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Smart Financial Planning for Host Families: Understanding Au Pair Program Costs

If you’ve researched childcare, you know it’s typically an expensive cost for American families. In fact, according to CNN.com, childcare for two children typically exceeds mortgage payments in most of the country. It’s no wonder American families are needing to budget accordingly in their financial plans to include the rising childcare costs in the U.S.

Affordable Childcare Without Compromise

The au pair program is an affordable childcare option you may not have considered. While daycares charge a per child rate, which doubles and triples as your family grows, the au pair program fees remain flat, as does your au pair’s weekly stipend. Families can expect to pay an agency fee around $10,000 in addition to a weekly stipend paid directly to their au pair, which is calculated in conformance with the requirements of the Fair Labor Standards Act as interpreted and implemented by the United States Department of Labor. Some additional fees to keep in mind include a maximum education allowance of $500 annually and any costs associated with an additional adult living in your home, as your au pair will reside with your family. From a cost perspective, families who host au pairs receive in-home, personalized, reliable childcare at an extremely competitive rate. 

Additional Costs to Consider When Hosting an Au Pair

Besides program fees, au pair weekly stipend, and the annual contribution to your au pair’s education, as a live-in childcare provider, you’ll want to ensure you’ve budgeted for another adult living in your home. For example, your grocery budget will likely increase, as may your utilities. Many host families provide their au pair with a cell phone and add an additional line to their carrier’s plan. If your au pair will be driving, you’ll need to add them to your car insurance policy. Creating a simple spreadsheet can outline these costs and allow for a better understanding of dollars and cents to budget for.

Tax Benefits of Hosting an Au Pair

As a host family, you may use your au pair’s stipend and agency fee as a write off on your taxes. Keep a well documented log of expenses paid for your childcare so that when tax time arrives you are organized and able to reference your records. It is recommended that you consult with a tax professional to discuss state-specific considerations. The IRS can provide additional information regarding what qualifies for childcare expenses. 

Au Pair Cost Comparison

If you’re considering other childcare options, like nannies or daycares, doing a cost comparison analysis is a great way to better understand the financial piece of the puzzle. Be sure to include any hidden costs associated with either option. For example, factor in the living expenses of an au pair, but don’t forget to consider that daycares close on certain days and don’t allow sick children to attend. So, there will likely be some days you pay for that go unused. . Fortunately, an au pair can care for your kiddos even if they’re under the weather, which can help working parents tremendously by not having to take PTO and providing peace of mind that their little ones are safe and comfortable at home. 

Childcare Budgeting Strategies

It can feel daunting to start budgeting for childcare, especially if you’re just getting started. Consider downloading a budgeting app or creating a simple Google sheet to get started. Monthly budgets are effective ways to break down costs, but if a weekly budget feels more comfortable, try that first. For the au pair program, you may want to calculate an annual budget and then divide by 12 to allocate the funds accordingly. Keep in mind that program fees are often frontloaded (at least a portion of them) due to the agency’s workload that occurs before your au pair’s arrival related to recruitment, screening, training, and travel for your au pair. 

Au Pair Return on Investment

Most people don’t consider the ROI of their childcare choice. Yes, childcare is meant to fulfill an immediate need of care for your children, but there are some residual effects it can also have in the long run. Au pairs are from other countries, so they will bring a global perspective in their childcare approach. If it’s important to you that your child be exposed to the world through language and culture, an au pair is a wonderful option to make that happen. Additionally, while the au pair program is typically one to two years, au pair and host family relationships often last a lifetime. What a gift for you and your child to have an extended “family” member well beyond the early years. 



If hosting an au pair feels like the right fit for your family, from a financial and overall perspective, we invite you to take the next step in your childcare journey. Au Pair USA has been successfully matching international au pairs with American host families for over 35 years. Apply for free today and experience the benefits of this incredible (and affordable) childcare option.

Marisa Lonic

Marisa is a lover of all things cultural exchange. She and her family have hosted au pairs from Brazil, Germany, Colombia, Spain, and Ecuador. As a mom of four and the founder of Mama Work It, she helps working moms juggle mom life, work life, spouse life, fill in the blank life through her books, courses and coaching programs.