is always there to care for them

Is an NYC daycare really cheaper than a nanny?

The realization many parents come to is that the monthly cost of their daycare doesn’t actually end up being their only cost for childcare. Some hidden costs when a child is in daycare include: 

• Getting other childcare for school closures during holidays, snow days and sometimes longer summer breaks

• Getting other childcare when your child is sick and cannot go to daycare (or loss in income if you stay home from work to care for your child)

• For some daycares, a full day only lasts until 3 pm, and the parents then need some other form of childcare if they are not able to pick up their child at that time 

• Extra premiums for infants and children who are not potty trained (if they are at all allowed at the daycare)

• Each child costs the full tuition (some daycares give a discount for siblings)

For a nanny, the only real cost beyond their salary is if you need more than 40 hours coverage per week, in which case you need to pay 1.5x rate in overtime. Other than that, the nanny will be there on snow days, if your child has the sniffles, and any holidays you have not agreed upon together as paid days off. 

As a parent in one family forum explained it, “I went with a nanny which was slightly more expensive but she worked during the summers and such, besides standard vacation days and holidays, and so that saved us money in the long run”

Location, location, location

Naturally, where you live in NYC matters. Families in Manhattan and large parts of Brooklyn are seeing daycare costs shoot through the roof. While some nannies have also been charging more in these neighborhoods, the discrepancy in recent years is much bigger. So unless you want to go far out of your way to drop your kiddo at daycare, this may be another factor in your calculations. 

Do the homework

When calculating the cost for an NYC daycare vs. a nanny, it pays to do the homework. Think through what is most important to you when it comes to childcare. It might be:

• cost

• location 

• skill and dedication of the childcare provide

• flexibility and full coverage so that your work is uninterrupted

Whatever is most important to you, use that to help calculate the total cost of coverage as well as the peace of mind you may get. Maybe you have a flexible job and staying home on days your child is sick isn’t an issue. Maybe you want one dedicated person to take care of your child from the first day you or your partner goes back to work after parental leave and to remain a stable part of their life for years to come. 

If you’re unsure if a nanny is the right choice for you, contact us. As an experienced NYC nanny agency with well over a decade helping parents in this city navigate childcare, we can advise you on what to expect and help you find the answer. We know going rates in your neighborhood and can help you envision what working with a nanny may look like for you.

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