Types of Childcare: A Complete Guide for Parents

There are more childcare options than most parents realize. Each type has different costs, schedules, group sizes, and regulatory oversight. This guide covers every major option so you can figure out what works for your family.

1. Daycare Centers

Daycare centers are commercial facilities that care for groups of children, typically from 6 weeks to 5 years old. They are licensed by the state and subject to regular inspections. Most operate 7 AM to 6 PM, year-round.

Pros

• Regulated and inspected by the state
• Structured daily schedule and activities
• Backup staffing when a teacher is absent
• Socialization with peers in age-grouped rooms
• Full-day hours that align with work schedules

Cons

• Higher cost than family home care
• Larger groups, less individual attention
• More exposure to illness, especially for infants
• Less schedule flexibility (strict pickup and drop-off times)

Average cost: $1,050-$1,380/month depending on age group. Check our calculator for your area.

You can look up inspection records and safety grades for any licensed daycare center on DaycareCheck.

2. Family Home Daycare

Family home daycare (also called family childcare) is run by a provider out of their own home. Most states license these providers if they care for more than a small number of unrelated children (often 3-4, depending on the state).

Pros

• Smaller group size (typically 4-12 children)
• More home-like environment
• Mixed-age groups (siblings can stay together)
• Often more flexible on drop-off and pick-up times
• Lower cost than centers

Cons

• No backup if the provider is sick or on vacation
• Quality varies widely
• Less structured programming in some cases
• May be less regulated depending on the state

Average cost: $750-$1,000/month for toddlers. Licensed family home providers are listed on DaycareCheck with inspection records.

3. Preschool

Preschool programs focus on school readiness for children ages 3-5. They follow an educational curriculum and typically have teachers with early childhood education credentials. Most run part-day schedules.

Pros

• Structured educational curriculum
• Teachers with higher qualifications
• Strong kindergarten preparation
• Lower total monthly cost (due to part-time hours)

Cons

• Part-day hours (3-5 hours) do not cover a full workday
• Often follows a school-year calendar (closed in summer)
• Only serves ages 3-5
• May require supplemental childcare for working parents

Average cost: $400-$800/month for half-day programs. Full-day preschool can run $800-$1,500/month. For more details, see our guide on daycare vs preschool.

4. Nanny

A nanny is a private caregiver who comes to your home (or, less commonly, cares for your child in their home). Nannies are not licensed by the state and are not subject to inspections. You are the employer.

Pros

• One-on-one attention for your child
• Care in your own home
• Flexible schedule (negotiated with the nanny)
• No exposure to other sick children
• Can handle multiple children in your family

Cons

• Most expensive option ($2,500-$4,000+/month full-time)
• No regulatory oversight or inspections
• You must handle taxes, payroll, and employment law
• No backup if the nanny is sick
• Less socialization with peers

Average cost: $15-$25/hour ($2,600-$4,300/month full-time), varies significantly by metro area.

5. Nanny Share

Two or three families share a single nanny, usually rotating between homes. The children get a small-group setting. The families split the cost.

Pros

• Lower cost per family than a private nanny
• Small group socialization (2-4 children)
• In-home care setting

Cons

• Still more expensive than daycare for most families
• Requires coordination between families on schedule, pay, and rules
• Conflict between families can end the arrangement
• No regulatory oversight

Average cost: $1,500-$2,500/month per family, depending on split and location.

6. Au Pair

An au pair is a young person from another country who lives with your family and provides childcare in exchange for room, board, a stipend, and a cultural exchange experience. Au pair programs are regulated by the U.S. State Department through designated sponsor agencies.

Pros

• Live-in care with flexible hours (up to 45 hours/week)
• Cultural exposure for your children
• Flat weekly cost regardless of number of children

Cons

• Annual agency fee of $7,000-$10,000 plus weekly stipend
• Au pair may have limited childcare experience
• One-year commitment (can extend to two)
• You must provide a private room and meals
• Not ideal for infant care without prior experience

Average cost: $350-$400/week stipend + agency fees + room and board. Total cost is roughly $25,000-$30,000/year.

7. Co-op Preschool

Cooperative preschools are parent-run programs. Parents serve on the board, volunteer in the classroom on a rotating schedule, and help with administrative tasks. A professional teacher leads the curriculum.

Pros

• Low tuition (parent labor offsets costs)
• High parent involvement and transparency
• Strong community for families

Cons

• Requires significant time commitment from parents
• Part-time hours only (typically 2-3 days per week)
• Not practical for families where both parents work full-time

Average cost: $150-$400/month, plus volunteer hours.

8. Drop-In Daycare

Drop-in childcare centers accept children on an hourly or daily basis without a regular enrollment contract. They are useful for parents who work irregular schedules or need occasional backup care.

Pros

• No long-term commitment
• Pay only for the hours you use
• Good for backup or occasional care

Cons

• Higher hourly rate than regular daycare ($10-$20/hour)
• No guaranteed availability
• Staff may be unfamiliar with your child
• Less consistency for your child

How to Decide

Start with your non-negotiables. Then narrow from there.

1. Schedule. Do you need full-time (40+ hours/week) or part-time care? This eliminates some options immediately.
2. Budget. Use our cost calculator to see what daycare costs in your area. Then compare to nanny rates and other options.
3. Age. Infant care narrows your choices. For ages 3-5, everything is on the table.
4. Group size. Some children thrive in groups. Others do better with one-on-one attention or small groups.
5. Safety record. For any licensed option, check inspection records on DaycareCheck. For nannies, run your own background check.

Frequently Asked Questions