My client Jenna called me crying last month. She and her husband both work full-time. They have a 2‑year‑old and a 4‑year‑old. Their daycare bill? $2,800 a month. That's more than their rent.
“We're paying $33,600 a year for childcare,” she said. “That's more than in‑state college tuition.”
She's right. In 2026, the average cost of full‑time daycare for an infant in Denver is about $1,800/month. For a toddler, $1,500/month. For two kids, you're often over $3,000/month. It's one of the highest costs in any family budget – often second only to housing.
The Numbers: What Denver Families Actually Pay
Based on data from the Colorado Department of Early Childhood and my client files, here's what Denver families are paying in 2026:
- Infant (0‑18 months): $1,600‑$2,200/month
- Toddler (18‑36 months): $1,400‑$1,800/month
- Preschool (3‑5 years): $1,200‑$1,600/month
- Before/after school care (elementary): $400‑$700/month
- Summer camps (per week): $300‑$600
A family with two kids (infant and preschool) can easily pay $3,000‑$3,500/month. That's $36,000‑$42,000 per year – more than many people's entire take‑home pay.
Story #1: The Family Who Moved to the Suburbs
Katie and Tom lived in a two‑bedroom apartment in LoHi. Their rent was $2,400. Their infant's daycare was $1,800. Total housing + childcare: $4,200/month. They were drowning.
They moved to Aurora. They now rent a three‑bedroom house for $2,200. Their daughter's daycare is $1,400. Total: $3,600/month. They're saving $600/month just by moving 20 minutes east. The commute is longer, but they're no longer underwater.
Story #2: The Nanny Share That Changed Everything
My client “Sarah” couldn't afford $1,800/month for daycare. She found another family in her building with a child the same age. Together, they hired a nanny for $28/hour. Each family pays $14/hour, or about $2,240/month total – $1,120 per family. That's cheaper than daycare for one child, plus the nanny comes to their apartment. No drop‑off or pickup.
She told me, “I never thought of a nanny as cheaper than daycare, but with a share, it is.”
Assistance Programs (That Many Families Don't Know About)
Colorado has a Childcare Assistance Program (CCAP) that helps low‑ and moderate‑income families pay for childcare. In 2026, a family of four earning up to about $75,000 can qualify for partial assistance. The program pays a portion of the cost directly to the provider.
I had a client, “Maria,” who was paying $1,500/month for her toddler. She applied for CCAP and qualified for a $500/month subsidy. That's $6,000 a year. She used that money to start an emergency fund.
Many families don't apply because they assume they won't qualify. Check the income limits. You might be surprised.
The Dependent Care FSA (Tax Savings)
If your employer offers a Dependent Care Flexible Spending Account (FSA), use it. You can contribute up to $5,000 per year pre‑tax. That saves you about $1,000‑$1,500 in taxes depending on your bracket. That's real money.
My family uses it. We put $5,000 in every year. We get reimbursed for our daughter's after‑school care. The tax savings pay for a weekend getaway.
The Hard Trade‑Off: One Parent Staying Home
For some families, the math works out better for one parent to stay home. If you have two kids in daycare ($3,000/month) and one parent earns $3,500/month after taxes, that parent is effectively working for $500/month. Some families decide it's not worth it.
I had a client, “Lisa,” who was a teacher earning $4,000/month after taxes. Her two kids' daycare cost $3,200/month. She quit her job. The family saved on commute costs, eating out, and stress. She started a small home daycare for two extra kids, earning $1,500/month while still caring for her own children. She's now better off than before.
What About Family Help?
Not everyone has family nearby. But if you do, lean on them. Even one day a week of free childcare saves $300‑$400/month. My mother‑in‑law watches our kids every Friday. That's a 20% reduction in our weekly childcare cost.
If you don't have family, consider swapping with another family. You watch their kids one Saturday, they watch yours another. It's not a full solution, but it helps.
The Emotional Toll (The Part I Don't Always Share)
When my kids were in full‑time daycare, I remember looking at our bank account every month and feeling sick. $2,400 for two kids. That was our largest expense after the mortgage. It felt like we were running in place. I wondered if I'd made a mistake having kids.
That's the part nobody talks about. The financial stress of childcare can make you question your life choices. But it gets better. When kids go to kindergarten, the cost drops dramatically. That's a light at the end of the tunnel.
I will keep posting updates on this. Check back soon.
P.S. Cooper is our cheapest family member. He eats $50/month in food and sleeps 16 hours a day.
This article is for informational purposes. Childcare costs vary widely. Apply for assistance if you qualify.
Marcus Thompson
