2 Overlooked Benefits Parents Can Use to Lower the Cost of Summer Camp
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Summer may be one of childhood’s greatest joys, but for working parents, the end of the school year often means the beginning of concerns over child care costs.
Given the cost of summer enrichment these days, it’s not hard to understand why: The nonprofit American Camp Association found that summer camp providers increased their prices 35% last year amid inflation and a surge in post-pandemic demand.
This year summer camps cost an average of $70 to $120 a day, while overnight camps run $170 to $325, according to an analysis by the camp resource site Summer Camp Hub. These seasonal expenses, combined with rising annual child care costs and inflationary pressures, can create financial hardship for many families.
While child care subsidies in the United States are limited compared to other wealthy nations, there are some federal benefits that can help make child care more affordable this summer. In some cases, people with young children can get reimbursed for day camp and day care costs through an employer flexible spending account (FSA), or they can claim them for a tax break via the child and dependent care tax credit.
"Both benefits help you save on taxes for the qualified costs of child care," says Rachel Rouleau, chief compliance officer for health care advocate and retailer Health-E Commerce. "You just receive the savings differently according to which one makes more sense."
Paying for summer child care with a dependent care FSA
